A cryptocurrency is a digital or virtual currency protected by cryptography and almost impossible to counterfeit or spend twice. In 2021, the global market for video games will exceed $195 billion. As more gamers worldwide fully immerse themselves in online gaming, cryptocurrency will undoubtedly continue to gain importance. A few games already use cryptocurrency in their in-game economies. P2E, or “play to earn,” games reward players with cryptocurrencies or virtual currencies like xrp usdt or one usdt by their performance or gameplay. Gamers can earn bitcoins by capitalizing on their gaming knowledge or excitement. But before engaging, gamers should become familiar with the benefits and drawbacks of crypto gaming.
What Is Crypto Gaming?
Cryptocurrencies in video games are not a novel concept, but the advancement of blockchain technology has allowed makers of cryptocurrency games to include elements of real-world economics in their works. Crypto gamers can obtain cryptocurrency like non-fungible tokens (NFTs) by participating in and winning a game, and these items become the player’s property. Digital tokens used in games can be swapped for stablecoins on centralized or decentralized cryptocurrency exchanges. These digital assets can be directly exchanged for fiat money and bought, sold, and traded online.
How Does Crypto Gaming Work?
Many business strategies exist for cryptocurrency gaming. Adrian Krion, the creator and CEO of Spielworks, claims that P2E games provide players with several ways to acquire gaming tokens. People can profit from these tokens, says Krion, “by purchasing them early as well as [hoping] that several players will join the game afterwards they purchased the tokens.” Several cryptocurrency games generate revenue through advertising or selling in-game goods like weapons, skins, or even virtual territories.
The best tokens also have significant real-world value, even though these tokens may only be helpful in a specific game or gaming ecosystem. By market capitalization, the top three are as follows:
With a $2.23 billion market capitalization, ApeCoin (APE) is generally the most valuable gaming token. The most valuable gaming token overall is ApeCoin (APE), which has a $2.23 billion market valuation. The ApeCoin is essentially the native coin of the Bored Ape Yacht Club. The Ethereum (ETH) blockchain typically serves as the foundation for this class of non-fungible tokens. There are already games created by third parties that use ApeCoin. For instance, players of the P2E smartphone game Benji Bananas can easily switch their old tokens for ape coins.
Decentraland is the native token for the online community Decentraland, which is mainly built on the Ethereum (ETH) network (MANA). Users can easily buy and sell digital property in Decentraland, interact with other users, and even play games. Players can use MANA to buy Decentraland NFTs, which represent virtual land parcels or trade them for other in-game goods and services. MANA has a market value of more than $1.8 billion.
The Sandbox is a different virtual environment or metaverse built on the Ethereum blockchain (SAND). The Sandbox (SAND) tokens facilitate several gameplay-related transactions, including acquiring virtual land parcels known as LAND. SAND has a market value of roughly $1.6 billion.
How To Make Money Playing Cryptocurrency Games
For cryptocurrency players, in-game prizes are akin to small payments they receive for fulfilling objectives or tasks. The game offered free digital Party Hats to gamers as part of its Christmas promotion in 2001. Twenty years later, according to Jaffer, these party hats are now worth billions of in-game gold coins. According to Runescape, the most sought-after hue of party hat went for 57 billion gold pieces, or almost $6,700.
Risks Of Crypto Gaming
Unfortunately, several hazards are now connected to using cryptocurrency for games and tokens. One significant danger is that the supply and demand dynamics linked to the game’s popularity apply to crypto gaming tokens. There may no longer be any demand for in-game money when players quit participating in a fun, making its tokens worthless.
Criminals Looking For Ways To Exploit Crypto Gamers
Criminals are always looking for ways to exploit crypto gamers through hacks and scams because cryptocurrency is new and poorly regulated. The engine and marketplace of a game are not secure just because the underlying blockchain is safe. Crypto gaming tokens stored in digital wallets can also be hacked or mishandled.