Screenshot of in-game achievement: 'Congratulations! You Win!'

Implementing blockchain technology, play-to-earn (P2E) games compensate users for success on their respective platforms. This newer form of digital gaming became popular at the end of the 2010s. Since then, market data shows that this success is going to continue and pave the way for more opportunities. 

P2E games take many shapes. Some examples of these platforms include crypto casinos, role-playing games, and NFT games. They use in-game tokens or rewards that are convertible to real-world value with tangible assets. 

Continue reading to break down P2E games, how they function, and what the future holds for the industry. 

Understanding P2E Games

Play-to-Earn games are platforms that allow users to interact with the interface while having the opportunity to earn blockchain-based assets, such as Bitcoin and NFTs (non-fungible tokens). 

These games became conceivable due to the rise of cryptocurrencies in the early 2010s. However, the first P2E game called Cryptokitties gained popularity in 2017. Since then, other games have emerged and taken the gaming world by storm. 

The great appeal of P2E is that users can make real money off their gameplay. They can accrue digital currency on the platform. Also, users can sell these through alternative online marketplaces and acquire other tangible assets. 

How Do P2E Games Work?

Game developers try to create a satisfactory interface to encourage people to play. This means they oversee molding the platform’s currency structure. 

Most P2E games allow players to earn tokens or in-game currency as they achieve success or even as they refer other users. As mentioned, the beneficial aspect of these tokens is that they can often be traded outside of the platform for other assets. Users can acquire and maximize Bitcoin profits or other cryptocurrencies if they play their cards right.

The Advantages

There are several reasons why people interact with P2E games. The main attraction is that users can earn money while playing them. 

There is always some risk, of course, as the games typically require an initial investment. However, first-timers can develop their skills and eventually start making positive returns on their investment. 

P2E encourages positive engagement. Games with an interactive and enjoyable interface can attract interest and with that more investors. Typically, platforms with an immersive design are successful. As players have a positive experience, they are more likely to continually return to the game and invest their money. Additionally, this can lead to loyalty and better brand awareness

The Disadvantages

Getting started with a P2E game typically requires an entry cost. This initial investment helps fund the game and its developers. It is also a risk that gamers must take if they want to earn a profit. 

Some entry fees are high, creating a financial barrier between those who want to play the game and those who can. As a result, gamers who can pay some of the high-priced fees have an unfair advantage. 

Users always run the risk of losing money. This is another detriment that could turn people away. After investing money, gamers may experience more pressure to earn the contributions back and then some for a profit. Consequently, this burden could negatively affect user experience as the focus shifts from enjoyment to something much more competitive. 

A major concern regarding P2E is security. Cryptocurrency is still a relatively new asset. It does not require fees, but this is because there is a lack of regulation. Digital currencies, such as Bitcoin, are decentralized. No entity provides rules, limitations, or payments. Nevertheless, this poses a greater risk of hacks and unfair exchange practices.

Another disadvantage of P2E is the concern for scams. Hackers could gain access to user information and use it maliciously. Unfortunately, it is not uncommon for gamers to come across scam P2E platforms. 

Thieves develop these games so that interested players provide them with necessary data, including their bank accounts. Therefore, users interested in joining a P2E platform must vet their chosen game carefully.

How to Avoid Scam P2E Games

The best way to dodge scams is to identify games that are too good to be true. People hear this all the time, and while it provides no clear qualifications to avoid, it is probably the most beneficial aspect to consider. 

Investments that seem too good to be true are deals that involve high earning potential with little to no risk. 

Consider this example: an investment of less than $10 with a possible return of $2,000. This is a high profit for a low initial investment. Users should be skeptical of this offering as there is hardly any risk. 

If gamers are still unsure whether an offer is too good, they should do some more research. Looking up the game online can provide a better picture of others’ experiences with it. The internet can contain reviews and outlines about the developers. Having a solid understanding of the platform allows interested users to make safer investments and avoid scams. 

P2E Trends

Cryptocurrencies, especially Bitcoin, have consistently grown in popularity since their initial release. Similarly, P2E games that rely on these assets have also grown. Business Wire predicts that the industry is going to continue to trend and amass billions of dollars in growth. 

Experts believe that the advantages outweigh the disadvantages when it comes to this form of gameplay. The industry is going to generate more interest and more trust in crypto assets. As a result, with more interested parties using these games, the market becomes more competitive. Therefore, gamers can expect an enhanced experience. 

The Bottom Line

P2E games have become increasingly popular with gamers and cryptocurrency investors. Market predictions expect the industry to generate more revenue each year as time goes on. 

Even though many disadvantages risk the industry’s success, every benefit of P2E games is substantial and overshadows any doubts people may have. Nevertheless, interested users should beware of scams and offers that are too good.

Overall, play-to-earn games combine elements of improved technology and digital currencies to generate a user experience that is both rewarding and engaging. Data shows that their industry’s success is going to continue for the next several years.