The latest video game/NFT fad is Axie Infinity.
Once it was mentioned that you couldn't make money playing video games, no one imagined that it would become a reality any day.
Is this game considered a bubble? This term is often used by individuals who want to discredit a market. In several cases, (not to say all) a bubble is an estimation, like irrationally overpricing something. The drawback here is the cost of that to which is associated, in many cases, to our own preferences.
Several analysts have called Bitcoin a meaningless speculative bubble dedicated to perish from its construction. Of course this is not a prediction, I am talking about a preference. That is, they are not attracted to the asset and consider those who are investing in it to be fools.
The reality is that markets are being formed for different and different reasons. If there is demand, there is cost. That's just the way it is.
The bursting of a bubble (or the disproportionate overvaluation of a market), in almost all cases, is determined by 2 causes: The population leaves the game or the money runs out.
Commonly, a euphoria phase is generated prior to the collapse. Euphoria is characterized by recklessness. In other words, people use money they do not have to market. I am referring to credit. Demand drives up costs. But it is an unsustainable demand.
Well, bubbles, with the times, burst. There is a capitulation. The cost is corrected. And, then comes a recomposition.
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This means that the bursting of a bubble does not exactly mean the demise of a market. It means that markets fluctuate and sometimes a lot. We must be very careful once we hear the term bubble.
Obviously a fair valuation is paramount when investing in something. But in order to make money in investments it is fundamental to sell cheap and sell high. Obviously you have to be optimistic.
This is not easy to guess. One usually goes to the trends. Several patterns and statisticians are analyzed. Obviously there are no certainties. No one knows the future. But we tend to make decisions on probabilities.
Is Axie Infinity a scam? There is no reason to think so. The game has serious players. Everything looks very transparent. It is a game where there are rules. Everything was very clear from the beginning. In addition, it has been very well liked.
In other words, a very good partnership has been formed. The game is new and still quite unrecognized. It has just begun, and we are still starting.
Now let's focus on the game/business.
The axies are the protagonists of the game. Where they have the possibility to trade or sell with a token called AXS. With just 3 Axies, you arm your team. And with it you can fight. The winner of a fight receives tokens called LSP. In other words, the investment is the purchase of Axies. And the profit is the LSPs achieved by our own victories.
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Now, let's explain it with mining analogies. Let's suppose that axies are the mining sets, the war capacity of the acquired axes is the mining complexity and the LSPs are the mined cryptos. Where is the risk? The danger is in costing more for less.
If you buy expensive axies, they earn little, and produce little. Therefore, we are not talking about a month, but a year or even more. Which could happen if demand drops overwhelmingly or the effectiveness of the other groups increases exponentially.
Fortunately, it's not a bubble. At least, not yet. Why? The plan is still quite small. As a result, word has not yet spread far enough. There are still a lot of people to get in. The public has not yet discovered this game. However, it will gain momentum over time.
This game can go viral. Players remain quite enthusiastic about it. Of the 3 pillars of Ethereum: stablecoins, DeFi and NFTs, all possess future. There is continually demand for an optimal game. Now, it is up to us to wait and see how Axie Infinity evolves.