2020 has been one long year, and a lot has happened throughout it. However, because of the sheer volume of events like the political scene and, of course, the pandemic, it was hard to pay attention to how virtual assets like cryptocurrencies were doing. However, that’s behind us now – 2021 is here, and promising to be a good year for anyone who invested in their virtual holdings.
Those in the know are already aware that these assets were actually pretty stable throughout last year, and all the signs point to 2021 bringing even more stability to this world. This goes for all the options here, from cryptocurrencies to expensive CS:GO skins and the like.
So, if you want to learn more about virtual assets in general, and why 2021 might be an important year for those who deal in them, read on for a quick overview of the current state of things, and some predictions on how the market will progress.
Virtual Assets Have and Hold Value
A common misconception is that virtual assets are unstable, and can lose value at the drop of a dime. For most of them, this is very untrue, as long as people are rational about it. Yes, there have been severe drops in the value of certain cryptocurrencies like Bitcoin in the past, but that was only due to human irrationality, and it wasn’t long before the coin was back in the game.
Other virtual assets are even more stable, especially in the gaming world, where there’s no such thing as over-saturation of the market. Let’s take CS:GO as an example, their skin market is one of the biggest and most important out there. The resources, or skins, are practically unlimited, except for those extremely rare ones that are only available during specific events or times of year.
That means that there isn’t going to be a random spike in the market where everyone suddenly drops a boatload of money into chests and decreases the value of those rare items. On the other hand, you can invest as much as you like, as you are pretty much guaranteed at least a small profit, as long as you know when to sell.
Most Popular Virtual Assets to Get Your Hands on
“Most popular” is a broad term, and depends solely on who we are talking about. If we’re discussing people who want to earn and hold their virtual wealth until it multiplies, then there’s no doubt that cryptocurrencies like Bitcoin, and various others that have sprung up are the most popular.
However, there’s a whole other side to the virtual possessions industry – gaming. Gaming on its own, even without the added virtual assets you can acquire is a huge industry with crazy high revenues. However, when combined with virtual assets that people can trade with each other, it turns into an absolute unit that can take on most other industries with how much money is transferred at any given second.
Are There Any Risks Involved?
When it comes to trading with virtual assets, we are forced to think about it as something close to a stock market, but not quite the same. You try to buy your assets when the price is low, and hold on to them until the optimal moment to sell – the optimal moment being when demand and price are at its highest.
However, unlike investing in stocks of some company you’re unsure will hold its value, when it comes to virtual assets, the market doesn’t fluctuate that way.
We’re not saying that it’s stagnant, but it moves and grows completely differently than “real” stocks. An especially valuable virtual asset will most likely hold its value for the foreseeable future, and that’s why they make such good long-term investments. It’s always a risk to sell something that holds such a value, but it’s absolutely a high risk / higher reward situation.
Is the Market Expected to Grow in the Future?
The market is predicted to grow more than ever before in the future, as at one point, the corporations will stop the investigation and simply dip their toes in the water that is virtual assets. Even now, the market for cryptocurrencies, for example, is huge, and is only expected to get bigger in 2021.
As for the virtual assets that have more ties with gaming and gaming platforms, there isn’t a huge growth expected, but sometimes all you need is for the market to be stable. And that it very probably will be, as there aren’t any factors right now that could change the status quo in these online marketplaces.
In general, anything that deals with virtual assets, and internet transactions has been in a steady growth during the pandemic, and seeing as many new people have gotten into it, and just now discovered the possibilities, 2021 may turn out to be an important year in the history of virtual assets.
If you were unsure whether you should invest in virtual assets, we hope that this overview gave you the insight necessary to decide. It’s definitely not a bad time to dive into this world, and you might want to catch that wave while it’s going on, as it’s only predicted to get bigger and bigger.
As this theoretical wave grows, so do your chances of profit, as long as you have the patience and instinct to wait for the perfect moment to cash in on your digital currency.
If you’re still hesitant, just remember, you don’t have to go all in right away, you can start with baby steps, and work your way up the ladder of virtual assets at your own pace. The market is expected to be steady, and that’s the most important thing you could worry about when pondering investments and possible outcomes and profits.