Although NFT games seem to be trending in the present gaming industry, investing your money in the NFT gaming industry might not be a good idea.

Aside from the fact that it doesn’t promise a guaranteed future, NFT games operate on the principle of win or lose like other traditional games. That is why playing NFT games can be a tricky investment. Unfortunately, that means there is no certainty you will profit from the money you invest in a play-to-earn game.
Is the boom in the nft games a step forward? Or has it come to contribute to social and environmental problems? Is it advisable to play NFT games? How do NFT games work? You will understand as you continue reading. This article will highlight some of the less-known factors that are warning alerts in the NFT play-to-earn game trend.

Facts that suggest NFT games could be a step backward

1.        The advent of NFT games has reduced the labor force

Over the past years, the number of younger folks in the labor force around the world has dropped dramatically due to the exposition of the new trend of making money while playing online play to earn games.

Naturally, most people prefer an alternative that will help them combine pleasure with work. So, when NFT play-to-earn games came into the picture, they couldn’t help but withdraw from conventional employment.

For instance, most young people between the ages of 14 – 28 in the Philippines have resigned from their formal jobs to resume playing games full-time. And, so, it has been in other developing countries around the world.

 2.        NFTs are not a perfect answer to cybersecurity

Aside from the play-to-earn model, one of the most enticing parts of the NFT game’s publicity is that gamers can have exclusive ownership of in-game assets. In addition, the non-fungible tokens are an excellent way to gain access to different crypto platforms and give streamers numerous opportunities to win rewards.

Yet, the NFTs have not been able to circumvent privacy for individual works of art, which is a warning sign to those eager to earn and store up in-game NFTs in the form of in-game tokens. Although game developers claim that the premise behind NFT games with a play-to-earn model is a natural evolution to cyber security, it hasn’t gotten so much power in the true sense.

Individual data for NFTs differs. As a result, each NFT character can have its unique value, contrary to cryptocurrencies like Bitcoin, Ethereum, Bitcoin, and the like. In some ways, that may look like a win for the NFT games market, where individuals can track and attach values to play to earn games, in-game bonuses, in-game currency, and other in-game assets. However, it can have more cons than pros.

3.        The Adoption of NFT games can affect the video games industry         

NFT games rely on the blockchain industry, which is resource-intensive. They draw much of natural resources to function appropriately, resulting in a shortage of resources.

The video game industry has adopted NFTs on a large scale, which could be a significant environmental drawback.

Traditionally, video games don’t run on electric power. So whether you want to play games on a PC, mobile phone, or Nintendo switch, you will need to power the device. Now that some popular NFT games are taking over, the blockchain industry has consumed more power supply for a while. That is why Phil Spencer made a seemingly negative comment even on free NFT games.

Blockchain technology is evolving, and its current phase is very speculative. But many people are ready to join the NFT gaming community. However, the big players in the video game industry, such as Xbox and PlayStation, have not joined the trend of modeling a crypto game. 

Yet, it is becoming evident that NFT games and other play-to-earn games that can fetch players some amount of in-game currency will be the leading option. And, if that forecast becomes a reality, the situation of shortage of electrical power supply could get out of hand.

4.        The sporadic nature of NFT games can affect the blockchain industry

Incredibly, the hype on some top NFT games is yet to circulate worldwide. Only some parts of the world are active subscribers of the NFT gaming community.

Traditional games are generally accepted evenly, and the pricing is always in the same range. That is because both bigger and smaller games are priced according to the measure of the content of each play-to-earn game, and they are usually affordable regardless of the diverse economic conditions around the world.

However, popular NFT games are usually tagged with wild prices. For example, imagine a game requiring players to make an initial investment of about $600 to buy in-game characters needed to start playing games and accrue in-game assets. That’s outrageous!

Based on comments of existing players of top NFT games, they feel exploited and manipulated as they can invest big and lose all the in-game assets at the end of the day. That could be a severe problem in the blockchain industry long run.

5.        Unfavourable Gaming system for smaller NFT creators

Using a system that prevents art or IP theft, the NFT game may have done that. While this might not negatively affect studios and titles, it could hurt smaller teams that could fall victim to similar practices. 

So, while Neopet NFTs might not be in danger of having their art stolen, smaller creators could still find that their original characters are being used for an online NFT marketplace they may not be associated with.

Fortunately, the silver lining to NFTs’ relationship with traditional video games is how big names seem to avoid them. A step further than Phil Spencer’s comments on them is the Steam ban on play-to-earn games featuring cryptocurrencies and best NFT rewards. 

While some view these as the future of play-to-earn games, they can come with a lot of baggage: NFT crypto games can harm the social environment and hold their real-world value, despite cryptocurrencies being digital.

The steps to cut away NFTs might be seen as dangerous in the future, but for now, it looks like a step on the right path.

Finally

Playing NFT games is fun and beneficial. However, most of the top NFT games feature some complexities in different game levels, making winning harder. Like traditional games, the higher your level in NFT games, the more challenging it gets. 

Hence, you must be a master to earn money with NFT games. Truthfully, a typical play-to-earn NFT game will cost you time and a huge initial investment before you can start to earn money.

Related: 10 Amazing Effects of NFT Games on the Global Financial Industry

Play-to-earn NFT games have been the leading option in the gaming industry since the breakthrough in the blockchain industry. Indeed, the online gaming world has been buzzing for video game enthusiasts.  Players can confidently play NFT games for more than 12 hours as if it’s a ‘free play.’

