How to earn cryptocurrencies playing video games?

Cryptocurrencies have gained popularity, but using this type of asset requires a few tricks.

Despite not being a new method of money, cryptocurrencies have had greater visibility in 2020. Moments such as the exponential growth of bitcoin, El Salvador being introduced as a payment method in the country, or Tesla accepting this type of currency as a means of payment, have given a lot of visibility to cryptocurrencies as a means of investment and even as current currency.

One of the sectors that have been closest to this sector is gaming, specially accustomed to the use of virtual currencies or in-game currencies. currencies, in which real money is used to buy improvements and customizations.

However, this model in which the game is free has been criticized as it depends on micro-transactions, which in exchange for ephemeral customizations within the game, multi-million dollar figures are spent, which are at risk of being lost if the game disappears.

With this in mind, formats called “play to earn” or play to win have emerged and are supported by the blockchain and cryptocurrencies. Where these elements, skins, customizations, cards, or characters have a resale value or markets of these tokens in real value in bitcoin, ethereum, etc.

How to play to win bitcoins?

In a masterclass developed by Gamingates, a gaming engagement platform, Pedro Ollero, senior public relations specialist at Razer Iberia, tells about the panorama, opportunities, and risks of these games.

One of the main exponents today is Axie Infinity, a game that allows you to play with a kind of virtual sheep that fight each other. Winning battles rewards tokens that can be exchanged for Axies (AXS) which are then resold on markets for Cryptocurrencies.

To start playing it is necessary to have 3 Axies, these can be bought with cryptocurrencies or you can access a scholarship where Axies are “lent” to you to play and share the profits. This, in addition to entering a startup AXS market, allows you to generate exchangeable tokens for more Axies or consumables when you win, which can later be resold and generate profits there.

While Axie Infinity is probably the most popular, there are blockchain game options for every type of game, for example with Cards instead of Yu Gi Oh you can play Unchained or instead of fantasy leagues play Sorare which With the same option of putting together ideal teams, here real player cards can be resold or traded to improve your online soccer team and still earn money.

Although this seems like an interesting gaming and investment model, there are still several points to take into account before entering formats like this. Pedro Ollero recommends taking into account 4 main points. The first is that not all blockchain games will be successful. And like any cryptocurrency, its value will depend on the volume of players and available tokens. For example, the value of Axie, in July 2021, was just over $8, while the value as of October 1 is over $91, largely driven by the multitude of players that have arrived in recent times.

The second is knowing who is behind each game. Validating the creators, knowing their trajectory and the bases are crucial for this development. Here, knowing the "white paper" and reading its content becomes decisive, since they are based on the creator's reputation.

The third is to be careful with private sales or pre-sale formats. Considering that this type of token is self-regulated, private sales can be considered a risk due to contracts, valuations, or ill-founded speculation. As an example, the Block Monsters case, the simile of Pokémon on the blockchain, was one of the most anticipated games of this format, and thanks to a false contract shared in the telegram group, more than 600 users were scammed in 8 minutes and collapsing. the value of the $MNSTRS to negative levels.

The fourth is the short-term mentality. The cryptocurrency phenomenon and the success stories where we see players/investors buy two houses by selling Axies, can generate an expectation that earning is simple and fast.

This can be detrimental in two ways, personally, by considering these tools as an individual investment space and investing savings, and not seeing immediate big profits or losses, players withdraw immediately, and the second when generating a wave of new investors and exits in "media" moments generate a fluctuating and volatile environment of cryptocurrencies and tokens, which not only generates losses to other players but also dirty the environment.

Despite the fact that these models are becoming more popular every day and we see more companies, such as Binance or Bitso, specializing in cryptocurrencies, it still seems far from being implemented in a common way, especially limited by state regulations such as those imposed by the Chinese government or by its input complexity, either due to purchasing processes or because it is not clear how it works.