Web3 Gaming’s Income Potential Represents a Tidal Shift in Digital Assets
We’re talking horse business today.
I’ve written to you a few times in recent months about the digital horse-racing game I’ve been playing/investing in since October—Photo Finish Live. In the three months I’ve been at it, my net income is $6,521. And the money will really begin ramping up over the next few months because I bought three digital fillies to serve as breeding stock for digital foals I’ll begin selling in February.
And that’s really what this update is all about: the income potential that Web3 gaming represents.
First, a definition…
What is this Web3 thing?
It’s the internet… on steroids… laced with LSD. Meaning, it’s a pumped-up version of the internet that will be visually hypnotic. A Dolby surround-sound internet… only the surround-sound is visual rather than aural.
Imagine walking down the street holding your smartphone in front of you, and you’re playing a game with hyper-realistic graphics that meld into the cityscape you see on your phone… and it’s all in holographic 3D. Or imagine Google maps in which buildings are rendered in holographic 3D, allowing you to see inside of the building to know where you’re going exactly. Imagine Skype calls in holographic 3D, as though the person you’re talking to is in the room with you.
That’s just the smallest of samplings of what’s coming.
An important corner of Web3 will be gaming. Not only for the entertainment value, mind you, but for the income potential (that will be increasingly important in an AI/robotics world where lots of human job opportunities will die.)
A few years back, I wrote to you about a video game called Star Atlas, a space opera of a video game spanning a massive universe of planets and moons. Individuals and teams compete for resources they mine across galaxies and then sell for very real dollars to other players who need those resources for what they’re up to inside the game.
The game, still under development, offers up stunning graphics so lifelike, you think these alien beings are real and that their alien worlds really exist.
But the real point is that players own the in-game assets: the spaceships and the mining rigs used to mine the resources. Once the game is officially up and running, owners will have the option to use their assets or to lease them to others for crypto payments that they can instantly turn into real cash. These assets can be pricey, as in thousands of dollars for a spaceship. So, there will be players who can’t afford a ship early on and will instead lease one to start.
Something similar is already happening with Photo Finish Live, at least in terms of making money off of digital assets.
These particular assets are, well, digital horses. You own them, you race them, you can sell them, and you can breed them.
The racing is fun. Adrenaline pumping. But the real income opportunity is owning one or more fillies (female horses) that one can breed once per season (every 28 days). As the new season begins, the filly gives birth to a new digital foal that the owner can keep and race, or to sell on the market.
New foals, depending on various factors, are selling for between $200 and $1,500 each.
I have three fillies.
By April, each will be generating a foal per month.
Assuming the status quo, we’re talking about $600 to potentially $4,500 per month in the sale of digital horses. To be clear, I’m not counting on $4,500; that would require that each of my fillies gives birth to a female foal, since those sell for the highest prices, and three girls in the same month isn’t likely. Still, somewhere between $600 and $4,500 isn’t a bad bit of income from a digital asset.
There is a cost involved here. I have to pay a stud fee to the owner of a male horse. This month—the first month in which my oldest filly can breed—I paid $100 to breed with a much higher-grade horse. This is my now-pregnant filly:
I paid that $100 on the expectation that the offspring I collect next month will be a high-grade horse that I can then sell for at least double my investment. And if that high-grade foal is a filly, well, I will 10x my investment or more.
This is the future of gaming—owning the in-game assets.
It turns gaming on its head. With most of the games you and I grew up playing, the game’s creator owned the assets. We just played.
But imagine if Pac-Man grew stronger with every level… and that you were playing to earn money based on how many ghosts and fruit you ate, and how many levels you completed… and that you could name and sell your Pac-Man on the open market because he’d reach a certain level or had certain strengths and he was valuable enough that others would pay hundreds of even thousands of dollars to own yours … or that Pac-Man could breed and you could sell Junior Pac-Man on the market to newcomers who want to get involved with the game.
That’s the new world we’re in.
That’s what I’m doing inside Photo Finish Live. I am quite literally playing a game… and I am earning thousands of dollars doing so.
Tomorrow is already here.
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