The market for video games worldwide will reach INR 15 trillion by 2021. As more gamers worldwide become completely involved in online gaming, it’s inevitable to expect that crypto will play a greater role.
A few games incorporate cryptocurrency straight into the gaming economy.
“Play to earn,” or P2E, games pay players with digital tokens or cryptocurrency according to how much they earn or how they play the games.
Through the process of earning cryptocurrency, gamers benefit from their expertise or passion for playing. However, before making the leap, you must be aware of the advantages and disadvantages of crypto gaming.
What Is Crypto Gaming
Although virtual video game money isn’t an entirely new concept, the rise in blockchain technology has opened up opportunities for developers of crypto games to include a touch of economics from the real world in their games.
Crypto games can win NFTs, also known as non-fungible tokens (NFTs) (also known as crypto) when they play and win the game. Those digital assets become their property. The person who played.
In many instances, digital tokens in games can be trade to stablecoins through decentralized or centralize currency exchanges. These digital assets can be change or sold on marketplaces online or directly converted into fiat currency.
How Does Crypto Gaming Work
There are many different business models for crypto gaming.
P2E games give players a variety of ways to earn or purchase gaming tokens, according to Adrian Krion, founder and CEO of the blockchain-based gaming site Spielworks.
Some games that use crypto earn revenue through the sale of items in the game, like certain skins, weapons or even virtual land.
The developers also encourage players to commit more time to play the game by rewarding players in NFTs or crypto to complete quests. The quests are usually simple tasks that require interaction within the game in a certain manner, like getting rid of a certain amount of enemies or collecting a particular quantity of resources.
Other gaming platforms that offer crypto provide ways for crypto investors to bet their funds in casino games and various games.
BitStarz, 7bitcasino and mBitcasino are the most popular cryptocurrency gambling platforms.
Top Gaming Tokens
The gaming token market has a value of more than INR 1 trillion. This is according to figures that CoinMarketCap has compiled. CoinMarketCap.
They may serve a purpose within a specific game or gaming environment; however, the best tokens also have a significant real-world value. The following are three of the best tokens by market capitalization.
It is one of the top gaming coins with a market cap of INR 175 billion.
ApeCoin is the coin of origin that is part of the Bored Ape Yacht Club, a set of non-fungible coins based on the Ethereum (ETH) blockchain. Third-party developers have included ApeCoin in their games. For instance, players of The P2E Mobile game Benji Bananas get special tokens to trade to ApeCoin.
Decentraland (MANA) is the primary token used in Decentraland, the virtual world created on Ethereum (ETH) blockchain. Users can purchase and sell their digital property, communicate with other users, and even play games in Decentraland.
Players can use MANA to buy Decentraland NFTs that define virtual land parcels or trade them in exchange for other game items and services.
MANA’s market capitalization is greater than INR 143 billion.
The Sandbox is a second metaverse, a digital universe, that runs in Ethereum. Ethereum blockchain. Its Sandbox (SAND) tokens allow various gameplay transactions, such as purchasing digital land parcels known as land.
SAND is a company with a market capitalization of approximately INR, around 127 billion.
How To Earn Money With Crypto Gaming?
Crypto games can see the game’s rewards as small amounts of money they earn to fulfil tasks or other requirements.
Harry Turner, former hedge fund manager and co-founder of The Sovereign Investor, says the in-game objects like armour, weapons skins, other equipment, and weapons could have enormous real-world worth.
“By completing quests and collecting NFTs, investors can generate a profit through selling these items,” Turner states.
DMarket is one example of an internet-based marketplace that sells NFTs and other virtual game products. Some of which are sold in the millions.
2001 was the first time RuneScape users received virtual Party Hats free of charge during the holiday campaign. Twenty years later, Jaffer says these party caps are worth billions of gold pieces in the game. According to Runescape, the most sought-after shade of party hat was sold for 57 billion gold pieces (close to 5 lahks INR).
“It will not be surprised if history repeats itself, and early crypto gaming platforms and currencies investors will be the ones to reap the new real-world rewards,” Jaffer declares.
Crypto Gaming Risks
For crypto players, there are a lot of potential risks with crypto-based games and tokens right now.
A major danger for cryptocurrency gambling tokens is that they’re dependent on demand and supply fluctuations. As it come with the game’s popularity. If players stop playing an activity, the demand for an in-game currency can completely disappear, rendering its tokens useless.
“Because these games are very new and their staying power has not yet been proven, there is no guarantee that their assets will remain valuable over long periods,” Jaffer declares.
Turner adds that substantial risks come with having the currency in games.
“The market fluctuation could directly affect how much you value your game assets. For instance, if keeping a stash of Aurum (the in-game currency used by Crypto Raiders) that you intend to use to purchase virtual goods. The value of it could plummet over a day, and you’ll end up with less money to buy than before,” Turner says.
Since cryptocurrency is relatively new and poorly regulated, criminals are constantly looking to exploit cryptocurrency players through fraud and hacks. Above all, the fact that a game’s blockchain is secure doesn’t necessarily mean that the game’s engine or marketplace is safe. Also, Digital wallets that store crypto gaming tokens may be hacked or handled incorrectly.
Last year, hackers took INR 49 billion worth of Ethereum as a wetland in (USDC) from players of the game Axie Infinity. Axie Infinity is among the most well-known online games and boasted a monthly active player number of over 2.7 million players before the hack. In June, Axie Infinity developer Sky Mavis stated that the company would refund less than a third of the cryptocurrency that users could recover from the hack.
Axie Infinity is consider the most well-known game to earn money.