Argentina’s struggle with inflation is causing people to turn to “play-to-earn” crypto games as record inflation is driving down the value of fiat salaries.
The country, which is South America’s second-largest economy, is now ranked fifth around the world in terms of users on so-called “play-to-earn” crypto gaming platforms. Argentina-based visits to Decentral Games, which has the largest userbase in the world, have hit 9,400 since the beginning of 2022, compared to only a few hundred visits over the entirety of 2021.
Meanwhile, Brazil has also climbed in the rankings and is now seventh in terms of users on these platforms.
Inflation full steam ahead
Both Argentina and Brazil are facing high levels of inflation and are only overshadowed by Venezuela, which has been in a state of hyperinflation for a number of years now. People are looking to
Argentina’s inflation has been higher than 50% on an annual basis and salaries have not grown in tandem, while in Brazil inflation doubled in 2021 to 10% annually.
Decentral Games believes that inflation will continue to rise in these countries and the trend of people turning to play-to-earn games will continue in the near future. The company’s head of investor relations Gabriel Mellace said:
“Young people are not only looking for profitability. They’re also looking for fun.”
How does play-to-earn work?
Most of the big metaverse gaming platforms require people to purchase an NFT, which is their “character,” before they can participate in the ecosystem. The cost of a single NFT can often be in the thousands of dollars, making them unaffordable for a vast majority of people in the world.
However, these platforms offer “NFT delegations,” which is basically a system that allows owners to lend out their NFT character to another user. The user can then participate in the ecosystem and engage in things like play-to-earn crypto games via the “rented” NFT.
Franco Villaflor, a 28-year-old DJ, told Bloomberg News that he makes around $1500 a month playing poker in the metaverse, which is basically what he would make in a month working his normal job as a DJ. He rents an NFT which costs him 40% of whatever he earns during the session.
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