NFTs, or Non-Fungible Tokens, are used to prove ownership of digital assets. An NFT gives the virtual object a one-of-a-kind, non-transferable certificate and uses the blockchain to verify ownership. And, as a result of the use of NFTs to sell millions of dollars worth of digital art, many developers have realized the potential for players to make money on their platform, particularly with play to earn gaming.
Now the question is whether or not this is a good thing. Is it now possible for someone to make a living by playing video play to earn gaming on the internet? Is this the start of mega-corporations taking advantage of the system and benefiting unlawfully from people?
We’ll take a look at how to play play to earn gaming to make money in the sections below.
Technology that is novel
Blockchain technology gave birth to the NFT idea. It is now possible to establish ownership of easily replicated files by associating a virtual object with a unique identifier. Consider the sale of CROSSROAD, a short looping film. Click here if you want to buy Axie Infinity.
Because it is an online file, it may be downloaded, copied, and distributed by nearly anybody. Due to the fact that it was sold as an NFT, the buyer may be able to prove that they are the only owner of the file. It’s the equivalent of owning the Mona Lisa and having a certificate of authenticity proving the legitimacy of your copy.
Consider the following scenario: After Leonardo Da Vinci’s death over 500 years ago, the Mona Lisa was declared public domain. As a result, if someone copies the image and prints it on a shirt, the original owner—the French Republic—is helpless to stop it. Furthermore, they are not paid for every sale.
The Louvre’s Mona Lisa, on the other hand, is considered priceless since the French government can guarantee for its legitimacy via its ancestry. The Mona Lisa shirt you bought outside the museum, on the other hand, is probably worth less than $10.
The same may be said about NFTs. Because it provides provenance for any digital item acquired, such as the CROSSROAD video, you can show that the asset is genuine—that is, anybody can trace the file’s origins all the way back to the author and verify who owns it.
How NFTs Grew in Popularity
As the pandemic ravaged jobs and businesses throughout the world, many people started looking for ways to make money online. One such way to make money is via Axie Infinity. Users may acquire, raise, breed, battle, and trade digital creatures in this game, which is similar to Pokémon.
The average monthly profits from this game are about $400. However, depending on the exchange rate between the game’s cryptocurrency and the US dollar, this might fluctuate. However, since it is an online game, no special skills are required, making it a viable source of money for many.
By June 2021, this game has gained popularity in the Philippines. This happened as a result of several players’ viral posts promoting their achievements, such as the purchase of a new house, as a result of playing the game. Several participants have also set up a “scholarship” program in which they loan their animals to those who can’t afford to invest in exchange for a share of the profits. Filipinos will make up the majority of Axie players by September 2021.
How NFTs Benefit Players and Businesses
In most cases, you must purchase a copy of a video game before you may play it. NFT-based play to earn gaming, on the other hand, are usually free to download. You must, however, pay NFTs before you can begin playing. In Axie Infinity’s perspective, they are entities. In other play to earn gaming, it might be a hero, armor, or weapons to win points.
When you complete an achievement in most NFT play to earn gaming, you get not just experience and badges, but also a small amount of bitcoin that is used by the game author. You may then use them to buy more in-game items or sell them for real money.
Many play to earn gaming also allow you to buy and sell NFTs to and from other players. New players may get desired items in this way without having to grind for them—they are just swapping money for time. In addition, the developers are often paid a percentage of each in-game purchase.
Those who joined earlier may sell their NFTs and benefit as additional players get interested in the game and invest in the game’s NFTs. In addition, the game’s inventor receives money for each successful transaction.
Meanwhile, other players choose to grind their way into the game and then convert the bitcoin they earn into local money.
When a player transfers an in-game NFT between them, the business makes money. And they can only generate money and expand their in-game area if they maintain their interest in the game.
The Supply and Demand Problem and Volatility
Cryptocurrencies, on the other hand, are known for their volatility, as history has proved. If you look at the history of Bitcoin’s price, you’ll see that it’s varied a lot—from a dollar in 2011 to $20,000 in 2017 and then down to $5,000 in 2020. It rose to $60,000 in April 2021 before dropping to $30,000 in May. As of September 2021, it is now priced at more than $50,000 a piece.
Random occurrences have a big influence on cryptocurrencies. For example, the value of the Shiba Inu (SHIB) cryptocurrency soared by 91 percent when Elon Musk shared a photo of his dog on Twitter.
This is also a concern with bitcoin, which is utilized to gain play to earn gaming in the majority of cases. Unpredictable events may easily cause their worth to shift dramatically since they are largely based on a single game or have a tiny user base.
As a consequence, if you spend one Bitcoin to buy a large virtual property and the exchange rate drops to $10,000 per Bitcoin overnight as a result of Tesla’s decision to cease taking it as payment for their automobiles, you would have lost $40,000 in one day.
Furthermore, a game’s cryptocurrency would only be valuable if there was a market for it. A game developer can only make money if their game has ongoing transactions. As a result, the developer will benefit as long as there is interest in playing and acquiring NFTs.