Roman Semiokhin has extensive experience of business leadership in a range of different industries, including technology, education, real estate and gaming. This article will look at the ever-increasing role of cryptocurrency in the video gaming market, a sector that topped $195 billion in value in 2021 according to Forbes.
Crypto gaming is a relatively new development in the gaming world that incorporates crypto assets and blockchain technology. Crypto assets are essentially digital tokens or assets that rely on cryptography to keep them secure, while blockchain technology is a decentralised system that facilitates secure and transparent transactions between parties. Crypto gaming leverages these technologies to enhance the gaming experience, providing new ways for players to interact with the game. The attached PDF takes a closer look at cryptography and its various different applications today.
By paying them in digital tokens or cryptocurrency based on how they play games and what they achieve, play-to-earn (P2E) games reward players financially. This enables gamers to profit from their skills and passion for gaming. However, for gamers considering taking the plunge, it is important to understand the positives and negatives of crypto gaming.
Adrian Krion is the founder and CEO of Spielworks, a blockchain-based gaming platform. He suggests that people can make money on tokens. One popular strategy is buying digital currency or tokens early in the game in the hope that other players will follow, pushing up the currency’s value. Some crypto games earn money through sales of in-game items, such as certain skins or weapons, or even virtual lands, while others generate income via advertising. Crypto gamers regard in-game rewards as small paycheques earned for completing quests or meeting other requirements.
Crypto gaming is not without risk. One major flaw lies in the fact that crypto gaming tokens are vulnerable to supply and demand dynamics correlating with the game’s popularity. If a game falls out of favour, demand for its in-game currency is also likely to dry up, potentially rendering its tokens worthless. The attached video discusses some of the most popular crypto gaming currencies available in 2023.
Blockchain technology has revolutionised the world of gaming, creating meaningful and practical economic models within games and creating a fair environment where gamers can earn incentives based on their in-game activities. However, as with all investment vehicles, there is no guarantee that money invested in P2E games will bring success. It is therefore crucial for gamers to conduct careful research, taking current market conditions into account prior to investing in any crypto gaming coin.