In 2021, the market capitalization of P2E games reached $755 million. According to experts, in the next 5-7 years this figure will grow to $2.9 billion, which is about 300%. In absolute terms, this is not that much, especially when compared to the much more impressive video game market, which is approaching $195 billion. However, this segment is growing much more slowly, which gives reason for optimistic forecasts about the future of P2E games.
What is Play-to-Earn (P2E)
Play-to-Earn (P2E) is a group of games with built-in earning tools. All of them are based on the blockchain. The technology ensures the protection of each player’s data and makes it possible to monetize virtual objects. This possibility is achieved by integrating functionality for interacting with non-fungible tokens.
This format is convenient for the game industry, since you can wrap anything in it: game characters, awards, virtual objects and structures – and so on ad infinitum. A logical next step in the development of the ecosystem is the opening of its own NFT marketplace, which many blockchain games do.
Earnings on games involve payments in cryptocurrency and often they are credited in the native tokens of the project. For tokens, you can buy new game items or withdraw them from the platform and exchange them for stablecoins, XDC vs HBAR.
How it works
To enter the game and start earning, you first need to invest in the project by buying a certain minimum set of game items. For example, in STEPN this is a pair of virtual sneakers that are available on the OpenSea NFT marketplace.
Then the item must be activated in accordance with the game algorithm and tasks must be completed regularly. For the performance of the task, remuneration is accrued in accordance with the achieved indicators. The received tokens can be spent either on improving your inventory, or withdrawn and converted into another currency.
How much can you earn in crypto games
The level of income varies greatly and depends on many factors. Usually early investors get the maximum return. Expert opinions vary greatly. Some are sure that P2E can bring from several tens to several thousand dollars a month, subject to a competent choice of the project and a well-thought-out strategy. However, there are people who are sure that most blockchain games are just scams. However, both sides are partly right.
Is P2E a good investment?
Let’s start with the fact that any popular games fade relatively quickly. This has always been the case, and blockchain games are no exception. Such projects often have a bright start, as happened with STEPN, which became very popular at the beginning of 2022. The influx of users provoked a drop in the profitability of the game, and in its mechanics there are signs of a financial pyramid.
The segment itself is still too young to be at least minimally predictable. The first project of this type is considered to be the defunct Huntercoin, which was launched in 2014. It was designed for only a year, but lasted until 2018 and was eventually closed.
Play-to-earn is not yet regulated at all. It is quite natural that this segment attracts a huge number of adventurers. Before investing in P2E, learn as much as possible about all the available information about its creators and the mechanics of the game itself.
A minus times a minus gives a plus only in certain operations of mathematics. This does not work in investing. The typical risks of investing USD to ETC and other, initially more applied cryptocurrencies, will be supplemented by risks associated with the specifics of the life cycle of game projects. P2E can indeed be profitable, but it is extremely risky to consider them as a long-term investment tool.
When deciding to invest in cryptocurrencies, do not risk more than you can to lose and never use borrowed funds for this purpose.