One of the biggest sensations in the current financial world is crypto. You can’t get it off the chart for longer. However, crypto is creeping into the gaming world too. Companies invest more in this enterprise due to its potential ROI (return on investment).
If you’ve also heard the news on crypto gaming, this article can be a start for you to learn more on this topic. Here, we’re going to share some important aspects of crypto gaming, attempting to know whether it is worth the hype it’s getting late.
Crypto Gaming: What Is It?
You might know about it already by playing mobile crypto games on iOS or android. Crypto gaming has introduced blockchain, which helps gamers use their rewards in different crypto gaming projects. This is unlike traditional games, where users aren’t allowed to capitalize on their rewards and gains from the games they play.
Crypto gamers can earn money by playing various crypto games. There are different play-to-earn models where players swarm to try their luck. One of the most established and popularized models in crypto gaming is buying game characters, upgrading their gears and skills, and then selling them at higher prices.
There’s another thing called an Ethereum-based token, which involves battles between players and their upgraded characters. Here, they can earn AXS and SLP by participating in these duels.
With this grand opportunity for gamers, crypto has stirred the whole crypto gaming industry.
But the interest in this groundbreaking system isn’t only attracting gamers. Investors from various walks of business are also biding their time to step into this arena.
Why Is Crypto Gaming So Intriguing?
There’s undoubtedly something that intrigues gamers and investors equally about crypto gaming. Players can still get fiat currencies to buy in-game currencies, upgrade characters, and advance themselves in the game. Then what else is there to get the competitive edge?
Well, it’s ownership. Crypto gamers can feel they own something valuable by playing and leveling up. Here, what they earn has longevity and diverse investment opportunities, unlike traditional games. Blockchain tech ensures this to the core.
Earning crypto assets by playing crypto games while being able to sell them to other players or traders is a thing that gives wings to the players’ gaming enthusiasm.
Another aspect of crypto gaming that intrigues millions of gamers and investors is its scope of earning money. Other traditional games only allow you to level up your players by investing more money into it.
However, in crypto gaming’s play-to-earn model, you not only get to invest but earn profits from the crypto gaming coins. In a few countries, for instance, Switzerland, Hong Kong, the Philippines, etc., people are taking crypto gaming and investment as an income source.
Is Crypto Gaming Promising?
Since its inception, crypto gaming has gone through many debates and controversies, but its appeal to investors hasn’t tailed off.
Instead, a brighter future seems to be waiting for gamers and investors in this arena.
You’ll be amazed to learn that many start-ups are raising their initial funding through investing in crypto gaming— and they’re raising not just hundreds or thousands but millions!
Besides, large companies are funding projects of millions of dollars for crypto games. Some of those funding ranges from three hundred to five hundred million dollars. Enterprises like Future Ventures, Mark Cuban, etc., are notable names on this list.
Blockchain companies also precipitate crypto gaming business interest to uphold this market. They’re investing in blockchain games due to their decentralized finance system. This is a promising sign for the crypto gaming industry as vast investment doors are opening to lift this for a stronger future. In fact, over a hundred crypto gaming companies have received a little over a billion investment in 2022.
Risks of Investing in Crypto Gaming
No investment or potential industry comes free of risks. In crypto gaming, there’s a shortcoming of accessibility. What happens is a player can’t access a game without having a certain number of specific players.
For instance, Axie Infinity will require you to have at least three Axies to enter the game. When investing in three characters poses a higher investment issue, there’s no guarantee sometimes to have the optimum ROI.
Besides, there’s a risk of becoming a victim to scams or unsupported crypto wallets. Either your tokens and NFTs can be hacked by the unreliable wallets or get lost in the wallets that don’t support the crypto. So, if you aren’t careful enough, it might break your crypto fund significantly without even letting you know for a certain period.
The main reason that can be derived from the crypto gaming system behind such fraudulence is its open accessibility and less secure verification system. It’s because most operators don’t need to keep up with registration compliance; hence, anyone can access the database, hack the system, and dwindle the funds from the wallets.
Furthermore, due to the limit of crypto token withdrawal, you can’t cope with the unpredictable price fluctuation in the market. This poses a risk of going down with your crypto gaming investment.
Another worrisome risk factor of crypto gaming is its introduction to gambling. Whether it’s openly said or not, experts say the structural and psychological approach to a new feature of crypto gaming called ‘loot boxes’ or ‘loot crates’ highly resembles gambling.
Technically, loot boxes are virtual boxes players can pay to open for unlimited gaming items. Such items may include currencies, collectibles, outfits, weapons, etc.
Since crypto gaming has become one of the easiest ways to earn money online, experts are concerned that the younger generation will be engrossed in it more than ever.
This article will give you a heads-up before investing in crypto gaming. Whether you’re a player or an investor, you must measure this industry’s market, investment opportunities, and risks.
Since crypto gaming is an alternative to the conventional gaming industry, it might initially appear lucrative. Nonetheless, since it’s all virtual, you better equip yourself with enough information before putting your hands on the business.