Play to Earn - Crypto's Next Big Move?

You were there when Bitcoin was being thrown around, literally going for free should you be so kind to read an article, share an opinion, register. I mean, I clearly remember passing on the offer to be given something for free which I had absolutely zero use for.

Most people only got acquainted with crypto once records started being broken. Did you pass on the chance to get it for free? Then how about buying it for $0.01? $1? $100? Sure, if we had a time machine, we would go back to 2010 and get it for $0.10, keep it until the latest high and start picking the colour on our Lamborghinis

By the way, I have a particular distaste for the concept of "crypto and lambos" often used to sell the dream to those that are yet to understand the role of crypto in the world we live in.

How we're doing in 2021

Fast-forward to late 2021, and we're now considering altcoins and its season, with a particular eye on those that may - may is the correct term - serve as the foundation and fuel for the Metaverse. A concept that many of us are still struggling with, but which makes perfect sense. Especially, if you've been around since the first PC booted, the first games ran on any system and your dial-up connection made its first call out to a global network.

That excitement built upon the crypto universe and the ever-evolving blockchain behind it is now delivering tons of play-to-earn games. You've read it well: Play. To. Earn. Pick the same principles of any gaming economy that has moved giants such as Fortnite, World of Warcraft, and several others you've never heard of, and suddenly you're in a market that's worth Billions.

Why Play-to-Earn could change how we think about gaming

Up until recently, what keeps us gamers at it? I'll confess to being an avid gamer since I was a kid. My ZX Spectrum would take ages to load a game, sometimes 20-30 minutes, only to pick up on some error and start laying the foundations to a more resilient, patient self.

I only enjoy playing a few titles, but I'll often have a dozen available on my desktop - and console. Up until recently, I've steered away from online games with massive economies. They're time-consuming, extremely competitive and, therefore, hard to reconcile for a parent that manages his own content business from home.

But make no mistake. Once the kid is asleep and all orders are met, I can't resist a little dip in a virtual world. Call it stress-management, call it my guilty, inexpensive pleasure. We all have our own poisons, and we get by with doing what we enjoy most - for me, it happens to be gaming.

December 2021 and I found my way into my very first crypto play-to-earn game. I still see these in a very early stage. Don't expect amazing graphics, intense gameplay to the same level you find AAA titles from the likes of Ubisoft or EA. But do expect that at some point those big boys will have their hand on the pie.

What does it take to play a Pay-to-Earn game?

My first go at such an experience demanded an investment upfront. Not a blind bet, even though I must say these are extremely risky investments. So if you do find the concept interesting, do realize this: you risk losing ALL your money.

Since these games rely on building up hype and a community, it's hard to say which will have a future and which will burn overnight. I'd say at this point they'll all burn overnight. So the following is merely my experience, and that of close friends.

I picked up a game and bought my way into this absurd NFT world, as so many do nowadays. Early backers of such games have a theoretical advantage over the rest of the crowd. Usually buying a cheaper way in, but also taking much more risk upon their shoulders. Other games such as CryptoGuards, Coinracer, Zodiacs and Zplane have been gaining traction at this point.

I invested a decent amount and ten days later and only with only 5 minutes of play a day, I got it all back from the game. Please show me anything legal which ROI sits around a 15-20 day window. Literally, as the play-to-earn concept rewards your time playing with game tokens. Think of these as the game's currency, which you can convert to real money, reinvest in the game, convert to your favourite crypto, hold, stake, earn interest, you name it.

Is it about broken Tokenomics? Of course. You're a gamer, and you're looking at a piece of… rubbish. There's no real gameplay, no decent graphics. It's just a bunch of pieces moving around while the system mints those NFTs, rewards users and takes a cut for the owners.

Genius! You know you can't stay too long.

I have friends that have now invested $2,000-$3,000 in a single position. Across several games. Some of the rewards are insane, but so are the charts that measure the performance of such tokens against, shall we say, USD. It's a crazy world, but there are a few opportunities that don't demand huge investment upfront.

Is it a Ponzi scheme? You betcha!

There are so many out there, and the ones left holding the bag will never get their money back. You've seen it with altcoins, memecoins, and even some very shiny tokens promoted by the largest names in crypto history.

FTX, anyone?

Don't be surprised to find the once valuable token has now dropped in value by 10x. 100x by the time you wake up tomorrow. Worthless the day after. From rug pulls to absolute liquidity drains, once these games top, the Ponzi is complete and it's time to run for the hills.

It's an unfair, disgusting world. But that also shows how we are still in the very early days of crypto.

Is the future of gaming Pay-to-earn?

Think of The Sandbox Game. If you had the opportunity to try it - which I have, weeks ago - it's an interesting concept about what the Metaverse could eventually be. Big brands, such as Atari and even Snoop Dogg, have their presence here. And users are still paying for the privilege to access it, but also to profit from it.

We may find everything and anything in the same space. The place where we'll play is the place where we'll work, socialize, consume entertainment, but most importantly: buy products and services. It's a long way still, but things keep heading towards more digital, not less.

As long as such games are in their early stages and their tokens are inexpensive, you may find the next decent cryptocurrency in its ever-evolving ecosystems. So far, most still need to have some understanding of how crypto transactions, wallets, and fees work to get around it.

Things will be even more exciting when you can buy your way in as easily as ordering your Uber Eats, or buying something on Amazon. It's definitely that merge in technology that propels these concepts towards mainstream and turn them into billion-dollar projects.

I remain excited about games at the age of 40, even if I feel the magic is gone. But I'm also extremely cautious about where it will all lead. I'm sure most of these games won't be around in a year, if not far less, as I am that such rewarding systems are only valid at the build-up stage.

Even though I hold a decent position within crypto, with a strong focus on altcoins that show great promise, I also believe there's great room for games that reward you for your time. Most importantly, for believing the foundations of their project. After all, that's what took Bitcoin to $50k and what gets us huge variations in tokens that represent very little sometimes.

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