Should you invest in blockchain-based games?

When the craze about digital currencies (virtual currencies) has not ended and shows no signs of ending, another new craze has emerged.

Yes, those are the games made on BlockChain platforms, and the most typical is the sale of game items, virtual items but with real value. So today, let's learn a little bit about this fever.

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#first. The sale of virtual items in the game is not new

In fact, for most of us (gamer brothers), it is not strange to buy and sell virtual items in the game. And the fact that in-game items are incredibly valuable is not new!

Let's go back to the time when the popular games like Vo Lam Truyen Ky, Thien Long Bat Bo, MU . you must have known about selling knives and armor in the game (with attributes. special) how high the price is right?

Even with accs with high-end furniture, it can cost up to billions of dong. The media has talked about this before.

Or most recently, games like Genshin Impact or League of Legends to have skins, or items, players have to spend hundreds of thousands or even millions of dong to be able to own them.

There are even Skins in the game League that can only be obtained in the form of luck, not sold at the store, these accs are for sale at not cheap prices. In short, buying and selling virtual items in general with real money and with high value is a normal thing, not a new thing anymore.

#2. The virtual items in the game on the Blockchain platform (NFT) are different

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If buying virtual items on regular games (traditional games) seems to be basically just to satisfy the passion and enjoyment of the buyer himself.

In the games on the BlockChain platform, it is exactly the opposite, it is like an investment, an expectation that the things they buy will increase in value compared to the beginning.

As you all know, a BlockChain game released will come with a corresponding digital currency, temporarily understanding it as a currency in the game, even the platform based on them.

A digital currency is born will bring growth expectations of the development team and investors.

Like many other digital currencies, when they were first launched, the purchase price of these virtual currencies was always at a very low threshold to attract buyers.

Then, over time (depending on a lot of factors, of course) these virtual currencies will have constant volatility (up or down). Depending on the development strategy as well as the ability of the game publisher.

Of course, in terms of people who bought or are planning to buy items with that currency, they will want it to increase.

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This is the problem, players will buy when they see the item is at a reasonable price. They will make their own judgments about the rarity and necessity of the item, and in addition, the expectation that the value of the common currency in the game will increase in price.

So that they can later sell to make a profit, even a lot of profit if they are lucky.

I take a simple example, a sword in the game is red in terms of game elements, this red sword is a rare item, the encounter rate is very low. Buyers will buy it for 1 bitcoin, for example.

Over time, this bitcoin appreciated by 10%, so even if the owner sold the sword for the same price of 1 bitcoin, they would still make at least a 10% profit.

But add to that the rarity of the red sword that can push the price up not 1 bitcoin, but maybe 2, 3 even 5 or 6 bitcoins. Thus, players will get a huge amount of profit.

=> This is the biggest attraction of blockchain-based games.

#3. Player's expectations

If buying and selling items in a Blockchain game is like an investment, most of what investors rely on is just an expectation.

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If with stocks, we also have announcements about the company's annual business plan, or get sideline information about investments, policies, personnel. Thereby there are personal plans and we can analyze and evaluate.

But with the virtual items in the game BlockChain, that is not the case, it also depends on the things that affect the digital currency in general.

For example, the acquisition of sharks, the fomo (buying at a high price according to the trend) of the investors, or simply the game development team suddenly disappeared without a trace (this is almost as unlikely to happen with a listed company).

All in all, this is a risky market, with a lot of things that you can't, let alone be sure of. The risk of losing everything is obvious if you are not careful (and don't know how to be careful in this market).

So my sincere advice is to use your idle money (that is, the money you have not used) to invest in the things you know best and invest in things that are transparent and have clear legality. , have legal protection.

Never use hard earned (or borrowed) coins to invest in them.

The decision is yours, so you are responsible for your own decisions. If you win, you enjoy, if you lose, don't blame yourself and don't let the people around you be affected.

Those are my analysis as well as my perspective on the current BlockChain platform games, hopefully it has given you a basic view of this new cryptocurrency market. Good luck with your wise choices!

Jessica Tanner

Update 02 November 2021