GameFi: A New Way For Investors To Earn While Having Fun

Key takeaways

The younger generation is a proponent of decentralization and favors choosing projects based on their prospective applications rather than their potential for financial gain.
Whatever happens to the game, in-game purchases may still be made and sold, and new games can be made to integrate with an existing blockchain system.
They will probably do this by partnering with other blockchain initiatives that have the necessary technological know-how to realize their goal.

The younger generation is a proponent of decentralization and favors choosing projects based on their prospective applications rather than their potential for financial gain. This is the driving force behind the attraction of the majority of genZ investors to the GameFi economy.

GameFi: Earn Gaming NFTs Easily #

Decentralized finance (DeFi) and gaming were combined to produce GameFi. It alludes to the financialization of video games in a way that gives players complete control of whatever digital prizes they win. Due to the fact that ownership is distributed among builders, investors, and participants, it is seen as a sector of Web 3.

This gaming system creates a virtual world in which players may take part and earn tokens by fusing blockchain technology, non-fungible tokens (NFTs), and game mechanics. They may convert these tokens for cash by trading them on cryptocurrency exchanges and NFT markets.

The Market Analysis for the GameFi Community #

In 2022, Chainplay conducted a survey of 2428 GameFi investors across the globe to understand why they decided to invest their money into blockchain games.

Following are the statistics pulled out from that survey: #

3 out of 4 investors worldwide are entering the world of cryptocurrencies because of GameFi. 68% of GameFi investors joined the market in the period of 2021–2022, revealing the expanding popularity of this industry.
It is also reported that in 2022, investors across the world will spend an average of 150 minutes per day in GameFi, which is 43% less than the average time of 2021.
In the community, 51% of people intended to make money off of this technology, and on average, Gen Z cryptocurrency investors put 52% of their net worth in GameFi.
In the previous several months, 89% of cryptocurrency investors globally observed a decline in their GameFi earnings, with 62% of them losing more than 50% of their gains.
Because they are wary of investing in ventures that involve rug pulls, Ponzi schemes, and pyramid scams, 73% of the respondents avoid GameFi.

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The Benefits of Earning Gaming NFTs through Web3 Gaming #

There can be many benefits of decentralization. Here are the main advantages of joining the GameFi community:

Ownership: #

Who doesn’t enjoy being in charge? GameFi gives you the opportunity to earn through NFTs in gaming settings, as opposed to conventional in-game purchases that are useless outside of the game.

In this sense, the player, not the game creator, is in true control. In-game purchases may be saved, sold to other players, or transferred to other compatible games, thanks to blockchain technology.

Interoperability: #

On centralized servers, traditional online games are hosted. As a result, private systems that do not communicate with one another house the in-game assets.

On the other hand, decentralized games may be found on other blockchain that serve as the foundation for other linked games. As a result, game assets represented by NFTs may be created to work together in a variety of settings.

Provable Scarcity: #

The NFT collectors are usually fond of rare and authentic assets, and the unchangeable records inherent in an NFT’s underlying blockchain network serve as evidence of the rarity of in-game NFT purchases; hence it is easier to prove any NFT’s authenticity without any hassle.

This decentralized public ledger verifies each NFT’s identity, serial number, and ownership history.

Immutability: #

GameFi is generally platform independent, as it is live on the blockchain itself. If any traditional game shuts down, the user will lose all their ’earnings,’ but this will not happen in the case of blockchain games.

Whatever happens to the game, in-game purchases may still be made and sold, and new games can be made to integrate with an existing blockchain system.

Furthermore, because of the permanent record each NFT produces upon the issue, blockchain-enabled game assets cannot be copied or altered.

Ways to Invest in Web3 Gaming: #

There can be several ways to invest in GameFi or Web3 gaming:

Play-and-earn: #

This is one of the approaches toward earning gaming NFTs where players can invest their time in playing the games and earn tokens and NFTs in return. This is especially important for developing nations where there is considerable potential for revenues compared to the local economy and per capita income.

Playing games based on these principles is one of the easiest ways to get started investing in NFT gaming.

Rent-to-earn: #

Many of the well-known NFT games now need a sizable investment to start playing and earning, thanks to industry advancements.

Numerous gaming guilds assist members in purchasing gaming NFTs by giving newcomers the opportunity to rent through a scholarship scheme. The guild and the player then split the profits.

This is another strategy that lowers barriers so that players may take part and profit.

In-game currency: #

There will be an in-game token that will act as the game’s currency, and the user can make direct investments in these tokens.

To determine whether to use this strategy, one aspect that must be taken into account is how restricted the token supply is. Given the sustainability and demand of the game, games with a limited quantity of tokens are more likely to value.

Governance tokens: #

Governance tokens are also probably included in blockchain-based games. The holder of a governance token can vote on treasury management issues and modifications to the smart contract code.

Stakeholders have a compelling reason to acquire governance tokens since they have sway over the game’s economics. Some of these tokens grant voting privileges for the protocol’s strategic direction.

Additionally, these tokens sometimes come with rights to cash flow that are comparable to dividends with stocks.

Initial Game Offering: #

By making an investment in an IGO through launchpads, you can earn discounted NFTs or tokens for forthcoming games.

Investors might anticipate a substantial return on investment if the game becomes well-known and is listed on prominent exchanges.

BottomLine: The Future of GameFi #

The Web3 gaming sector is relevantly new and the benefits now may seem very over-the-top and exclusive, but they come with significant obstacles that you need to tackle.

NFTs must, above all, be made more enticing and understandable to ordinary customers who may not be technically minded. NFTs have inherent value, thus there’s a chance that some of them will be primarily employed as speculative assets.

Despite these obstacles, the potential for financial gain in the gaming sector will push more businesses that are not blockchain-focused to experiment with NFTs. They will probably do this by partnering with other blockchain initiatives that have the necessary technological know-how to realize their goal.

Related reading

In 2022, [Chainplay conducted a survey](https://chainplay.gg/state-of-gamefi-2022/? #

msID=f39a9fdf-6834-4d77-ab7d-3b74f67c8403) of 2428 GameFi investors across the globe to understand why they decided to invest their money into blockchain games.

Who doesn’t enjoy being in charge? #

GameFi gives you the opportunity to earn through NFTs in gaming settings, as opposed to conventional in-game purchases that are useless outside of the game.