Cryptocurrency Speculation is Losing Popularity among Game Developers
At the end of 2021, when cryptocurrency prices reached new record levels, several major game developers sought to position non-interchangeable tokens as something grandiose. Only months later, falling prices in the cryptocurrency market and criticism from the players, as well as their own employees of these companies, muffled these enthusiastic exclamations.
Game developers expected that crypto assets would create opportunities for players to own their own gaming digital elements, while creating a new revenue stream for manufacturers. But the reality turned out to be different.
Speculative assets, such as NFT or in-game cryptocurrencies, radically change the dynamics of the game and the expectations of its players. These items, even if it’s a magic sword or a robot suit, are real financial assets. They have a built-in level of speculative risk, and can bring both income and losses. Their presence in the game turns both creators and players into investors.
Mojang, the Microsoft-owned developer of one of the world’s best-selling video games, said NFTs create “scarcity and isolation.” In particular, the Minecraft developer has banned companies from creating worlds in blockchain or NFT networks related to games, effectively banning some already existing experiments.