✍️ @themikesteez
“Blockchain will disrupt and change gaming in a very similar way to the internet. It might cause even bigger changes because the internet helped interconnect players…but blockchain isn’t just interconnecting people, it's changing the business model of games and creating the potential for better game economies that align players and developers and work much better for both of them.”
— Josh Williams, CEO & Founder of Forte
Alright my dear dear reader, let’s cover some basics.
There are only 2 main reasons anyone would want to play a blockchain game:
- The game looks fun as fuck to play
- You can earn money playing it
You read that right — you can earn money playing blockchain games.
But before I expand on that, let’s take a step back for those of us still catching up.
Blockchain games (which I may also refer to as “crypto games” or “NFT games”) are pretty much like any other video game, except they use blockchain technology for one or more aspects of their game experience.
This technology allows blockchain games to award crypto to players for completing various activities or milestones within a game.
These rewards can be in the form of an in-game currency, an item, a character or some other digital asset (as an NFT).
Here’s where the magic happens:
The in-game currency, items, characters, and other digital assets (NFTs can be exchanged for a mainstream cryptocurrency and then converted into real fiat money (like US dollars)
This concept is called “play-to-earn” (aka P2E) and is central to the GameFi model (gaming + finance) that I cover in Crypto GameBites newsletter.
You might be thinking, “This sounds like a scam. Is this a scam??”
*clears throat and puts on bad French accent*
No, mon amĂ, eet ees not a scam. Play-ers all over ze werld are making mon-ey wiz crypto games.
“First of all, I had a seizure trying to read that, so don’t do that again. Second, if these games are paying players, how do the games make money?”
*returns to neutral accent*
Excellent question.
Blockchain games make money in several ways:
- Players might need to buy some kind of character or starter pack to begin playing
- Players can buy items, characters, or other assets inside the game
- Every time players buy, sell, and trade their items with each other, the game can take a transaction fee
“Okay so it’s not a scam and I can actually earn money playing these games. Do I have to pay anything to play or are they free?”
It depends on the game.
All games are free to download, but many of them require you to buy starter items to play (e.g. a certain character, deck of cards, weapons, etc).
"Cool! So how do I get started?"
Glad you asked. Here's what you gotta do to start playing blockchain games:
- Get a cryptocurrency wallet (which is free) to store your virtual currency + NFTs and make in-game transactions. Which wallet you need depends on which blockchain the game was built upon (e.g. Ethereum, Solana, Wax)
- Since many games are built on the Ethereum blockchain, the MetaMask wallet will work for most of them (if you're not sure, the game website will usually tell you)
- Add funds to your crypto wallet in order to purchase any necessary starter items required to play (not all games require these, as you’ll see. But many of the top games do).
“That all makes sense. But I have one last question: can I LOSE money playing these games?”
Actually, yes, you can.
The exact amount depends on the type of game you play, its unique mechanics, and the value of the crypto or NFTs you have.
For example, you might spend $10 on a game character to start playing the game. Then you win some crypto worth $20. If for some reason the market decides to be a cunt one day, that crypto could be worth just $5 (less than your initial investment).
Same goes for any NFTs (digital assets) you buy. One day it may be worth a fortune, the next it’s not worth 💩.
Crypto and NFTs are speculative and their value can change at any given moment.
So only spend what you can afford to lose, mmkay?
If you’re still confused, check out the short documentary at the link below. It’s about people who earn money playing a super popular blockchain game called Axie Infinity, which is similar to Pokémon.
🎥 Tap here to watch: PLAY-TO-EARN | NFT Gaming in the Philippines
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All investment strategies and investments involve risk of loss. Nothing contained in this magical newsletter should be construed as financial or investment advice. We’re just two brains connecting through cyberspace and shooting the shit about the wild world of blockchain gaming, where buzzwords like “crypto” and “NFTs” roam freely. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Remember to do your own damn research and don’t just ape into things like I did with all those shitcoins from the Spring 2021 bull run.