Although, NFT play-to-earn games are designed for more than pleasure.  With the advancement of digital technologies, the gaming community has evolved from a form of entertainment to a multibillion-dollar industry. Moreover, because of the nft games online play-to-earn model, many young people from different parts of the world have become professional gamers staying online to play games and win rewards.

Amazingly, some have quit their formal jobs to resume playing games for a living. Hence, as the financial industry can recognize the impacts of writers, game developers, artists, researchers, investors, and other professionals, NFT game players are the latest to show forth.

How does it feel to ask a young folk what he does for a living, and he responds, “I am a gamer, and I earn money? Does it sound strange? You may have to get familiar with the new vocation if it does. Indeed, NFT games are the most recent trend in the play to earn gaming community, and this hype has pushed the gaming community to newer heights.

So how do NFT games work?

NFT (Non-Fungible Token) games are a new breed of video games that uses blockchain technology to mint unique digital in-game assets, called non-fungible tokens or NFTs, representing in-game items, artworks, experiences, or even real-world and in-game assets.

Because NFTs work on blockchain technology, they offer numerous advantages. Firstly, NFTs cannot be destroyed or duplicated, which gives NFT games a level of prestige that is not available for traditional in-game assets.

Additionally, players can easily trade and sell in-game NFTs on secondary markets, allowing players to earn crypto rewards in an NFT game and cash out their in-game assets for real money. Without a doubt, playing NFT games can make people get rich and live in comfort.

10 Amazing Effects of NFT Games on the Global Financial Industry

It may sound far-fetched, but some popular NFT games have taken the world by storm and impacted the financial industry. Here are the ten astounding effects of NFT play to earn games in finance.

1.    It Is Bringing New Investors Into the NFT Market

One of the fantastic effects of NFT play to earn games is attracting a new class of investors into the crypto market. 

Young folks are making a budget for NFTs and in-game currency because they can trade or sell them and their unique digital scarcity, like another cryptocurrency. New investors often take risks more than traditional investor. And that is leading to a surge in NFT marketplaces.

2.      Development of New Products and Services.

The type of NFT games is leading when discussing developing new financial products and services. For example, some popular NFT games offer in-game items that gamers can use as collateral for big bank loans.

In addition, the birth of  NFT games has led to the rise of new investment aids, such as  enabling people to invest in NFTs and exposing new investors to the NFT marketplaces 

3.     Enable free Access to the Financial Marketplaces

NFT games make it possible for people to become active players in the financial markets.. It also allows people with internet connections to quickly buy, sell and invest in the best NFT games using digital wallets without going through any traditional channel.

4.     Increased Demand for Crypto

Now that NFT game players are earning crypto rewards in the game, the market value of the in-game currency has risen. One of the significant effects of NFT games is that it aids an immediate increase in crypto’s demand, making the NFT marketplace buzzing. 

Since NFT games are built in blockchain, players need cryptocurrencies such as Bitcoin and Ethereum to play and earn digital assets or in-game items. Thus, it has increased crypto prices as more subscribers want to take the money-making advantage of some top NFT games.

5.    High Competition for Money Lenders

With the ability to earn money in the form of in-game tokens or digital assets from NFT games, some people have shunned traditional investment forms because they can make a higher return by investing in NFT games. However, it became a headache for financial institutions like banks that rely on investments for income.

6.     Sudden Changes in Tax Laws

The popularity of NFT games has also led to sudden changes in tax laws worldwide. There are a few rules and regulations governing the taxation formula for NFTs, which cause people to be confused about how to declare their incomes from trades. But this could all change as governments struggle to catch up with the evolving world of crypto assets. 

7.     New Use Case for Blockchain Technology

The acceptance of in-game NFTs might cause financial institutions to adopt blockchain as it provides a more secure way to track the Ownership of assets like houses or shares and any transaction that surrounds it. 

8.     Rise of Interest in Online Gaming

Before the rise of in-game NFTs, people were playing online games for the fun of it. However, now that gamers can make money while catching fun, people are flocking into the gaming community, taking it as a real source of income. Meanwhile, that trend has led to more investment in online play to earn games and an uptick in the industry’s overall value.

9 .     Better Focus On User Experience

Most of the top NFT games come with an attractive user interface. Research shows no play-to-earn game is built without ultimate concern about user experience. What more can you expect from a crypto game designed for people to play and earn money?

NFT games are forcing everyone in the financial industry to focus more on user experience. Currently, most crypto wallets and exchanges have relatively unappealing user interfaces, which usually chase away newcomers. 

However, as people are giving more attention to crypto games, there is a snowballing demand for top-notch user interfaces in digital products.

10. Revolutionize Ownership

With NFT games, people are starting to see that Ownership is possible both in the digital and virtual worlds. 

Conclusion

Overall, NFT play-to-earn games have had surprising effects on the gaming industry and the financial sector as a whole. However, while NFT games are still early, their fullest potential and impact are unknown.  Only time will tell if these bubbles in the NFT marketplace are long-term, but for now, NFT games are here to stay with their in-game tokens.

We can expect to see more top NFT games with a play-to-earn model in the future and more NFT-based applications that we haven’t even thought of yet. So, it’s safe to say that playing NFT games is a way to acquire fortune at the moment, as the NFT marketplace is still flourishing. There are also a few free NFT games to play online if you can’t afford the initial investment to enter into the game mode.