Compared to traditional gaming, Blockchain gaming is reshaping the whole gaming sector. Despite the fuss gamers worldwide are making about overall security issues and risks of losing money, nobody genuinely loses interest in playing the Blockchain games because they are nerve-wracking, and you can obtain things with real-world worth.
Therefore, even though we’ve warned you that you could lose money, you might still want to play. Thus, before you hit the PLAY button on a Blockchain Game, read this article to know the potential risk factors you may face. Before moving on to the risk factors, let’s discuss the monetization process of blockchain games.
How Do Games Built on the Blockchain Make Money?
One of the most noticeable methods of making money that is unique to this game is the use of NFTs. Non-fungible tokens contain one-of-a-kind features and have practical utility. These tokens can be taken out of the game and sold in real life. Players become investors who can profit from the rising popularity of NFTs by buying and selling valuable tokens, which in turn benefits game developers.
For instance, in Axie Infinity, players can invest in playable characters known as Axies, raise their levels, and then resell them for a profit. Furthermore, by battling with their Axies, players may earn Ethereum-based tokens such as AXS and SLP.
Advertisements within games are another common source of income for the industry. Ads are a major source of frustration for players, and figuring out how to mitigate their impact is a top priority for all gaming companies. That’s where Blockchain technology comes in handy. They can participate in activities like advertising videos and paid surveys. A user can earn some cryptos by watching a video until the end or by completing a survey.
What Are the Risk Factors of Playing Blockchain Games?
Not only is the gaming experience enhanced with the crypto games, but the market of Blockchain games is also growing so rapidly that it will hit from $4.6 billion in 2022 to $65.7 billion by 2027. Investments in Blockchain-based video games are rising, which is a significant factor in the industry’s meteoric expansion. Gamers all around the world are now exposed to a diverse variety of games in the Blockchain games list, which is enough to fuel their interest in a gaming experience that differs from the usual.
A concern that naturally emerges in light of the opportunity to profit from playing or investing in Blockchain games is whether or not it is possible to sustain a financial loss. Should one put money into them, or are these games just another scam? To find the answers to these questions, you must first comprehend the risks associated with this rising potential.
Volatility Risk
Losing money due to volatility is similar to losing it due to a malicious attack. Crypto game tokens can see the same wild price swings as other cryptocurrencies. But there may be limits on how often you can cash out tokens from some games. This means that users might lack time to sell and recover when a blockchain gaming coin such as AXS suddenly drops in value.
Loss of Non-fungible Tokens (NFTs)
The next gaming revolution is Web3 Gaming, which includes NFTs and cryptocurrencies created using emerging technology. Compared to cryptos, this presents an even greater risk for crypto games. It is risky because operators using NFT are not required to follow certain standards, such as anti-money laundering, raising the possibility of fraud.
A user may easily fall for a scam or attempt to transfer NFTs to an unsupported wallet. The creator of the cryptocurrency game Hedgie claimed in July that he had been defrauded in NFTs of over $1 million. Comparable to this, the Ronin blockchain, which powers Axie Infinity, was attacked and had over $600 million of its money stolen.
Every Game is Not Profitable
Certain Blockchain games are not profitable at all, while others are only somewhat profitable. For example, on 0xuniverse, earning the money you invested back just a few days after starting playing is relatively easy. In contrast, on Metrocryptopolis, it might take more than a year to earn back the initial investment. The problem is that there may not be sufficient interest among individuals for them to play it for even over a year.
Access Restrictions
Accessibility issues in Cryptogaming can have a greater bearing on certain games than on others. For instance, in order to participate in Axie Infinity, players need to own a total of three axes. The cheapest Axies are roughly $100, which means consumers must invest at least $300 before they can begin to make money.
A typical player would be scared off by such a large financial commitment, given that the majority of conventional games don’t cost more than one hundred dollars.
Complex System
Every crypto game is based on a specific Blockchain system. The system itself is a complex part. Most crypto games require registration before you can begin playing. After that, you’ll need to create one cryptocurrency wallet and purchase some cryptocurrency, the amounts of which may vary depending on the Blockchain and the wallet the system employs.
For instance, you could have to purchase ETH if the game is built on the Ethereum network. You’ll need to purchase some BNB if Binance Smart Chain is involved. Hence, account takeover, Identity theft, spyware, or data breaches can hack your Blockchain account. A security case study has shown that there are still plenty of loopholes while playing Blockchain games.
Not All Games are Handy
Not all games are user-friendly. For example, having a crypto casino hobby can help you make money. However, Gamers also despise network congestion and game lag. Regrettably, this occasionally occurs in well-known games that use Ethereum.
Due to its scalability issues, low throughput (about 13–15 transactions per second), and high transaction fees, this blockchain is infamous. Ethereum is inappropriate for use on a broad scale due to these drawbacks.
Conclusion
Try playing more profitable games than traditional ones. There will always be a potential payoff when taking a risk. The introduction of blockchain technology into crypto gaming alters the centralization mechanism of the games themselves, even though risks are present.
As a result, players can transfer their rewards and items between different blockchain games. It’s why they’re worth anything at all, and once they get a significant player base, that worth can start to circulate via trading collectibles, the value of which can be based on how scarce they are.