GameFi is a money bag, but what is there to know
GameFi is a money bag, but what’s there to know?
For the uninitiated, GameFi is a fusion of the gaming and financial industries. GameFi is a virtual environment in which players can participate and earn money that combines cryptocurrency, blockchain, non-fungible tokens, and game mechanics.
Due to the fact that GameFi projects are built on the blockchain distributed ledger, all objects received by players are considered to be their exclusive property. Users, rather than developers, are given complete ownership of the game's assets through this mechanism. Some of the most popular GameFi platforms include Decentraland, Axie Infinity, and The Sandbox, to name a few.
In the second half of 2021, GameFi surpassed DeFi as the most popular sector in the cryptocurrency market, and according to Newzoo's 2021 Global Gaming Market Report, the global gaming population increased by 5.3 percent between 2015 and 2021, and it now exceeds 3 billion people worldwide.
According to Business Insider, crypto YouTube influencer Jake Browatzke earned approximately 246 TOWN tokens (the currency used in the Gala Games title Town Star) by playing for approximately 30 minutes per day on the Gala Games title Town Star. The token was worth US$148 at the time of purchase. This equates to approximately 75,000 naira per day in earnings!
However, stay away from the hysteria and the hype. What opportunities do Africans have to benefit from GameFi?
What to do to make money
Players earn cryptocurrency in exchange for time spent leveling up, completing quests and challenges, and otherwise improving their characters in crypto games. Aside from that, they make money by charging other gamers to use their land or by participating in tournaments.
When it comes to game accessories, P2E Games sells them as a non-transferable good (NFT). Land, houses, rooms, and structures, as well as weapons and characters such as players and pets, are all available for purchase in-game through this merchant. These characters and lands are required in order to participate in the games. If the game continues to gain popularity in the future, the demand for NFTs will increase, as will the price of NFTs as a result.
In order to make money in Gamefi, one must participate in the game during its early stages. Typically, prior to the game's release, they mint a small number of NFTs and sell them at a discount to the general public in order to promote the game and encourage player adoption. They are also referred to as "mystery boxes" and "IGOs" (Initial Game Offering). IGOs are hosted on a number of cryptocurrency exchanges, including Binance, Bybit, and KuCoin. When a new game is released, the NFTs experience a surge in popularity and excitement.
Aside from participating in the cryptocurrency game, another way to make money is to make an investment in the platform's cryptocurrency token. The price of the Axie Infinity token began in 2021 at $0.538 and reached an all-time high of $165.37 on November 6, 2021, according to CoinMarketCap. A whopping 30637 percent increase in value.
How do I get started?
To get started, a player must first create a cryptocurrency wallet on their computer. Their ability to store digital assets such as cryptocurrency and NFTs would thus be enhanced. Aside from that, they would have the ability to accept and send digital assets to and from other participants.
According to the blockchain on which the game is built, the wallet that a player chooses will be determined by that blockchain. Metamask, a cryptocurrency wallet service built on the Ethereum platform, is required by some games that are built on the Ethereum network, for example.
The next step is to locate a game that you can participate in. The answer to this may be a little difficult to determine because what works for one person may not work for someone else. Players must understand how the P2E game works, the rules of the game (many of which require you to purchase tokens or make an initial investment), how rewards are distributed, how to convert in-game coins to other cryptocurrencies, and, finally, what they intend to do with their newfound knowledge and expertise.
Just a few of the play-to-earn games that are making waves in the industry include Axie Infinity, Gods Unchained, DeFi Kingdoms, SplinterLands, and SoRare.
Each and every one of the crypto games is available for free download. While some games, such as Axie Infinity (which requires at least three Axis to begin), require players to purchase characters, tokens, decks of cards, or upgrades before playing, others, like The Sandbox and Illuvium, are completely free to play.
Advantages and disadvantages
The primary financial benefit that GameFi provides, particularly to Africans, is the ability to earn more money. If you could earn thousands of naira from leisure activities while sitting in the corner of your room in a remote village in Lagos, you would do so without hesitation. User's can earn money simply by having access to the Internet, thanks to the GameFi service.
Aside from that, blockchain-based games have the potential to provide a solution to one of the continent's most perplexing problems, which is unemployment. Additionally, it increases the potential for investment. It has been previously discussed how early investors in Axie Infinity and Decentraland (MANA) made thousands of fold profits when the bubble burst and the market exploded.
GameFi has frequently been accused of adopting the Ponzi scheme business model in its operations. In order to remain profitable, many player-to-player games rely on a constant stream of new users, and they suffer as a result of players constantly cashing out and depleting the game's value. Additionally, observers claim that the peer-to-peer (P2P) industry attracts a large number of scammers and opportunists who are looking for a quick way to make some quick money while leaving the ecosystem without adding anything of value.
Regarding decentralisation, there has been yet another point of contention brought up. It is well known that GameFi is founded on the decentralisation principle, but it is possible that this is not entirely accurate. Players can trade and own the non-fungible in-game tokens, but the game can eventually block one of these tokens, thereby concentrating power in one place.
GameFi has garnered a great deal of attention in a short period of time, and the company's potential is intriguing. For the most part, they will only require a small initial financial investment and a period of learning before they begin to reap the benefits of their efforts.
The fact that cryptocurrency has been codified and accepted is a good thing. However, the opportunities presented by rapid technological advancements in the space continue to grow, and GameFi appears to be one frontier on the verge of massive expansion.
