How the Bitcoin Crash Affects Video Games Using Blockchain
If you believed in the future of crypto, surely this week has been tough for you.
Once loudly heralded as the future of the investment world, the crypto industry has been hit hard by a series of unfortunate events, including bitcoin value drops to new lows and Binance key trading platform suspends withdrawals.
Once Crypto Billionaires also bleed money.
Financial experts who were never convinced of the viability of crypto in the first place, like global strategist Peter Schiffwere quick to predict that more pessimism is on the way.
Microsoft boss and well-known billionaire Bill Gates also made a point of speaking about the state of crypto in May before the plunge, clarifying that he didn’t own one because, as he put it, ” I like to invest in things that have a valuable output.
Games that promise a financial return
So while all this dumpster fire in the crypto market could mean the endless cascade of celebrity NFTs might finally start to slow down, there’s another group of investors who are still passionate about combining their financial interests with their love of video games.
This has led to spawning several blockchain games that actually have a decent sized playerbase. “Axie Infinity“, a “Pokemon” game that uses what is called the Play to win (PTE), allows players to collect cute little NFT creatures called Axies, which can be collected, raised, and sold in-game.
“Decentraland” is another popular track. Built on Ethereum and fully owned by its users, the game features a metaverse that users can buy and sell goods, hang out with friends, and explore. Kind of like Facebook’s metaverse, but not owned by Mark Zuckerberg (phew).
Many have been attracted to blockchain gaming because many games promise potential investors that they can earn money by playing.
But with crypto tanking as it has been, what does this mean for the future of these games?
Will Blockchain Games Collapse?
Many investors may think it’s time to get out of crypto, but there are quite a few blockchain players who still think differently.
In fact, they invested $2.5 billion in blockchain games in the first quarter of 2022 alone. DappRadar Reports.
That said, the blockchain gaming scene is plagued with its own issues. “Axie Infinity” suffered after an Ethereum sidechain built for it, Ronin Network, was hacked in March 2022, resulting in a loss of assets worth $600 million.
After heavily marketing the game as a way to make money, the ‘Axie Infinity’ creator said it was “never about the money”, leading many to feel like s they had been lured into a crypto-flavored pyramid scheme.
While “Axie Infinity” is perhaps one of the most well-known blockchain games, they don’t missboth established and new to the market.
Whether any of them make money for their users remains to be seen, although there are plenty of social media evangelists who loudly swear they will be billionaires in the very near future. .
And it’s not hard to see why. The idea of playing games and getting paid for it without having to compete on an esports team under grueling pressure to win has a lot of appeal to some.
It remains to be seen whether these early Web3 efforts can actually materialize and make the dream a reality.
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This story was originally published June 16, 2022 11:37 a.m.