A Basic Look to NFT and Crypto-Gaming

Non-fungible tokens (NFTs) first gained popularity in the world of art. This lucrative industry has opened its doors to the gaming world. It also has propelled cryptocurrencies to a different level of popularity here in the Philippines.

What are NFTs?

Many people get drawn in these play-to-earn games, but not all of them are familiar with blockchain. So, let’s have a basic understanding of what NFTs are and how do they work.

Fungibility of an Asset

Fungibility pertains to the feature of an asset being tradable to another similar asset. But both should have the same value. Fungible assets include:

  • currencies (five 10-peso coins into one 100-peso bill)
  • commodities of the same grade (example: the US No. 2 yellow corn, regardless of the place of harvest)
  • cross-listed stocks

An asset is not fungible when it sells by weight, number, or other variables that bring unique qualities among other assets. Non-fungible assets may be but are not limited to the following:

  • artworks of a deceased artist (irreplaceable with replica or print version)
  • real estate
  • diamonds (because of its varying cuts and sizes)

Non-fungible Tokens

Non-fungible token (NFT) is a digital asset that is also unique. No other item can have the same value as that asset and so cannot be replaced. You can buy these tokens, own them, and sell them. The amount of money you can get from an NFT depends on its level of uniqueness.

NFTs are registered in a blockchain ledger. Every data such as the owner, vendor, or date sold is digitally stored and encrypted. These details contribute to its scarcity and authenticity. Five of the most expensive NFTs ever sold are:

  • Metarift – digital artwork of a mysterious designer named Pak sold at 904.41K USD
  • Not Forgotten, But Gone – a video of a rotating skeletal gummy bear sold at 1 Million USD
  • The first very Tweet – Twitter CEO and Founder sold the app’s first tweet at 2.9 Million USD
  • Everydays: the First 5000 Days – a digital artwork by Beeple sold at 69.3 Million USD
  • Crossroads – another artwork by Beeple sold at 6.6 Million USD

What is Crypto Gaming?

Crypto-gaming is the integration of NFTs and video games. By making the elements of a game (such as items and characters) into NFTs, players can upgrade their characters, buy or sell items, or exchange items with other players. This trading makes use of cryptocurrencies.

Since these blockchain games are NFTs, you exclusively own all the items in the game even the developers can decide what you should do with them.

If you’re wondering about the game’s lifespan, it will stay active as long as there’s an economy that keeps it running. Cryptocurrencies have skyrocketed that NFT games will highly be active for years. It means that you should have time to buy, hold, sell, and earn money as long as you keep playing.

How do NFT games make money?

Blockchain games are popularly labeled as Play to Earn games, but how do you get money out of them? First, it is different from e-sports tournaments in that only players with skill qualifications can join and earn money by beating other contenders. It is also different from streaming which lets you earn through viewership and live gifts.

As mentioned above, crypto-games involve buying, selling, and trading using cryptocurrency. These cryptocurrencies are unique to the game that you need to purchase with real money. By expanding your in-game assets (NFTs), you accumulate more cryptocurrency, which you can convert into real money. You can cash out using your preferred platforms.

However, the mechanic of the games differs from one another. Some are simple as farming simulation and pet collections. Others get more intensive because it involves battles and real-time strategies. It’s essential to find the game type that fits your personality or lifestyle.

Where to buy Crypto Games

No skill qualifications or a standard number of viewers are needed to start playing crypto games. As long as you can buy the crypto coins, you can play and earn.

It is required to set up a wallet first. You use this wallet to buy crypto coins and receive your earnings. There are various online wallets that you can use to start your crypto gaming endeavor. Examples are:

  • online wallets – Coins.ph, Coinbase, Metamask
  • desktop wallet – Exodus, Electrum
  • hardware – Trezor, Ledger

But aside from your wallet, you also need a stable internet connection and a playing device. Crypto-games can be accessed and played through:

  • smartphone
  • desktop/laptop computer (download and setup)
  • web browser

Are crypto games worth it?

Unlike most of the games you can download, blockchain-based games are not for free. It’s an investment in a more entertaining form, wherein you have to spend cash to earn. Invest big to win big – or lose big.

An investment has its risks cryptocurrencies are considered riskier. Cryptos are volatile, and so values fluctuate suddenly. The level of risk is too high that BSP does not endorse them as an investment vehicle. However, cryptocurrencies are also the hottest assets, proven by the verifiable stories of earnings seen over the news. So, it’s up to your decision if you will get into this endeavor.

For financial needs, be it emergency or to buy in to NFTs, the choice is yours. GDFI has the best loan product for you.