GameFi is Driving Mass Crypto Adoption
GameFi, a new era of games where you play to earn is on rampage. It is attracting thousands of participants through its platforms and driving mass crypto adoption. Blockchain based gaming offers players financial or economic rewards by completing in-game tasks. These rewards can be crypto assets too which are traded on secondary markets for monetary rewards.
The rewards range from NFTs, Governance tokens, virtual land, avatars, virtual accessories etc. Crypto is a complex world which sometimes makes it difficult for beginners to enter into. The barriers can be formidable especially for those new to crypto. Data suggests that most of the general population is on the sidelines and are not reaping the benefits of crypto. However, with the rise of GameFi, crypto adoption has increased steadily.
Blockchain based Gaming will increase crypto adoption
GameFi is growing at a fast pace. According to Triple A, gaming industry have 320 million crypto owners in 2020 and the revenue generated was US $321 million. In the millennial owners only 5% owned crypto however 55% of millennial gamers owned crypto. The gaming market is projected to grow to $349 billion by 2027.
GameFi can make crypto easier to access and interesting world to enter through virtual world of games. They also have a social community which is sometimes very hard knit and it is beneficial for crypto growth. Moreover, the USP of blockchain gaming is FUN. You enjoy play games, interact with fellow gamers and build-up your portfolio with gaming rewards. Whereas DeFi is a complex world and the platforms to enter them is also intricate.
The simple, interactive, fun part of games attract millennials into the complex world of crypto through rewards, benefits etc. Games simply place tasks, engage competitions or battles to engage participants. By setting it like this, they simply educate gamers on the nuances of DeFi and give a sneak peek into the world of possibilities. Hence GameFi is driving mass crypto adoption.
Barrier to GameFi
One of the barriers to entry into GameFi is high entry costs. Free to Play models are being incorporated into blockchain gaming to make it more accessible. The idea is to generate interests in accessible and scalable blockchains thereby increasing crypto adoption. These F2P models generate interest and encourage players to migrate to P2E models.
The future is of GameFi. Blockchain based gaming has revolutionized gaming industry. According to the 2021 Blockchain Game Alliance (BGA)’s Blockchain Game Report, Venture Capitalists invested over US$4 billion in blockchain-based games and infrastructure in the year, 5000% higher than in 2020.
GameFi liberates users from DeFi stress
DeFi comes with complexities and technical jargons. The entry is difficult due to complicated transactions and hard to grab technicalities. Blockchain gaming liberates users from the usual DeFi stress. The users can get all the benefits of DeFi through playing games, competing with other players and crossing milestones.
We have seen recent developments where gamers are building strategies by acquiring assets and earning income through them. Something like a blockchain version of Monopoly. Players are on the journey to build assets and earn through them.
DeFi is on its own path, revolutionizing finance industry. However, GameFi has the potential to achieve mass crypto adoption. Thousands of gamers are using this platform to make their first foray into crypto world.
