During the past few months or so, I have been getting into a online mining simulator P2E game called Rollercoin. My opinions on the game has changed over the past few years to a more optimistic viewpoint. Recently, however, after doing a little bit of research about Rollercoin, I realized that it might be a ponzi pyramid scheme.

Introduction:

Rollercoin is as I said, a online mining simulator game. You can get "miners" for RLT (Their in-game currency) by buying it with cryptocurrency. The miners, in exchange, will grant you with power and with it, you can contribute to a coin's respective pool to earn cryptocurrency. On the surface, this seems like a normal crypto game, but my recent discoveries might be disturbing.

Evidence 1 - Income:

Rollercoin's only sources of income is people buying RLT or season passes. This means in order to survive, Rollercoin requires quite a bit of continuous investment and new players. Unfortunately, however, the "whales" of Rollercoin do not at re-invest into the game, as they can just simply mine RLT using their massive amounts of power. In terms of new players, not many of them choose to buy new miners or if they do, they never buy more RLT. Furthermore, the marketplace update made it worse. In the marketplace, you can buy/sell miners or parts peer to peer and not directly off of Rollercoin. This means that no new cash is flowing into Rollercoin and rather, it is just stuck circulating among the players. If this continues, I'm afraid that Rollercoin will one day have to shut down their operations.

Evidence 2 - Loss of earnings:

Rollercoin obviously grew during the past year and with it, more power came into circulation. This means that your current mining power is netting less and less crypto every day. Due to this, new players are required to invest more and more to get into Rollercoin. Eventually, new players will decide that investing into Rollercoin is no longer profitable or worth it and decide to not get into the game. 

My Theory:

With these two pieces of evidence, I believe that this "bubble" called Rollercoin will pop in the next few years. Here is my timeline:

1: The loss of earnings will continue to get worse as more power enters the pool, thus making it unappealing to new investors. This will cut Rollercoin's main source of income over time.

2: Since Rollercoin's main source of income is gone, they will start cutting down mining rewards.

3: Old players will no longer invest and begin withdrawing from rollercoin in large amounts.

4: Eventually, Rollercoin will no longer be able to back their up their game and eventually, die out.