Crypto games, which enable you to earn cryptocurrency as you play and convert it into your local currency via a crypto exchange, are known to everyone who has heard of the cryptocurrency world. We are developing a gaming community where you can use NFTs to play games and earn cryptocurrency.
Join us on the journey as we analyse the key questions that arise when we hear how to earn crypto through video games and then convert it into the local currency we want to spend.
What is crypto?
Crypto, commonly referred to as cryptocurrency, is a form of digital (or virtual) money that is secured and encrypted using cryptographic techniques, thus the name. This makes it nearly hard to forge new cryptocurrency or reuse old cryptocurrency. A single transaction (such as when you spend or transmit your cryptocurrency) is supposed to be recorded on all of the ledgers linked to the network since many cryptocurrencies function on decentralized networks and are based on so-called blockchain technology (which in this case is each computer or smart device). Being decentralized, or not being controlled by a single nation or organization, is one of the key characteristics of cryptos. As a result, governments cannot potentially manipulate or meddle with them.
A significant benefit of the technology is that transactions may be completed more quickly, more affordably, and without interruption in the event that one component fails (as centralised systems so often do). Extreme price sensitivity (volatility), high energy needs, and supposed anonymity (which is untrue) are drawbacks that make it appealing to criminal organizations.
Isn’t that bitcoin?
No. While bitcoin (BTC) is indeed the largest and most famous cryptocurrency, it is far from the only one: there are thousands of cryptos other than bitcoin, such as Ethereum (ETH), Solana (SOL), Polygon (MATIC), to name just the most important ones for crypto games, but there is also Decentraland (MANA), Cardano (ADA), or meme (some would say shit) coins such as Doge (DOGE) or Shiba Inu (SHIB).
What is a crypto game?
A crypto game is a game using the crypto technology explained briefly above. Crypto games are different from traditional video games in that they are based on so-called non-fungible tokens (NFT) and that you can earn crypto income from playing them. In most cases, you have to buy these NFTs, which is why it is more difficult to start playing these games than their traditional counterparts.
What is NFT?
The NFT is a digital gadget that is absolutely unique and cannot be replaced by anything else. This ensures that nobody other in the cryptocurrency game may use a karat, figure, weapon, or anything else similar to you. However, you can also tokenize artwork or memes to make them unique by placing them on a blockchain. NFTs are built on a previously established crypto technology (often Ethereum or Solana), making it appealing to criminal organizations. As a result, as some crypto games gain popularity, the prices of the underlying cryptocurrencies may likewise rise.
I pay to play, win and make money, isn’t that pay to win?
No, you don’t pay to win here, at least not directly. You pay to get into the game (buy NFT), then it’s up to you and your skill how you perform, how much you win (and occasionally how much cryptocurrency you win). Of course, here again, you might have better chances if you pay more, but the two are not directly proportional (and game developers would like to avoid that).
Why is it worth it for me?
It’s only worth it if you enjoy the game. You won’t succeed if you play just for financial gain. Money wise, if you are skilled enough and successful enough, you can eventually recover your investment. Alternatively, if you find a scholarship program (which will lend you the NFTs you need to play in exchange for a share of the cryptocurrency money you generate), you don’t even need to invest any money—just your time.
Scholarship? What is that?
There are so-called guilds, which play together, helping each other and representing more power to the outside world. We are one of these crypto game Guilds (AEY Metaverse Guild, or AMG DAO), that start so-called scholarship programs, where we lend you the tools you need to play, you follow certain rules, and in the end, you give us 30% of the money in exchange for the rental (you keep 70%). Think of it as if you didn’t have the money to open your own carpentry shop, but someone lent you a saw, a nail and a hammer and asked for a share of your earnings.
Why is it worth it for the game developer?
For the same reason that makes it worthwhile for other game developers: the more people who play the game, the more money the company makes, with the crypto prizes being paid back out of profits.
Are you sure that this is legal?
Absolutely, it’s the same crypto income as if you were mining Bitcoins or trading cryptocurrencies and making a profit. Of course, it’s up to you to declare this income in your tax return at the end of the year (we strongly recommend this).
Isn’t it a ponzi scheme?
No. A feature of ponzi scheme is that you have to pay a certain entry fee, which is used to pay members who have already entered. Here you can quit at any time, sell your assets, and if you participate in a scholarship program, you play for free, so none of the conditions of the ponzi scheme are met.
Why is this good for you?
For us, this is good because the bigger the community, the better conditions we can offer our scholars: you can play multiple games for free, we can shape the game with your feedback, and of course we are an economic force, building a valuable company.
Of course you can do this, and it’s true that you’ll keep 100% instead of 70%, but before you do, consider how many crypto games have experienced a decline in value and the possibility that no one will reimburse you for your investment. In exchange for giving up 30% of your earnings if you join the guild, you frequently have no risk, and the guild will also pay for any necessary character replacements (such as nerfs), saving you the hassle of having to sell your old gear and buy new.
How much can you earn?
It depends. The biggest crypto game at the moment is Axie Infinity, where you get so-called SLP or AXS in exchange for playing. The SLP has been 40 cents (dollars), 20 cents, 3 cents, so it is currently incalculable, but the AXS reward increases significantly in proportion to your ranking. It could be several hundred dollars as well.
I have heard that it is very polluting
The mining of cryptocurrencies and the whole blockchain technology does indeed have a big impact on the environment, but no more than fast fashion brands (e.g. Inditex Group), movie streaming (e.g. Netflix) or pseudo-farming. The last year has seen huge advances in the sector.
I heard that this is the reason why the neighbour Andie does not have a new NVidia GeForce video card 🙁
It’s a common misconception: there is no video card because the coronavirus has transformed global supply chains. Today, not only video cards need chips, but also e.g. electric and self-driving cars, mobile phones, smart devices, and this has created more (and newer) competition in the market, making it harder for some players to get access to chips. All industries are suffering from this, not just GPUs.
However, Ethereum’s changes have significantly freed up video cards.
I don’t understand this game, can you help me?
Of course we can help. We’ll provide everyone with the materials they need to learn, and we’ll also have trainers available to help you push the game along as you learn.
I don’t like xyz game, is there another one in your collection?
Our repertoire has grown significantly over the past year and we now have more than 40 games to play, with plenty of help and assistance to get you started.
We at AMG DAO are currently working hard on educating our players and building web3 tools to make sure players we bring into the games are there to enjoy themselves first, earn tokens second and potentially reinvest. We are well positioned in the Central-Eastern European region, where our players are not looking to live off of playing games on a monthly basis, but are looking for ways to build their portfolio and reinvest in a safe and sustainable way.
AMG is a decentralized autonomous organization, bridging the gap between players and web3 game developers, bringin the next billion users into the metaverse.
AMG acquires non-fungible tokens (NFTs) used in blockchain-based games and acts as a trusted party advocating for games in the metaverse, thus bringing more people in.
We are leveraging strong partnerships with games developers and Yield Guild Games to launch our organization to the forefront of the Central/Eastern European gaming market.
AMG DAO has been building a game focused crypto wallet, guild management and other tools to keep contributing to the ecosystem, in order to aid the creation of games with sustainable economies.
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