The latest technological advancement that introduced us to Blockchain technology has impacted many industries including the gaming industry. In the past couple of years, it has been proven that cryptocurrencies and gaming are a successful combination, where players get to play their favorite games and earn money at the same time.
This is where the concept of play-to-earn games was born. Nowadays, there are plenty of crypto games that are actually quite popular. These types of games utilize Blockchain Regulation technology and their decentralized nature allows people to earn money while progressing through the game.
This new trend inspired many game developers to create unique blockchain-based games that give the opportunity to people to earn money. But is this process considered gambling?
Well, there are many different types of crypto games and not all of them can fit in the same category. If you access any crypto casino website, you can see plenty of games that can be played using cryptocurrencies like Blackjack or Slots.
These types of casino games are definitely considered gambling since they operate on an RNG (random number generator) and have the same principles as traditional casino games.
However, the crypto gaming market is vast, and it is not only limited to casino games. There are games like Axie Infinity that involve NFTs and have surpassed $1.2 billion in revenue.
So, in order to find out whether or not crypto gaming can be considered gambling, we have to dig a bit deeper into this relatively new concept.
What is Crypto Gaming?
Crypto gaming is the latest trend that uses blockchain technology which gives out the opportunity for players to earn rewards and items across different crypto gaming projects. Crypto gaming is one of the first concepts that allow people to earn money, in a so-called, play-to-earn model.
Depending on the game, players can earn money in different ways. If we take Axie Infinity, for example, users buy characters called Axies, and they level them up, giving them the opportunity to sell them at a higher price.
On top of that, people can battle with their Axies and earn AXS and SLP, which as Ethereum-based crypto-gaming tokens.
All of this is possible thanks to the use of blockchain technology and smart contracts.
This introduces a whole new element to the industry, where gamers can earn crypto while gaming.
But does this mean that is gambling?
Should We Consider Crypto Gaming as Gambling?
Well, in order to answer this question, let’s see what is the true definition of gambling.
Gambling is an activity where people are risking money or belongings, where there is an element of randomness or chance involved, and where the purpose is to make more money. Basically, people are taking a risk by betting on an uncertain outcome.
If we take this definition and apply it to some of the most popular crypto games like Axie Infinity, we can see that crypto gaming should not be considered gambling.
First of all, even though people are buying their Axies with real money, this cannot be considered a bet since you will receive something that will be yours forever. Additionally, crypto games don’t come with the risk that players can lose all their money.
Of course, this depends on the type of crypto game we are talking about. Most games, not just crypto games, have an element of gambling such as opening supply drops and expecting rare items, but this does not mean that they should be considered as gambling.
How Crypto Games Work?
Crypto games possess many elements found in traditional games, in fact, the only thing that makes crypto games unique is the ownership part of the process. Unlike traditional games, crypto games allow players to earn different rewards that they would actually own on the blockchain.
Nowadays, with traditional games, if you buy a skin on Fortnite for example, you only get to play with that skin and you don’t actually own it. However, the ownership part of crypto gaming is the reason why this industry took off.
The only drawback to crypto games is the requirements that most games have in order for you to start playing. For example, Axie Infinity requires you to buy at least three Axies in order to play the game. With the lowest price Axie coming at $100, you need to invest $300 before you even start earning some money in the process.
So, the concept of crypto gaming should not be considered gambling, even though there might be some traces of gambling in the process. The idea of crypto gambling is to give people a chance to earn money and actually own their digital collectibles.
There are different types of crypto games and choosing the right one is crucial in order to make sure that the entire process is profitable for you.