GameFi - Earn Money While Playing
What is GameFi and why is it revolutionary?
Hey DEFI TIMES community,
Crypto gaming is on fire!
At this point, crypto gaming (GameFi) has become a completely new ecosystem in crypto. It’s a new way to make money. The concept is simple: Play games and get rewarded.
The gaming industry as a whole was worth over $90 billion in 2020. It’s another billion-dollar market that crypto is set to disrupt.
We started with finance, went on to go after art… next up is gaming!
How do I know that? Well, GameFi has undoubtedly hit product-market fit. My assumption is based on two facts:
People love to play games
People love to make money
Create a game that s super fun to play and include the possibility for users to earn money with it. The perfect combination!
Today, we have a variety of projects building the future of gaming: GameFi!
Finance + Gaming = 😎
Making money while playing... it’s the dream of every teenage boy!
Turns out this dream came true with GameFi!
But to understand how it works, let’s explore the largest crypto game right now: Axie Infinity!
📺 Watch our recent video about stablecoins coming to Cosmos!
Axie Infinity - The Gamer’s Dream
Axie Infinity is a crypto game, which has seen significant user adoption in 2021.
The rules are simple: you create a team of three creatures called Axies. These Axies have various skills and you can fight with them against either a computer-controlled opponent or other real-life players.
Usually, Axie wouldn’t be all that different from other video games. But Axie was one of the first mainstream games to leverage NFTs. NFTs create scarcity in a digital world… your Axies are actually worth something!
Axie Infinity creates an economy around Axie NFTs because it takes time and effort to mint an Axie NFT.
By playing Axie Infinity, you earn tokens. You can use these tokens to breed another monster NFT.
That means your time is actually worth something.
You play Axie Infinity
You get rewards in form of Axie NFTs
You can use these NFTs to mint more NFTs
Believe it or not, there are actually people in the Philippines who earn more money with Axie Infinity than with their regular jobs. Some articles came out describing that playing four hours of Axie Infinity yields more than the minimum salary in most regions of the Philippines - crazy!
That’s the future of gaming!
GameFi introduced a new form of UBI - without any government involved!
Just the free market doing its thing!
GameFi Will Change the Gaming Industry Forever
Now that we understand how GameFi works, let’s think about what it can do for humanity.
As we discussed, Axie Infinity is already changing lives in the Philippines. People there play Axie Infinity and earn actual money.
They are having fun and earn more than working regular jobs.
I’m sure some people even got crazy rich along the way.
Just take a second and appreciate how beautiful this is: Financially weak people have the chance to significantly increase their living standards by simply doing what they love: Playing cool games!
This simple fact makes GameFi superior to all other forms of gaming.
Would you rather play a game without any compensation or get paid for it? The answer is rather easy!
I have no doubt that many more popular games will adopt NFTs and financial incentives in the future.
Rethinking Universal Basic Income
If you take this one step further, you realize that GameFi has the potential to change the world for the better.
Why? Because it’s a completely new form of Universal Basic Income (UBI).
Universal Basic Income is the idea that every citizen in a particular country receives an equal amount of money on a regular basis.
Proponents of this idea claim that it would raise the living standards and average well-being of the population. However, there are some problems left to be solved. For example: Where does the money come from?
It’s safe the say that we have to make at least some trade-offs:
Do we need to raise taxes?
Maybe print more money?
GameFi seems to be the perfect solution to the Universal Basic Income problem. GameFi is not a top-down concept imposed on the people; it’s a bottom-up phenomenon, which emerged naturally.
People can choose to participate… or to opt out!
Crypto has come up with another form of UBI. And it seems to be superior to the original idea.
Conclusion
Right now, the niche of GameFi is in its infancy. However, have no doubt that it will positively impact society in a big way.
It’s a new form of UBI – and we will see many different games adopting it in the future.
The concept is so superior to ordinary gaming that I think most companies in the gaming industry will have to adopt it.
I’m definitely keeping a close eye on where the GameFi industry is heading!
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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.