After years as a fringe token, cryptocurrency has officially become a coveted mainstream asset. In November 2021, an all-time high crypto market cap was even recorded at over $3 trillion. Although this has since dipped to just over $2 trillion, the fanfare around crypto hasn’t cooled down. In a clever response to public demand, some game developers and operators have introduced crypto gaming.
How Crypto Gaming Works
As its name implies crypto gaming makes use of cryptocurrencies to fuel in-game trading, the creation of player accounts, and game payouts. In some cases, crypto gaming is totally decentralized so that all digital assets acquired by players in-game become their property. On the other hand, some gaming sites merely use crypto as an alternative form of player capital.
Regardless of whether players opt to dabble in the former or the latter types of crypto gaming, the benefits are still similar. Most notably, this allows them to earn crypto, which is fast becoming a valuable asset diversifier, in a more fun and engaging way.
Play-to-Earn Games
One of the most popular forms of crypto gaming is the play-to-earn (P2E) format. In these games, players earn crypto by joining blockchain-based platforms that can earn you tokens. There are several P2E crypto games in existence today, but the main difference among them is that some are totally free while others require an investment first.
For instance, the free game Coin Hunt World (CHW) is similar to Pokémon Go in that it’s a geo-based “hunt” for Bitcoin or Ethereum. Meanwhile, Wolf Game is another crypto P2E that requires you to put up a token capital first. Once you’ve set this up, though, you can passively earn crypto with only minimal intervention.
All in all, the P2E model for crypto is proving highly successful with some players earning up to several thousand. The only downside of P2E gaming is that it relies heavily on a continuously growing and active player base. As blockchain developer James Bachini said in an interview with Markets Insider, once everyone decides to leave the platform, then the token collapses. Aside from this, there is the proliferation of bot-farmers which may taint the gaming experience of other players.
Crypto Poker
Among the early adopters of crypto are online poker sites. Although players don’t necessarily play to earn in the same passive manner as in games like Axie Infinity, online poker is one of the most popular ways to gain crypto online. As a matter of fact, according to the chief executive of Americas Card Room, the site has had to buy about $100 million worth of Bitcoin every month to keep up with demand.
To date, up to 60% of online poker transactions are reportedly being backed with cryptocurrency. This is yet another way that more people can begin dealing in crypto without actually trading it on exchanges. That said, crypto poker still faces barriers to widespread adoption. For starters, there are only a handful of states with legal online poker. To date, only Nevada, New Jersey, Pennsylvania, Michigan, and Delaware legally allow online poker sites to operate. While this has proven lucrative for these states, it has proven harder for top operators like WSOP since this limits their available market.
If more states were to legalize online poker, though, crypto poker player bases will surely swell and make crypto trading even more accessible.
Will Crypto Gaming Last?
Given that international industry titans, billionaires, and even governments are adopting crypto, it’s safe to say that the token’s value itself won’t be diminishing. This means that anyone hoping to have a crypto presence is likely going to see some returns—even if they’re modest. What’s really up in the air is whether specific crypto gaming platforms will continue to thrive.
Mostly powered by hype, if crypto gaming providers aren’t able to innovate, their users will be happy to switch to a new game. This is especially true among those who are more gamers than they are crypto enthusiasts. After all, with the introduction of more immersive and accessible options like cloud gaming, there is no shortage of opportunities for avid gamers. In these cases, while players aren’t earning, they are privy to more gaming titles.
In closing, while both gaming and crypto are likely to enjoy continued success over the years to come—whether combining them together is a good move will depend on the developers. If they can keep games fresh and their platforms competitive, then they’ll surely draw in more players to keep crypto gaming going.
