5 reasons why gamers are hesitant to join the Gamefi brigade

GameFi is derived from the two terms “gaming” and “decentralized finance.” Fundamentally, GameFi comprises three distinct elements, Gaming, Decentralized Finance, and NFTs. The games are the bearers of GameFi, decentralized finance is the underlying logic of GameFi, and NFTs are the representations of digital assets of the game such as avatars, skins, or land.

The main attraction of GameFi is that they employ a play-to-earn (P2E) mechanism instead of conventional gaming’s pay-to-play model. A key feature that sustains this P2E model is converting in-game tokens and NFTs into legal currency.

Due to this P2E system, GameFi has garnered a lot of popularity in a short period. While the tokenization of games is nothing new to the gaming ecosystem, GameFi offers an extra layer of transparency to transactions, building trust and making it attractive. By the end of 2021,

However, not all gamers are convinced by the hype surrounding GameFi and are reluctant to join the bandwagon. Below are some of the reasons some gamers are skeptical of GameFi:

Price Volatility

As with many crypto assets, the price of GameFi tokens is speculative and is dependent on the market forces of demand and supply. A player in the GameFi ecosystem can make money by purchasing tokens for speculation and waiting for the price to rise or playing games to receive cryptocurrency rewards.

Source: https://www.fxstreet.com/cryptocurrencies/news/5-reasons-why-gamers-are-hesitant-to-join-the-gamefi-brigade-202203101629