Pros and Cons of the Play to Earn Gaming Model

The play-to-earn (P2E) model on games is the platform where the gamers can get entertainment and massive income consistently. They play the game and earn cryptocurrency by accomplishing different platform tasks. For instance, depending on the game, the player may need to win a conquest or breed a particular gaming character for the rewards. Meanwhile, the rewards are in crypto form or non-fungible tokens (NFT). 

After the player earns the reward, he may decide to sell them on the typical marketplace or convert them into fiat or real-world money. This play to earn gaming model has also steadily increased in popularity just as the Metaverse games keep increasing in number. Moreover, substantial gaming companies have also joined the bandwagon by developing and modifying traditional games into these profit-driven investments. As it is, this new gaming model can become a go-to choice.

Moreover, users can also farm more crypto coins or even collect these valuables, even NFTs, within the game. Acquiring these valuables is not only a virtual wealth; it is worth massive money in the real world. And as a new gaming development, it also comes with fascinating pros (advantages) and cons (disadvantages) for a balanced argument of choice. Considering this model, each person can decide if they want to explore further or not.

Pros of the Play-to-earn model of video games 

Below are some of the top benefits and advantages of playing video games based on the P2E model.

  1. Earn real money

The best that the pay-to-win gaming model can give is virtual wealth or acquisition that means nothing in the real world. But the invention of play-to-earn games brought the wildest dreams to reality by making it possible to rake in income. Before this time, the gamers could only stream and sell the rare collectibles they acquired from the game. Moreover, these assets can also be costly to acquire at each level.

The sold items by the gamers can only be valuable within the game and nothing more. The story is different from the play-to-earn gaming model, where the players can collect these digital assets and sell them for real cash. The games themselves are based on blockchain technology and allow for many things. In addition, using crypto coins or non-fungible tokens is the benefit that anyone could wish for within this game. Players can sell to each other or trade in the marketplace.

  1. Loyalty

The loyalty level of the play-to-earn games model is another huge opportunity to create a loyal community of game lovers. Building these communities on such a secure technology also benefits all the players and stakeholders. In addition, the benefits are not just in terms of entertainment but now in terms of tremendous income from the robust gaming communities. An example of such a rich system is the Axie Infinity, which is worth $2.9 billion.

Pros and Cons of the Play to Earn Gaming Model
  1. Creating value

The game players on the play-to-earn model for games create value for themselves and do the same for the game as a whole. The value ensures the entire gaming economy can increase in value. On the other hand, the game developers can also make a profit. For example, while the players acquire assets and work on selling or trading them on the marketplace, it can mean an income for developers. The game developer can also earn from every trade player’s exchange on the platform while translating them from crypto value to real-world value. 

Cons of Play-to-earn model of games

We can spend the whole day speaking about the pros of play-to-earn games, but it will be imbalanced without mentioning a few cons. Find some of these not-so-good attributes of the play-to-earn games model.

  1. High cost of entry

While there are plenty of free-to-play play-to-earn games, there is a high cost of entry for the ones that require it. At times, the cost may not be a direct payment; it may be just an acquisition of essential game assets. At the same time, the high cost of entry to these games is a significant disadvantage for the P2E model. Therefore, before the players can even start with the game, they will need to part away with a sizeable amount of money to invest in it. On the other hand, the payment may be in NFTs, which can range from hundreds or thousands of AUD. The needed investment may not even be a simple one but a multiple unique NFT as payment. 

Pros and Cons of the Play to Earn Gaming Model
  1. Loss of Money

As with every investment, the risk of losing your investment is also a huge possibility. Of course, this experience is nothing different from one investor to another; instead, one must take calculated risks. Meanwhile, the P2E modeled games can vary in cost from one game to another. At times, the players can also try to recoup the money they spend on the game with several things that can hinder them.

On the other hand, the players’ expertise may not even be as good as making earnings from this game. At the same time, the initial returns or earnings will also be able to cover every initial expense that a player must have made. Besides, there are also limitations on how the player can earn such income from the time spent. Axie Infinity is a crucial game on this model to try, and players can earn from completing quests or conquering battles. 

  1. Lack of Infrastructure

Blockchain technology is relatively new and can also disadvantage the P2E model. One reason is the doubt or reservation that some people already have about it simply because it is relatively new. It can also be a farfetched option with the different variations in the prices of various crypto coins. But the more one learns about the cryptocurrency space, the fewer fears you are likely to have. In other words, skepticism has always been a question of ignorance.

Conclusion

On a final note, after considering the three advantages and disadvantages of the play-to-earn games model, the choice is yours. Each potential player now has a decision to align with this model. You can also look ahead to maximizing the advantages and managing the shortcomings. 

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