For the longest time, traditional finance was pretty much consistent and the same everywhere. You worked for your money and kept it in a bank. Others take out loans, and the stock market still remains. Eventually, online banking emerged, making things more standardized. But then, crypto took the world by storm.
Since its introduction, cryptocurrency has grown into more than just digital money. These ever-popular virtual currencies are now being used as the backbone for various other digital assets. Along with these comes new ways to earn these digital assets, like GameFi.
Keep reading for a more in-depth look at how GameFi is contributing toward the change in finance across the globe.
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What Is GameFi?
Hardcore gamers everywhere have long been trying to turn their hobby into a legitimate source of income. There have indeed been cases of success, especially since competitions and esports have been around. It’s even possible to earn in-game items or achievements and trade them for real-world money. However, many gamers still have to rely on other sources of income to survive.
GameFi is a term used to describe play-to-earn games on a blockchain. In other words, players are offered crypto-related rewards as an incentive to play these games. Rewards are usually in the form of actual cryptocurrency or non-fungible tokens (NFTs). If you’re interested in learning more, you can check this out for a more detailed explanation of how this concept works in practice.
The difference between GameFi and traditional gaming is that there’s the potential to earn something that has a definite real-world value here. Yes, gamers have been able to sell in-game items before, but this is different. These new play-to-earn games give players the opportunity to earn an asset that has some form of quantitative value that can fluctuate with the market. Some games even offer metaverse-related assets.
How GameFi Ties Into The Metaverse
The metaverse is essentially a mesh of various online 3D virtual platforms, all interconnected. The theory behind this is to create a virtual space where people can work, game, and socialize. While the concept hasn’t been fully realized yet, there are parts of what people consider the metaverse that already exist. People are putting in time and money to invest in this virtual space.
Cryptocurrency is the primary medium for obtaining metaverse-related assets. But as you know, GameFi platforms are becoming another way to get hold of these assets. This effectively results in a method of earning such digital assets without having to buy or trade for them with cryptocurrencies.
At the end of it all, the metaverse is gradually turning into a new virtual world. A virtual space where people can earn assets that convert to real-world money.
GameFi Makes Room For Big Changes
That may be a bold statement, but you’ll likely agree if you think about it. GameFi might sound like a mostly unheard-of thing right now. But it’s steadily growing, attracting both gamers and cryptocurrency investors from all over the world.
The metaverse can’t be ignored here, as it’s one of the most significant factors when talking about GameFi. Fundamentally, it will create a new virtual economy alongside the already-existing physical economy. This paves the way for new industries, jobs, and opportunities across various fields. For example, there will be people who want to contribute to developing this space, as well as companies and individuals looking to build their presence in it.
So, pay-to-earn games provide a means of entering the world of digital currencies and assets. Most people use traditional finance to buy their way in, which typically involves buying cryptocurrency. They are then buying NFTs and other digital assets with crypto or doing general crypto trading. GameFi is essentially turning into the alternate entranceway to this new sector.
Gaming Is The New Way To Earn Money
When you put everything into perspective, the growth of GameFi is opening up doors to wider financial inclusion. As it stands, the gaming industry is already massive, generating hundreds of billions in revenue each year, from around three billion gamers worldwide. The pay-to-earn genre will almost certainly rise in popularity because who wouldn’t want to earn money by playing a game?
Consequently, more people enter the world of crypto and the metaverse. As more people become involved, the virtual economy grows. And when the virtual economy grows, the overall global economy has a chance to grow with it.
GameFi is turning one of the world’s most popular hobbies into a viable source of income. It continues to boom, contributing to the growth of a virtual economy. In the future, play-to-earn gaming will become more popular and continue to fuel the growth of metaverses, with players winning crypto-based prizes from in-game achievements. In short, GameFi changes lives, allowing people to earn assets that grant them financial stability.