The Future of Blockchain Gaming

If more money is being extracted than what is being put in, then naturally the economy will eventually fall apart. Money doesn’t grow on trees after all, not even digital ones.

And if nearly the entire audience who is playing the game is only there to make money, as soon as the earning possibilities go away so too does the audience, and then the game rapidly falls apart.

As players earn and extract money out of the gaming economy it puts significant downward pressure on prices, as most people are just cashing out their winnings and not reinvesting back into the game.

Play-To-Earn then turns into Play-To-Zero.

The pattern of boom and bust is easy to explain: the token prices appreciate when the game is growing and people are ever increasingly putting in money to buy assets and play.