The next article I wish to write is about Decentraland and why am I bullish about it.
Basically, Decentraland is a decentralized virtual reality platform that allows users to create, experience, and monetize content and applications.
If you have watched Ready Player One, that's the concept which Decentraland is going to pursue. For those who have yet to watch it, spare some time to do so. You will definitely be in awe of how awesome the movie is.
"But why Decentraland, why you feel it's bullish?"
Simply put, it provides freedom. The freedom where users can build based on their imaginations, interacting with friends and other users virtually, exploring, play games & contests, appreciating the art pieces at the art galleries and you can even order real Dominos pizzas at their pizza stand in Decentraland (only applies to US citizens).
There are other cool things added in as well; such as a theatre where you can watch short films, a screen where you can watch live stream sports, and there's even a casino.
The casino is not just a virtual casino where users gamble and have fun, but the casino is now hiring users to work with them to earn as well. That's like a better version of GTA 5 Online's casino where mostly it is filled with NPCs. Apart from that, it also creates more jobs especially for those who are jobless during this COVID19 period.
Another bullish reason is that Decentraland is implementing VR soon. Now, that's exactly like the movie 'Ready Player One'.
To go even bullish, what's left is for more big companies to take part in Decentraland, just like how Dominos and Atari do. This way, it will spark more people to join the ship. After all, companies have nothing to lose as they are not only providing benefits to the users but also to themselves. They can set their businesses and supply the demand. For example like AMC; they can provide real movies for the users to watch in the theatre in exchange for MANA rather than waiting for COVID19 to diminish and start back their businesses. It's a win-win situation in this case.
Now, let's jump to the problems of Decentraland:
- Graphically insufficient
- To create and build are expensive
- Plots of land are quite expensive for now and in which worries the users much as the price might inflate even further in the future
- Only 12,000 users recently
With all the statements I wrote, and as I write, the current price of MANA is at 1.16 USD which amounts to a 1.86 billion market cap while Minecraft was bought by Microsoft at 2.5 billion. It seems like Decentraland is undervalued compare to famously known metaverse such as Minecraft, however, based upon statistics, Minecraft has 125 million users in 2020 while Decentraland has only 12K users. Now we have seen the statistics, it is actually quite overvalued. [sources: https://en.cryptonomist.ch/2020/03/01/decentraland-project-users/ , https://www.statista.com/statistics/680139/minecraft-active-players-worldwide/ ]
To my belief, as long as the number of Decentraland users base fails to increase, it will be tough to reach the market valuation and even surpass the real valuation of Minecraft. My statement might be wrong however, I tried to be logical here. To me, a game with a small base of users tends to die off and so their value. For now, the price movement is just speculative.
Thus I only dare to state that cryptoers should hold their position, calculate their risk management and only enter at the dips (if they wish to YOLO). Especially now, as I write, the price of Decentraland already launched at such height. The best is to wait till it has cool down, let it runs out of juice then enter.
The rest is up to individuals to do their own diligence before taking my statements seriously.