What is Play To Earn or GameFi? The Future of Gaming and Earning Opportunities!
Unlocking the Potential of Play-to-Earn and GameFi: A Comprehensive Guide to Gaming for Profits
By reading the article “What is Play To Earn in Cryptocurrency and Blockchain” published in Adaas Investment Magazine, you will get acquainted with Gamefi and its usages in general. This level of familiarity can be enough when you need educational information about this topic.
Table of Contents
A Review of the Cryptocurrency Market
In the field of digital assets (Cryptocurrency), we are experiencing a very wide range of types of assets. Unlike other parallel markets in the view of the Forex market, where the number of tradable instruments is a limited number, in the cryptocurrency market we see the introduction and listing of a large wave of blockchain-based assets.
The issue of diversity and the number of assets is one of the differences between the cryptocurrency market and its parallel financial markets. If we want to examine the difference between these markets a little more closely, from an investor’s point of view, choosing an asset to invest in the cryptocurrency market seems like a difficult decision.
For this reason, most successful investors in the cryptocurrency market are surfing new and popular market trends. One of the hottest trends for investors is GameFi and its tradable assets. Along with other applications such as decentralized finance, investors are increasingly pursuing blockchain-based games and their tokens.
What is GameFi?
The term “GameFi or Play To Earn in cryptocurrency” is theoretically a new term in the field of the gaming industry, which refers to games that have been developed with an innovative, economic and financial look based on the blockchain and cryptocurrencies.
This means, for example, that a user buys a piece of land on an NFT platform and uses it as collateral for a loan based on the value of this irreplaceable token on lending platforms.
In this case, the user has both invested in the NFT token he has pledged as collateral and has borrowed some digital currency that he can use to earn money.
What is GameFi in the DeFi and blockChain?
Simply put, people enter a digital world as a user through blockchain-based games, where they can buy digital assets, develop them, and generate a digital economy-based income for themselves.
What is the importance of GameFi or play to earn games?
If cryptocurrencies have been used for investment and speculation to date, this new wave of GameFi tokens will introduce a new application for cryptocurrencies to the community. As we talk in digital space, we share photos to express emotions, GameFi has entered the turbulent market of these assets with the aim of generating revenue based on cryptocurrencies.
The importance of digital assets in the future digital world.
Before we realize the importance of blockchain-based game tokens, we need to fully understand the importance of digital assets.
The wave of digitalization of human life will have an exponential acceleration so that experts in this field predict that human life will be fully involved with digital space in a short time.
One of the main reasons that experts point out is the movement of the economic flow towards the digital economy, and this means that people are forced to interact and develop their business based on the conditions of the digital space in order to earn money.
In the digital world, the house or the car of the people in the non-digital world does not matter, but in the digital world, digital assets are often developed under Non-fungibles token technology or NFTs in the simple term are important.
Just as people in 2021 wish they had bought bitcoin in 2000, in less than 20 years people will regret not investing in NFT-based digital assets.
A very brief definition of heterogeneous tokens or NFT
Any digital asset that does not fall into the category of currency, for example, Bitcoin is a currency with the purpose of the payment, is called non-fungible digital tokens or NFT!
A COMPREHENSIVE ARTICLE ABOUT NFT >
Why is Play to earn so popular in cryptocurrency? The benefits of GameFi
As you have read, with the increasing importance of digital assets, financial professionals and NFT technology developers have sought to gain a better market share of this technology sooner than any other competitor. One strategy is to develop a game-based economic model using the blockchain and cryptocurrency.
For this reason, the economic model of making money while playing has become very popular with people and developers and has led to the transfer of capital to game-based projects based on blockchain and NFT.
Another reason for the rapid growth of blockchain games with the economic model which you have studied is the low per capita national income in most countries.
With the exception of the famous countries and a number of EU countries, people in other countries have been able to earn a living for various reasons, including the lack of economic development of countries, and the desire to earn dollars through these games. Most of these people have a smartphone connected to the Internet and buy and develop these digital assets with a small investment.
Other reasons, such as tackling unemployment, inflation, and existing economic challenges, have led to the release of blockchain-based games.
Play for leisure or for income?
In the past, people used to install and use different types of games for fun and waste of time. But with the development of the economic model of play to earn, people use time, energy, and resources to earn money and increase the level of welfare.
Risks in the development of GameFi or Play to earn games
Lack of human resources and manpower is one of the most important negative consequences of the growth and development of the gamefi industry. In countries where labor is cheap, people with a decent income in exchange for less energy tend to use games with the PLAY TO EARN economic model.
Other risks include the rising trend of scams for the sale of digital assets, the rise of unsubstantiated complaints, and money laundering by the irreplaceable value of digital assets in the gaming industry based on blockchain technology, which due to the rapid growth of this industry has the ability to control It seems a bit far-fetched.
Why is the price of play to earn platform tokens rising?
The factors of price changes of these tokens, like all financial market assets, are determined by the factors of supply and demand, inflation rate on the price of these assets, and the intrinsic value of the assets.
One of the most important factors in the growth of demand for play to earn platform tokens is more than their supply. As you can see, the number of users of the cryptocurrency GameFi industry is increasing day by day, and this user growth is driving demand while the number of tokens is limited.
Another important feature to increase the price of tokens on play to earn platforms is to increase the number of users of each platform. Games that have an attractive economic model or have attractive gameplay and game story, attract more users. Also, how to use and enter it and the simplicity in costs and complexity of the game have a direct impact on the number of users of each platform and ultimately its price.
Top 3 Play to earn or blockchain-based games
Axie Infinity
A game platform based on blockchain technology with fighting gameplay between users. This game allows its users to purchase assets based on cryptocurrencies and develop and trade them.
Decentraland
This platform allows users to buy and sell land-based on NFT technology to their users. Users can develop their assets and use them as collateral on decentralized finance platforms.
The sandbox
It is a blockchain-based game that allows its users to buy, sell and develop digital assets based on cryptocurrencies.
The end words
At Adaas Capital, we hope that by reading this article you will be fully immersed in play to earn platforms in cryptocurrency and blockchain. You can help us improve by sharing the article which is published in Adaas Investment Magazine and help optimize this article by submitting your comments.
FAQ
What Is GameFi or Play To Earn Games?
The term “GameFi or Play To Earn in cryptocurrency” is theoretically a new term in the field of the gaming industry, which refers to games that have been developed with an innovative, economic and financial look based on the blockchain and cryptocurrencies.
What Is The Importance Of GameFi Or Play To Earn Games
In the digital world, the house or the car of the people in the non-digital world does not matter, but in the digital world, digital assets are often developed under Non-fungibles token technology or NFTs in the simple term are important.
