Argentina’s struggle with inflation is driving people to turn to crypto games to earn as record inflation is pushing the value of fiat salaries down.
About 2,400 Argentines visited Decentral Games platforms between March 1 and March 15 this year
Inflation at full steam ahead
Both Argentina and Brazil face high inflation and are overshadowed only by Venezuela, which has been in a state of hyperinflation for several years. People are looking for
Inflation in Argentina is above 50% year on year and salaries have not kept pace, while in Brazil inflation doubled to 10% a year in 2021.
Inflation rates over the past four years
Decentral Games believes that inflation will continue to rise in these countries and that the trend of people turning to play-to-earn games will continue for the foreseeable future. Gabriel Mellace, the company’s head of Investor Relations, said:
“Young people are not only looking for profitability. They are also looking for fun.”
How does play to earn work?
Most major metaverse gaming platforms require people to buy an NFT, which is their “character”, before they can participate in the ecosystem. The cost of a single NFT often runs into the thousands of dollars, making it unaffordable for the vast majority of people in the world.
However, these platforms offer “NFT Delegations” which is basically a system that allows owners to lend their NFT character to another user. The user can then join the ecosystem and participate in things like crypto games which you can earn through the “rented” NFT.
Franco Villaflor, a 28-year-old DJ, told Bloomberg News that he earns about $1500 a month playing poker in the metaverse, which is basically what he would earn in a month from his regular job as a DJ. He hires an NFT that costs him 40% of what he earns during the session.
Get your daily summary of Bitcoin† DeFi† NFT and web3 news from CryptoSlate
get a Side on the crypto market
Join CryptoSlate Edge and get access to our exclusive Discord community, more exclusive content and analysis.
Analysis on the chain
Join now for $19/month Discover all the benefits