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.
Roughly 2,400 Argentinians visited Decentral Games’ platforms between March 1 and March 15 of this year
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.
Inflation percentages over the last four years
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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