A few days ago, I wrote an article about determining what kind of crypto investor you are before putting tons of money into the market. The main point was that it's great to know the market, but you really need a personal investment philosophy to drown out the wall of noise that will otherwise blanket you, divert your time investment and eventually bankrupt you.
I somehow forgot to include one of the most important distinctions of investor. This is double embarrassing because I myself fall into this category — the gamer! The rise of NFTs is opening up a brand new world of custodial value within gaming. This is actually the subsection of crypto I'm most excited about. Imagine adding value to a global democratic financial structure as a participant in a fun virtual world. I'm in!
Although I am a gamer, my gaming experience doesn't naturally lend itself to the kinds of games that are leading the charge in the initial wave of blockchain gaming. If you are an RPG or MMORPG player, you definitely have a leg up on the competition. Me, I'm more late 90s arcade 2.5D beat up ups like Final Fight or Streets of Rage. If I get my way in this world, I'll be investing in and developing a game like this for the blockchain where participants can take control of the heroes, enemy army or NPCs and help to direct a unique game experience on every playthrough. Imagine creating an NPC for a world that can generate a unique answer to the hero's question in each new instance. You can be a huge liar that sends the hero on a goose chase or provides a fake item that breaks during combat!
If you want to play the first wave of blockchain games without going bankrupt, you must learn the structure of these games. They most resemble RPGs. You will either invest money or time into character creation with the difference being that smart traders can buy assets within the game on an open market that may include non-players. This opens up possibilities for players with less funds to accumulate more assets by waiting on market dumps, an interesting twist in the otherwise closed world of MMORPG gaming.
Hint: If you don't have a lot of money for these games initially, brush up on your trading skills. Play the open market and the game at the same time to catch up with pay-to-win whales.
Picking Your Game
The games that I am watching have yet to go live, but I am leery of the fees that will be associated with them. The Ethereum network does not lend itself naturally to games with high contract interaction. I certainly hope that game designers are aware that bad design can cause players to spend more money on fees and less on the game.
Unfortunately, the games that I pick will have to consider the design of the game against the smart contract if the game is on the Ethereum network. This will probably limit the games that I can participate in — actually, it already has.
Protip: Stay away from games on the Ethereum network. If you think you are paying ridiculous fees just to trade coins, imagine all of the contract interactions it will take to play a game. Don't make the same mistake I did with Aavegotchi. Seems like a great game potentially, but it took me around US $50 in fees just to redeem the f*****ng raffle tickets I mined from staking thousands of dollars for weeks. For a RAFFLE mind you, not an item! I might not even get the wearables! I'm going to focus on the BSC launch of Axie Infinity specifically because it's on BSC.
Bottom line: As with any investment on Ethereum, be prepared to go in big and early. If you try to DCA your way in with low capital, you'll end up eating away your investment with fees.
In my initial research with games like Axie Infinity, you shouldn't expect to get rich quick. The time for ROI seems about the same as investing in a profit sharing casino like Betfury. You're going to lose your initial investment and face drawdown. However, you'll get your money back (barring technical flaws and scams) in about 180 days.
This 180 day ROI assumes that you are putting some significant measure of time into the game — anywhere from 4 to 6 hours per day depending on how good you are. If you can buy some assets on the open market during a dip, you may shorten your timeframe slightly. If you get lucky and buy a piece of virtual land or breed an NFT with outsized value on the open market, good for you. Don't count on this, however. You'll also need to watch the markets to take advantage of these anomalies. The economic cost of this time spent surveying Opensea to sell your NFT will likely eat substantially into your profits. Bottom line — don't expect profit without putting your time in.