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Crypto VC Thoughts: GameFi Dilemma



Crypto VC Thoughts: GameFi Dilemma

Why bother to play a game to resemble a soul crashing job just to earn as little as you can ?? 

The model emphasizes on earn rather than an experience to play ?. 

The primary purpose of designing a game is to provide fun. A game without fun is a boring job.

Who wants another job to pay so little ?? 

And much worse, you paid to have a boring job in most of the play-to-earn games in Web3 ??. 

Simply, the earn-to-play model creates a clicking mindless zombie workforce to earn game tokens that may not be sustainable for their price due to high volatility market conditions.

Rather than play-to-earn, we can shift the model to play and earn

The intrinsic value in a game is fun. Therefore, the gaming model should focus on the fun part and create a way for the player would commit their time and money to exchange the job of playing but not to force them to spend to win the game.  

Here are some ideas to save Web3 gaming.

1️⃣ Free game

The game with a free string attached is a game with fun. There are no requirements for users to gain any advantages through payments, and everyone starts with an equal and fair gaming environment. 

2️⃣ Occasional earning opportunities

The game rewards users based on their skills without any potential advantages they can gain through payments.

3️⃣ Proof of work experiences

The game will have a way to require proof of work to verify gamers’ experiences. That way, the gamer can have a fair way to earn their rewards.

4️⃣ Transparent rules

The game will have transparent rules for gamers to play and enjoy the gaming experience. 

All the above requirements are very difficult to meet, and they will cost the gaming system a lot. 

But even with the above four requirements, I am not sure if the game will still provide fun to users ?. 

⚠️ GameFi Trilemma

Playability, profitability, and accessibility are three components of GameFi.

I would argue that you cannot trade off playability for profitability. Simply because if the game is not profitable anymore, no one will touch it anymore

Instead of profitability, we would focus on enjoyability.

At the end of the game, the user’s enjoyment of the game experience should be the priority of the game design.

What do you think?

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Crypto Research

Crypto is a good investment or not



Many people buy crypto to believe it is a great investment. However, it may not be the case.

I asked ChatGPT about the crypto investment and here it is:

Investing in cryptocurrency can be a good opportunity, but it also comes with high risk and volatility. It is important to thoroughly research and understand the cryptocurrency market before investing. Additionally, it is recommended to diversify your investment portfolio and not to invest more than you can afford to lose.

Here are some misconceptions:

First, crypto is not a traditional investment that requires a conventional way to invest. Instead, it is a catch-or-miss investment that you really need to time the market to make profits.

Second, you do not need to hold for too long if you need money quickly. Crypto tends to perform badly long term than average assets did.

Third, high risk only sometimes has high rewards. Many crypto with high risks may not ever provide high returns eventually and many go to zero instead.

Last, do not go FOMO because you are likely to become a bagholder.

There is not missing out and it is too late in the crypto. Rather, you should always keep an eye on the market.

Photo by Jon Tyson on Unsplash

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Crypto Research

Mother of all bubble



We are heading into a bubble economy and there is one that is about to pop.

ChatGPT suggests that a financial bubble is:

A financial bubble is a situation in which the price of an asset, such as a stock or a commodity, becomes artificially inflated due to excessive speculation and investment. This can lead to a situation where the market becomes overvalued and eventually collapses, resulting in significant losses for investors. Bubbles can occur in a variety of different markets and can be caused by a number of factors, including low interest rates, economic growth, and investor sentiment.

Let’s take Tesla as an example.

Tesla CEO is Elon Musk, who purchased Twitter last year and believed the company can help Tesla to make more profits.

Does it? Or he tried to inflate Tesla instead?

If you go to Twitter, there is less opposition than a supporting voice.

Elon Musk sells Tesla cars and Tesla stocks.

People purchase cars to help pump the stock price and when stock price goes up, people want a new Tesla.

Despite all the bad reviews about the car and its questionable autopilot feature, Tesla cars sold quickly and stock goes up no question.

Is this a Ponzi scheme?

Similarly, cryptocurrency is also highly speculative.

It goes up a time to time, but people buy the narrative without further investigating how useful the crypto really is.

What if people stop buying the crypto, will that still go up?

What if the economy is so bad and the interest rate is high that people have less money to buy more crypto?

We will see how it goes.

Photo by Pawel Czerwinski on Unsplash

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Crypto Research

One more thing NFT can do



California will have a pilot program to use NFT to record car titles as an innovation of record management. 

ChatGPT stated NFT is:

NFT stands for “non-fungible token.” It is a digital asset that represents ownership of a unique item or piece of content, such as a digital art piece or collectible. NFTs are created and stored on a blockchain, which is a decentralized digital ledger. This allows for the creation and transfer of ownership of digital assets in a secure and verifiable way.

Finally, the government has realized the use of the blockchain, and it will reduce government spending while providing more accurate information to citizens.

I think blockchain has more utilities other than money. Digital money is the first step in testing society’s compatibility, but the blockchain should focus more on providing services rather than investing to people.

That blockchain service can be essential for society later rather than simply going to moon-style investments to create unsustainable pump and dump.

Such government collaboration is the first step to making blockchain a social system.

Photo by Coinhako on Unsplash

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