This is something that I had always wondered about, can a person actually earn cryptocurrency with real- world value just by playing games or is this just a platform/way to lure people to engage and play their games. I hope this article can answer the question ’Are Play-to-earn games an actual fun way to earn crypto thereby increasing your $$ or just a well collaborated idea to increase a games’ popularity, engagement and consequently their pockets.
CAUTION: I am not giving out advice but just talking about it generally
What is play-to-earn Crypto Games?
At their core, play-to-earn crypto apps are pretty simple. They are games that allow you to earn cryptocurrency as you play online games. The actual process of earning crypto varies from app to app, but it typically involves completing in-game tasks or reaching certain milestones.
They let players earn rewards with supposed “real-world value” for completing tasks, battling other players and progressing through various game levels. These rewards come in the form of in-game assets like cryptocurrency tokens or NFTs in the form of virtual land, as well as skins, weapons and other in-game items. Each play-to-earn economy is backed by their native token and is subjected to that tokens governance, issuance rate and network security, which are all possible risk factors that can impact the value of the token.
While the games themselves are legitimate, cryptocurrency websites have flagged a number of scams associated with play-to-earn apps. For example, some apps will promise huge rewards for playing but will then make it nearly impossible to actually cash out those earnings. Other apps will simply disappear, taking your hard-earned crypto with them. This is why it’s important to do your research before you start playing any play-to-earn crypto game.
Benefits and Risks of Play-to-Earn Crypto Games
As with anything related to cryptocurrency, there are both risks and rewards associated with these games. Here are some benefits and risk factors:
PRO’S
• You can earn cryptocurrency without investing any money.
• Play-to-earn games are a fun way to learn about cryptocurrency and blockchain technology.
• There is a growing number of play-to-earn games to choose from, so you are sure to find one that suits your interests.
CON’S
• There is no guarantee that you will actually earn any cryptocurrency from playing.
• The value of the cryptocurrency you do earn may fluctuate wildly, so you could end up losing money in the long run.
• Many play-to-earn games are still in their early stages, so they may not be around for long.
While you could probably get away with playing the game for free and earning a reward that is not worth your time the other option available will be to reinvest in the game. This can come from outside capital or using your in-game rewards to buy up more tokens, hold more tokens, buy up more items and lock up more capital. If you’re planning to invest or play a game, ask yourself how they are pulling money into the ecosystem. Does the game have a revenue model outside monetizing the user base and putting new obstacles in their way that encourage them to reinvest in the game?
Play-to-earn games are a new and exciting way to earn cryptocurrency. However, they come with a certain amount of risk, and it is not recommended to invest more money than you’re willing to lose. Some popular revenue generating methods include:
• Advertising space in the game
• Leveraging the games treasury to earn capital that is redistributed to the users
• Fees for market trades between players
• One-of-a-kind purchases/Limited print runs of items
• Physical merchandise sales
• Sponsored tournaments and branded events
If none of these is evident, you may want to avoid these games, as they are all living on borrowed time.
CONCLUSION
It seems like an amazing concept, but just like Bitcoin itself, it is more complicated than it initially appears. And similar to all things crypto, it’s best to approach play-to-earn games with a bit of caution and due diligence.
What do you think about Play-to-earn Crypto games; Is it a Scam or an innovative idea, let me know your feedback