- Crypto games allow players to earn digital coins while playing, which can then be traded for other cryptocurrencies or fiat currency.
- Mass majority of gamers expected to transition to play-to-earn games in the next five years.
- Will cause rapid growth in the gaming economy, create thriving communities, and increase opportunities for both players and developers.
As the blockchain and cryptocurrency industries have grown, so have the number of crypto games, which allow players to earn digital coins by playing. Whether they’re used to introduce people to crypto, make a living, or just have fun, crypto games will have a significant impact on the gaming industry and the future of society. This article serves as an introduction to the concept of play-to-earn crypto games, providing an analysis of their value as well as future effects.
What are Crypto Games?
Crypto games are a relatively new form of gaming that is growing in popularity. There a wide variety of play-to-earn crypto games, which each operate under their own set of rules and procedures.
Many of these games allow players to earn digital coins by playing and trade them for other cryptocurrencies, like Bitcoin and Ethereum, or even cash them out for fiat currency. There are even some games that allow players to gamble money (called "faucet-style" games).
One of the most popular crypto games is called “CryptoKitties”. Players can collect, breed, and exchange virtual cats that hold real monetary value. The game is notable for being widely considered the first decentralized application made for gaming/recreational purposes.
The Value of Crypto Games
As cryptocurrency becomes further accepted by mainstream society, more individuals gain interest in learning how it works. Crypto games provide a useful tool for introducing said individuals to the world of cryptocurrency. It's an interactive way to learn about crypto because you can see how everything works in practice, as opposed to just reading about it on the internet or seeing it in action on some other website or app.
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A more obvious benefit of play-to-earn crypto games is the ability to generate income while engaging in a recreational activity. People can enjoy access to more streams of revenue while exerting a relatively low amount of effort. Some crypto games are designed to be “played” while idle, which means that users can earn capital even while sleeping.
Crypto games can create tightly interwoven communities. Some games create their own cryptocurrency to be used in the game, meaning that the coin gains value from having a large, committed player base. The game’s developers have a strong incentive to listen closely to player feedback and incorporate their input, which creates a better gaming experience for players and generates benefits for the developers. However, if too many users stop playing the game, the coin loses its value and the game’s monetary incentive is drastically reduced.
Future of the Gaming Industry
Although they’re not yet mainstream in the gaming world, crypto games are catching on quickly.
Reddit co-founder and venture capitalist Alexis Ohanian recently claimed that in the next five years, “90% of people will not play a game unless they are being properly valued for that time.” He explains that video game developers are constantly competing for players, leading many to offer greater incentives to players. As a result, players are beginning to place greater importance on their time and will spend it playing games in which they actively earn rewards.
This phenomenon will cause rapid growth in the gaming economy, leading video games to become even further integrated into mainstream society. Many players are already able to make a living by livestreaming and creating content relating to video games. However, making a full time living from playing games, even without streaming or creating content, could become a common occurrence in the near future.
Crypto games allow players to earn digital coins while playing, which can then be traded for other cryptocurrencies or fiat currency. They can be used as an interactive tool for introducing individuals to cryptocurrency and will generate more avenues of revenue. The mass majority of gamers will transition to play-to-earn games in the near future, causing rapid growth in the gaming economy, creating thriving communities, and increasing possibilities for both players and developers.