Crypto in Gaming

30.09.2022

Many say that the idea of cryptocurrency was here long before crypto was even a thing. How is that possible? It’s quite simple - a form of “digital currency” had already existed and was quite valuable to a certain group of people - gamers. If you were ever a hardcore player of MMO RPGs such as WoW, you may already know what we’re talking about.

Gaming tokens and cryptocurrency - the similarities

Many of us used to escape reality into virtual worlds through games such as World of Warcraft or Second Life. To help you progress or enhance your character in these games, you could complete quests or “work”, and earn virtual currency. With this currency you could progress to new levels, buy in-game items, change your character’s appearance, etc. - you probably know the drill. Just like crypto, game tokens are intangible. It may seem like compared to crypto, these tokens lack value, because they’re practically only used in the game. However, to make progress in games more quickly, gamers would be willing to exchange their real-life funds for these virtual tokens. Thus, in-game currency gained actual, monetary value.

Play to Earn games

You may have already heard of the term “Play to Earn”. These games usually work on the basis of NFTs (Non-Fungible-Tokens) that you can buy or create and sell, rent, or exchange them. Whatever holds value in these games, whether it is your avatar or some points you collect, you can exchange for crypto or cash. These games provide an opportunity for gamers to generate income with their gaming skills. These games do, however, often require a small financial investment to get started. You either have to buy (or in another way acquire) an avatar or a token that will allow you to play. These games are also referred to as GameFi, as they combine the concepts of DeFi (if you haven’t already, check out our article about DeFi here) and gaming. This is because of the use of decentralized applications and DeFi mechanisms such as staking. 

Blockchain and the future of gaming

GameFi and Play2Earn concepts managed to transform the purpose of gaming. In fact, blockchain is slowly but surely penetrating multiple industries and becoming a useful part of the digital economy. Popular gaming titles, such as Assassin’s Creed have already announced efforts to implement blockchain technology into the gaming experience somehow. One of the recent buzzwords is “the Metaverse”. This term and idea have already been around for a relatively long time, however blockchain technology is what brings the idea closer to reality. With this massive transformation and Metaverse focus, gaming could become much more than a hobby or a form of entertainment. The childhood dream of becoming a professional gamer and earning profit with gaming skills could eventually become very real and achievable for skilled players.

Cryptocurrencies and games have much in common, whether it comes to their past, present or future. Even though, realistically, becoming a millionaire just by playing video games will always be very difficult to achieve, it’s great to have opportunities to do what you love and get a little bit of (almost passive) income that way. If you’re very passionate about gaming and are already a skilled gamer, this is definitely a great way to earn some extra money while having fun!