There’s no doubt that Non-Fungible Tokens (NFTs) are all the rage right now. Many people see them as a way to revolutionize the gaming industry and create new possibilities for player interactions. However, a recent study has shown that gamers are actually more interested in earning Bitcoin than NFTs. Here’s why…
- Reason #1 – Bitcoin Has More Uses
Unlike NFTs, Bitcoin has a wide range of uses beyond gaming. It can be used to purchase goods and services, pay bills, etc. This makes it much more versatile than NFTs, which are mainly limited to the gaming world. Bitcoin has a higher probability to be useful as a monetary unit account. This means that earning Bitcoin while gaming has the potential to be more profitable than earning NFTs.
- Reason #2 – Bitcoin Is More Stable
Another reason why gamers are more interested in earning Bitcoin than NFTs is that it’s much more stable. The value of a single Bitcoin today may not be the same tomorrow, but it’s far more stable than NFTs. The value of an individual NFT can fluctuate wildly in a very short amount of time, making it difficult to predict its worth.
- Reason #3 – Bitcoin Is Easier To Trade
Bitcoin is also much easier to trade. It’s fungible. This means that it can be exchanged for other currencies and goods without any problem. On the other hand, NFTs are non-fungible, meaning each one is unique and can only be exchanged with the same type of NFT. This makes trading them much more difficult than Bitcoin.
Play-To-Earn Incentives Gameplay But The Reward Has To Be Desirable
Researchers from Zeebedee (Fintech Company) discovered that the majority of respondents (67%) are more likely to play free games if they offer crypto rewards. This is likely because being able to earn rewards for being immersed in a game that is enjoyable rather than working at a job is much more desirable. However, the reward itself must be desirable. Each person has their own way of valuing assets, but it’s clear that Bitcoin is more valuable to gamers than NFTs.
In my opinion, this is because Bitcoin simply has more value because it’s an asset that’s backed by energy. Proof of work (or hash rate) is required to mine Bitcoin and it’s much more difficult to come by than simply collecting NFTs. Gaming requires the trade of your work within a game, so earning a digital asset that corresponds to the energy of that work and has real-world value makes a lot of sense.
Freedom vs Status (Bitcoin vs NFTs)
27% of gamers would be happy if a game offered Bitcoin as a reward. In contrast, only 5% want NFTs as a reward. One speculation is that NFTs, although each individual one is unique, the creators of the game can create a lot of them, potentially leading to inflation. With Bitcoin, there is a finite amount and its value is based on scarcity rather than arbitrary rules set by a game developer.
To illustrate why this could be a problem, imagine that you ranked #1 for a gaming season, but the game developers decided to have a new season every 2 weeks rather than every 4 months.
Eventually, it wouldn’t be worth competing anymore because the rewards are so watered down. This would be like the value of a trophy for a specific competition during a specific time. It has no value beyond the personal recognition of achievement because gamers that buy the NFT would know they didn’t earn it. This is not an issue with Bitcoin, as it cannot be artificially inflated.
Bitcoin would be like earning prize money and trading that for more time to play and practice rather than work or fund the gamer lifestyle rather than being a status symbol. Although there’s value in owning status symbols, it seems like more people would opt for the freedom that Bitcoin brings. As sound money can be saved without being devalued due to inflation or manipulated by a central authority, labor can be stored over the long term.
Why Not Offer Both?
In the competition, earning trophies is great! But they don’t create the ability for participants to fully be engaged in the activity. Oftentimes, even the top contenders have to take on side jobs to maintain a living. Prize money helps participants to continue their activity without having to work at jobs they dislike just to continue with this pursuit. BTC can serve this role in digital competitions.
However, it’s the status symbol of being the ‘winner’ that motivates many to excel at that activity. It also unlocks experience and opportunities. Those parading a gold medal often gain more sponsorships and collaborations than those who don’t. They may even have easier access to events and clubs. As mentioned earlier, this can be likened with NFTs in the digital realm.
This is why offering both Bitcoin and NFTs would be an ideal solution. Each one plays a separate role in creating an industry that both satisfies the human need for resources to survive and the status that drives exciting competition. This duo will create interest within a game and growth in the entire GameFi economy.
In conclusion, it’s clear why gamers are more interested in earning Bitcoin than NFTs. Bitcoin has multiple uses, is more stable, and can be used to fund gaming expenses. NFTs are status symbols, but it is difficult for gamers to earn real-world value from them (beyond influencing sponsorships and other experiences). By offering both Bitcoin and NFTs, game developers can create a system that benefits everyone involved in the gaming industry.
For now, many DeFi games are only offering NFTs as a reward. With these new findings, developers may want to consider adding Bitcoin as a reward option for their games. This will create more opportunities for gamers and could help take the entire GameFi industry to the next level.