• Crypto gaming is not a clearly defined term
• Players can monetize through cryptocurrency or NFT
• Also opportunities for investors
According to a study by DappRadar and the Blockchain Game Alliance, blockchain games saw a 2,000 percent growth in 2021. But blockchain games – like crypto games – are not a clearly defined term, as they include many of the crypto activities that take place in the gaming sector.
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Earn cryptocurrency by playing games
One way to connect the two worlds together is the chance to earn cryptocurrency by playing video games. So called Play 2 Earn games have made it possible for players to earn money with their virtual successes for quite some time now. However, in the rarest cases, players get paid in cryptocurrency – at least not without making a similar investment in digital tokens themselves beforehand.
One of the most popular games in this segment is Axie Infinity. The game has a similar game concept to Pokémon & Co. By acquiring virtual creatures, called Axies, which can be bred and bred, players can acquire, breed and breed virtual creatures (Axies) and use them in battles against other players. The money can then be made by selling rare Axies, for example.
Since the number of mating possibilities per Axie is limited and additional in-game items are needed for breeding, the Axie Infinity player’s income also depends on luck and additional investments. There is also the principle of supply and demand. The number of other players willing to place a virtual object on the table depends on various factors whose prices cannot be reliably determined. The fluctuations in the exchange rates of the in-game currencies AXS and SLP also make it difficult for players to reliably generate income. However, the system works in principle: if you sell a rare Axie for more money than you invested yourself, then you can exchange the income for other cryptocurrencies or Fiat money and thus generate income.
Earn money with NFTs games
Non-fungible tokens, NFTs, have recently found their way into the gaming industry. NFTs secure the ownership of the owners of specific virtual items by acting as certificates of authenticity and the non-interchangeability of the item. In the gaming sector, there are vast possibilities that are already being exploited by many game developers and publishers.
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Players with special in-game items receive proof of ownership on the blockchain and can collect, exchange, or resell the item in this way. This concept is already used in games that put sensors in the Metaverse. Among the famous pioneers Decentraland and Sandbox, Axie Infinity also belongs to this category. In this video game, players can buy virtual plots and design them virtual according to their wishes. In addition, some avatars can be equipped with special items. Here, too, an initial capital investment is necessary, because players usually have to buy NFTs before they can be resold.
Big game developers such as Electronic Arts (EA) and Ubisoft have also announced their desire to develop NFT games. At the end of 2021, EA President Andrew Wilson said NFTs were an “important part of our future.” However, game developers also benefit financially from the introduction of the NFT, where a certain percentage of all sales must flow into their pockets. Players, who are a generous target group anyway, will not only benefit from the ability to trade their obtained items, but also benefit from the fact that the design of the in-game environment, avatars, etc. can be so. Games’ unique NFTs will convince you.
The criticism of NFTs does not stop
But by no means all experts and representatives of the gaming community rate the latest developments in the gaming sector positively. Concerns about the environmental aspect are raised time and time again. Since NFTs are based on cryptocurrencies, the issue of high energy consumption associated with such projects is of particular interest. Cryptocurrency transactions leave a clear carbon footprint, and the additional energy consumption goes against the desire for climate neutrality.
Another point of criticism is the evaluation of NFTs. Since these fluctuate greatly depending on supply and demand, but have no intrinsic value per se, unlike gold, for example, their value often depends on subjective evaluation and narrative hype. A sharp drop in the price may lead to disproportionate losses to the owner of the NFT.
In the video game sector in particular, criticism also comes from their ranks: many gamers accuse game developers and publishers of letting the creative side of video game development take a back seat, while the monetary aspects come to the fore. In particular, if players gain in-game advantages through NFTs or if the concept takes on a casino-like structure, the application of NFTs in video games may also deter many players.
options for investors
However, it is indisputable that monitors will influence the video game market. The entry of cryptocurrencies into the gaming market has potential and generates new revenue streams for game developers and gamers. But even those who do not gamble themselves can benefit from the developments that are driving the gaming industry towards a decentralized future.
Many Metaverse currencies can also be traded on cryptocurrency exchanges apart from the video games they are associated with. In addition, investors can also buy shares of publicly traded video game makers to participate in the crypto gaming trend. In addition to Ubisoft and Take-Two Interactive, Electronic Arts and Activision Blizzard in particular are worth a look here, even if not all game groups have yet announced large-scale crypto initiatives. Activision was recently acquired by technology giant Microsoft, confirming the American company’s ambitions in this field and also drawing the attention of investors to the stock in the Windows maker.
The parent company of Facebook, which was recently renamed Meta, also has plans in the crypto sector and is planning a large-scale virtual reality world. With Facebook, WhatsApp and Instagram, where NFTs testing has been announced, the company has strong distribution channels and a large pool of potential customers initially.
Gaming ETFs are a good option for those who do not want to risk making a single investment or buy Metaverse currency. The investment can spread here, which reduces the risk. In addition, it is also possible here to participate in the game market with little money.
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