The crypto space has created a whole new economy. Venture Capital companies made around $30 billion worth of crypto investments.
Digital Assets have been on a roll in the year 2021.
As per Google Search Trends of India, in the year 2021, “How to buy dogecoin in India” was the 6th most searched how to query on the search engine.
“How to invest in Bitcoin” ranked 9th in the same list.
The crypto buzz is not limited to just India. As per transaction data compiled by PitchBook Data Inc, cited in a Bloomberg article, Venture Capital funds splashed about $30 billion into crypto projects in 2021.
It is almost quadruple the previous high of around $8 billion in 2018.
“We’ve moved beyond just digital gold. We’ve got financial services, art, gaming as a subcategory of NFTs, Web 3.0, decentralized social media, play-to-earn — all of that made investors think, `We don’t have enough exposure,’” said Spencer Bogart, General Partner at San Francisco-based Blockchain Capital LLC, one the largest investors in the industry that has funded more than 120 companies since its establishment in 2013.
The surge is so huge that crypto-specific Venture Capital firms like Coinbase Ventures, Digital Currency Group and Polychain Capital have emerged.
“Investors are funding anything and everything,” PitchBook analyst Rob Le opined.
Earlier, the crypto space was seen as limited to investment in cryptocurrencies. Now new segments such as Non-Fungible Tokens, Play-to-Earn, Decentralized Social Media, etc. have emerged. So investors whether retail or institutional have more incentive to participate in the crypto economy.
The $30 billion tally includes investments in Robinhood Markets Inc. and Revolut Ltd., companies that just scrape the surface of crypto.
This year Bitcoin achieved its all-time high and also beat the Chinese mining crackdown. Such volatility is not deterring investors from pouring in more money. Crypto adoption also met its watershed moment when El Salvador declared Bitcoin as legal tender.
At the time of press, Bitcoin was trading at 46511 USDT on Binance.
The Web 3.0 space is creating a separate internet economy with different business models. For instance, Play-to-Earn games pay any individual player just to play the game. Crypto space is unregulated at the moment. Once it is regulated, the common masses will embrace it and a whole new generation of products will be created.
News recommendation: Can NFTs Transform Web Authentication?