Virtual Currency Games

Playing video games is closer to the reality of small boys (and many adult men) making a living. The newly released HunterCoin and the games being developed by VoidSpace, games that reward digital currency rather than virtual princesses or gold stars, look to the future, where the rankings can include dollars, and sterling, euros and yen.

The story of a millionaire (virtual) real estate agent …

Digital currencies are slowly gaining maturity, both in terms of functionality and in terms of the financial infrastructure that allows them to be used as a credible alternative to non-virtual trusted currency. Although Bitcoin, the first and most popular of the cryptocurrencies, was created in 2009, it has been a form of virtual currency used in video games for more than 15 years. The 1997 Ultima Online was the first notable attempt to incorporate a large-scale virtual economy into the game. Players can collect gold coins by searching, fighting monsters and finding treasure and spending on armor, weapons or real estate. It was the initial embodiment of a virtual currency that only existed in the game, even though it reflected the real world economy, as the Ultima currency suffered from inflation as a result of game mechanics, which ensured that there was no definitive supply. kill monsters and thus collect gold coins.

Released in 1999, EverQuest took the virtual currency game one step further by allowing players to market virtual goods to each other in the game and the game designer also banned the sale of virtual objects to each other on eBay. Neal Stephenson’s 2011 novel Reamde explored an entertaining phenomenon around the world, with Chinese players or “golden farmers” working on EverQuest and other such games with the goal of gaining experience points to play full time, making the characters stronger and more sought after. These characters would be sold on eBay to western players who wanted or couldn’t afford to upgrade their characters. Edward Castronova, a professor of telecommunications at Indiana University and an expert on virtual currencies, based on EverQuest’s calculated currency exchange rate, in 2002 EverQuest was the 77th richest country in the world, somewhere between Russia and Bulgaria and had a higher GDP per capita than China and India.

Launched in 2003 and reaching one million regular users by 2014, Second Life is perhaps the most complete example of the virtual economy to date, as the virtual currency can be used to buy or sell Linden’s dollar at stake. exchange for real world currencies through market-based exchanges. Between 2002-13, $ 10,000 billion in virtual gambling transactions were recorded, it became a Second Life marketplace where players and companies were able to design, promote and sell content created. Real estate was a particularly lucrative business in 2006, when Ailin Graef became a second-millionaire in her first life, initially turning $ 9.95 into an investment of more than $ 1 million over 2.5 years, buying, selling and trading virtual real estate to other players. Examples like Ailin are an exception to the rule, however, with only 233 users earning more than $ 5,000 in Second Life activities in 2009.

How to pay for asteroid mining in dollars …

So far, the ability to create non-virtual money in video games has been secondary design, the player must go through unauthorized channels to exchange their virtual prey or have a level of creative or business skills in the real world. which could be exchanged for cash. It may change with the emergence of video games around the “plumbing” of recognized digital currency platforms. The approach taken by HunterCoin is to “gamify” what is usually a technical and automatic process for creating digital currency. Unlike real-world currencies created by printing by a central bank, digital currencies are created by being “exploited” by users. The source code under a particular digital currency that allows it to operate is called a blockchain, a decentralized online public book that records all transactions and currency exchanges between individuals. Since digital currency is only intangible data, it is more prone to fraud than physical currency, as it is possible to double a unit of currency, thereby causing inflation or changing the value of the transaction for personal gain. To prevent this from happening, blockchains are “controlled” by volunteers or “miners,” and for this purpose they verify the validity of each transaction with the help of specialized hardware and software, ensuring that data is not manipulated. It is an automatic software process for mining, although it requires a lot of time as it requires a lot of processing power from the computer. To reward a miner for verifying a transaction, the blockchain releases a new unit of digital currency and rewards it as an incentive to continue maintaining the network. This creates digital currency. It can take from a few days to a few years for a person to successfully extract coins that groups of users combine their resources in the mining “pool” to use the combined processing power of computers to extract coins faster.

The HunterCoin game is part of this blockchain for a digital currency called HunterCoin. Gaming replaces the automatic process of exploiting digital currency and makes it manual for the first time and without the need for expensive hardware. Using strategy, time and teamwork, players go out on the map to look for coins and when they find some and return to their base safely (other teams stop there and try to steal coins) they can collect their coins by depositing them into their digital wallet, usually an application designed to make and receive digital payments. 10% of the value of any coins placed by players goes to miners who maintain HunterCoin’s blockchain plus a small percentage of the coins lost when a player dies and their coins fall. Although the game’s graphics are basic, HunterCoin needs time to accumulate significant rewards as it is the first video game with a built-in prize money to be seen as the first video game.

Although still in development, VoidSpace is a more elaborate approach to gaming in the economy in which it operates. VoidSpace is set in space as players explore an ever-growing universe that exploits natural resources like asteroids and aims to build their galactic empire in exchange for goods with other players. Players will be rewarded with DogeCoin mining, a more established form of digital currency that is now used to make microcompositions on various social networking sites. DogeCoin will also be a means of game trading and in-game shopping between players. Like HunterCoin, DogeCoin is a legal and fully functioning digital currency and can be exchanged for both trusted digital and real currencies in exchanges like Poloniex like HunterCoin.

The future of video games?

Although there are early days in terms of quality, the HunterCoin and VoidSpace versions are an interesting indication of what the next evolution of games might be. MMORPGs are now being seen as a way to model the outbreak of the epidemic, as players ’reactions to an unwanted plague recorded aspects of the human model of harsh behavior in real-world outbreaks. It could be assumed that in the end virtual economies in the game will be based on the observation of how economic models are used to test economic theories and develop responses to massive failures with the real value of digital currency. It is a good testament to the functionality and potential applications of digital currencies, as they promise to go beyond mere exchange vehicles and into exciting areas of personal digital ownership. Meanwhile, players have the means to convert hours in front of the screen into digital currency and then dollars, sterling, euros or yen.

But before I leave the day’s work …

… it is worth mentioning the current exchange rates. It is estimated that a player can purchase an initial 1,005 HunterCoin (HUC) registration fee for accessing HunterCoin in a 1-day game. Now that the HUC cannot be directly exchanged with the USD, digital currencies like Bitcoin need to become more established. At the time of writing the HUC Bitcoin (BC) exchange rate is 0.00001900, compared to the BC USD $ 384.24. 1 HUC traded in BC and then USD before considering any transaction fees … $ 0.01 USD. This doesn’t mean that a player who is more skilled can’t increase the team of virtual CoinHunters and maybe use other “bot” programs that would automatically play in the disguise of another player and win coins for them. but I think it’s safe to say that efforts like this at the moment can also lead to enough change in everyday McDonalds in a real way. Unless players are willing to submit to intrusive in-game ads, share personal data, or join a game like CoinHunter built into the Bitcoin blockchain, it’s impossible for the rewards to be more than micro-payments for the video game. Maybe it’s a good thing, because if you probably pay for something you stop having more games?