A recent report by Chainalysis revealed stunning figures of how much money gamblers raked from virtual coins in 2021 only. According to the data, crypto gaming community took home not less than $167.7 billion.
If this has not sunk into your head yet, $167 billion is close to three times the annual budget of a country like Finland. According to The Global Economy, Finland’s 2022 budget is estimated at $67 billion.
Chainalysis report however went ahead to clarify that the data released did not cover any losses that may have been incurred by these investors. Other expenses such as taxes had not been factored in too. While issuing the findings, the firm acknowledged that there was a need to assess crypto transactions deeply to find more accurate figures including precise gains and losses. Nevertheless, the income that investors are making from the crypto economy still stands at staggeringly high numbers.
Why does it matter?
Different reports indicate that investors earned an estimated $32 billion only from crypto in the year 2020. The gain witnessed in 2021 represents a more than 5x jump in growth. What accountants and economists will refer to as ‘abnormal growth.’ Part of this might be justified by the rising value of different virtual currencies as interests surge. We have seen notable investors like Paul Tudor and Tesla adding BTC to their balance sheets. On the other side, there is an unanswered question as to whether crypto is starting to fulfil its early days’ prophecy of taking over the fiat economy. Could these numbers mean that more and more people are flooding into blockchain-related investments? And could crypto replace cash one day?
Young Generation Contribution
Gen Z has played the biggest role in the growth of the crypto economy. Most of them lack trust in traditional investments and opt for alternatives that promise quicker and better returns. Meme stocks and the meme coins such as the Shiba Inu have also created a crypto wave that’s not about to start. Lastly, the outburst of NFTs in 2021 gave investors a firm reassurance that digital currencies are here to stay.
The future is bullishly crypto and more crypto. NFTs have just started making waves, and the metaverse is still a work in progress. Gambling providers are not being left behind too. More people from across all generations are learning about digital coins, and if this is something to go with, the figures reported by Chainalysis will be a mere drop of the ocean in the future. On the other hand, we are likely to see tighter government regulation in this sector in the future. The US, UK, China, and Japan are already doing major overhauls of their policies to include detailed cryptocurrency regulations. Online casinos accepting cryptos also face a future of tight policies, especially related to money laundering and taxation.