How NFT games are changing the economy 
Best NFT Games,  Gaming,  NFT Gaming

How NFT games are changing the economy 

Non-Fungible Tokens, or NFTs, serve as a means of establishing ownership of digital assets. An NFT assigns the virtual item a unique and non-transferable certificate and verifies ownership via the blockchain. And the usage of NFTs to sell millions of dollars’ worth of digital art prompted many developers to realize the possibility for players to earn money on their platform especially with NFT games.

The issue now is whether this is a good thing. Can anyone now earn a life via internet nft games? Or is this the beginning of the emergence of mega-corporations exploiting the system and illegally profiting from people?

Below, we’ll look at the subject of NFT games.

Innovative Technology

The concept of the NFT was born out of blockchain technology. By associating a virtual item with a unique identifier, one may now establish ownership of readily duplicated files. Consider the selling of a short looping video titled CROSSROAD.

Due to the fact that it is an internet file, almost anybody may download, copy, and distribute it. However, since it was sold as an NFT, the purchaser may demonstrate that they are the only owner of this file. It’s comparable to owning the Mona Lisa and possessing a certificate of authenticity attesting to the validity of your replica.

Consider the following. The Mona Lisa was deemed public domain after Leonardo Da Vinci’s death over 500 years ago. Therefore, if someone replicates the picture and puts it on a shirt, the owner of the original—the French Republic—is powerless to prohibit it. Additionally, they are not compensated for each sale.

However, since the French government can vouch for the painting’s authenticity via its lineage, the Louvre’s Mona Lisa is deemed priceless. In comparison, the Mona Lisa blouse you purchased outside the museum is probably worth little more than $10.

Similarly, for NFTs. Because it gives provenance for any digital asset purchased, such as the CROSSROAD film, you can then demonstrate that the asset is authentic—meaning that anybody can track the file’s origins all the way back to the creator, as well as verify who owns it.

How NFTs Became Popular

As the epidemic decimated employment and companies globally, many individuals began exploring for online income opportunities. Axie Infinity is one such means of earning money. This game is similar to Pokémon in that it allows users to acquire, grow, breed, fight, and trade digital animals.

Monthly earnings from this game are typically about $400. This, however, is subject to change depending on the exchange rate between the game’s cryptocurrency and the US dollar. However, since it is an online game, it does not need any specific abilities, making it a potential source of income for many.

This game got popularity in the Philippines by June 2021. This occurred as a consequence of viral postings by multiple players highlighting their accomplishments, such as acquiring a new home, as a result of playing the game. Numerous players have also established a “scholarship” scheme in which they loan their animals to individuals who cannot afford to invest in return for a portion of the earnings. By September 2021, the majority of Axie players will be Filipinos.

How Players and Businesses Profit From NFTs

Typically, you must buy copy of a video game in order to begin playing. Generally, though, NFT-based NFT games are available for free download. However, in order to begin playing, you must purchase NFTs. These are beings in the eyes of Axie Infinity. It might be a hero, armor, or weaponry in other NFT games.

When you complete an accomplishment in the majority of NFT NFT games, you not only get experience and badges, but also a little bit of cryptocurrency that the game creator utilizes. You may then use them to purchase further in-game stuff or cash them out for local money.

Additionally, many NFT games enable you to purchase and sell NFTs to and from other players. This manner, new players may get desired things without having to grind for them—they are just exchanging money for time. Additionally, the creators often receive a portion of each in-game transaction.

As more players get interested in the game and invest in the game’s NFTs, those who joined earlier may sell their NFTs and profit. Additionally, the game creator gains money for each transaction that is completed.

Meanwhile, some opt to grind their way into the game and transfer the cryptocurrency they earn via gameplay to local cash.

The corporation earns money when an in-game NFT is transferred between players. And it is only through their continued interest in the game that they are able to make money and grow their in-game realm.

Volatility and the Supply and Demand Issue

However, as history has shown, cryptocurrencies are renowned for their volatility. If you look at Bitcoin’s price history, you’ll see that it’s fluctuated significantly—from a dollar in 2011 to $20,000 in 2017 and then down to $5,000 in 2020. It increased to $60,000 in April 2021, then plummeted to $30,000 in May. It is presently priced at above $50,000 each piece as of September 2021.

Cryptocurrencies are readily impacted by random events. For instance, when Elon Musk posted a picture of his dog, the Shiba Inu (SHIB) cryptocurrency’s value increased by about 91 percent.

That is also a problem with cryptocurrency, which is used in the majority of NFT games. Due to the fact that they are mostly reliant on a single game or have a small user base, unpredictable occurrences may easily cause their value to change significantly.

Therefore, if you spent one Bitcoin to acquire a sizable virtual property and the exchange rate suddenly lowers to $10,000 per Bitcoin as a result of Tesla’s decision to stop accepting it as payment for their vehicles, you would have lost $40,000 overnight.

Additionally, a game’s cryptocurrency would have value only if there is a demand for it. A game creator earns money only if their game has continual transactions. Thus, as long as there is interest in playing and purchasing NFTs, the developer will profit.