Our Guide to Gambling in the Metaverse
Posted by Harry Kane on Tuesday, November 9, 2021
The concept of the metaverse is often discussed in relation to Facebook’s own proposed iteration, but the truth is that this notion extends far beyond the world’s largest social media channel.
For example, we’ve seen a huge number of metaverse coins and platforms emerge in the cryptocurrency market of late, with innovative tokens like Decentraland and Axie Infinity leading a niche that currently boasts an exceptional market cap value of $18.5 billion.
But why do crypto metaverse concepts offer a potentially much better experience than Facebook’s own iteration, and what factors should you consider when gambling in the metaverse?
Why Wager in a Crypto Metaverse?
The metaverse is a key evolution of cutting-edge, Web 3.0 technology, with this describing a virtual and three-dimensional world in which you can create your own avatar to socialise, trade tokens and ultimately live a completely alternative and immersive life. You can also wager freely in the crypto metaverse, while Facebook is also expected to make provisions for gambling activity within its own virtual realm.
If we look at the market-leading crypto metaverse ‘Decentraland’, for example, we see a vast and highly lucrative setting in which residents can buy parcels of land. Iconic game developer Atari subsequently purchased two plots of virtual land (creating an estate) as part of a wider partnership with the Decentraland brand, launching a 3D casino where players could wager for real money.
This offers the perfect embodiment of a metaverse casino in the crypto marketplace, as such an entity will serve as completely interactive and three-dimensional environments where players can access a diverse range of games and utilise native tokens to execute bets.
OK, we hear you ask, but what exactly is the difference between a metaverse casino and Facebook’s perceived alternative? Well, while the latter is controlled by a private entity that’s capable of harvesting potentially sensitive user data and potentially retaining at least part-ownership of your unique avatar, crypto metaverse are completely decentralised.
To this end, a metaverse and all its internal components (including casino verticals) are powered by advanced blockchain technology, which negates the third-party control or ownership. This means that you can frequent such realms and wager with anonymity, while retaining complete control over your funds, financial information and virtual identity.
This underscores the increased potential and popularity of metaverse realms located in the cryptocurrency marketplace, particularly when you consider Facebook’s previous controversies concerning data usage and ongoing relationships with organisations such as Cambridge Analytica.
Crypto Metaverse Gambling – The Pros and How to Prosper
While crypto metaverse locations may offer superior value from the perspective of gamblers, it’s important to understand the core advantages associated with this practice. Let’s start by looking at three of the main benefits associated with metaverse gambling using a cryptocurrency token:
#1. The Rollout of Completely Fair and Transparent Games: While online casinos are required to list the RTP rate associated with each game from a transparency perspective, operators maintain a competitive house edge in the favour. However, decentralised metaverse games are completely decentralised and can be created to minimise or eliminate the house edge, ensuring fair and transparent gameplay that’s highly rewarding.
#2. Play to Earn Options: The metaverse also allows for new methods of casino gambling and earning models, including so-called “play to earn” options. In this case, players can play specific casino games in exchange for guaranteed rewards in the form of native crypto assets and NFTs, which can subsequently be sold on the market for a profit. Regular gameplay can translate into increased rewards, creating a more reliable form of income when compared with traditional casino gameplay.
#3. Access Staking Options to Earn More Coins: Another earning model that can be accessed alongside casino gambling is referred to as ‘staking’ cryptocurrency. This is the process of locking up your crypto holdings in order to obtain rewards and earn interest over a predetermined period of time. The rates of return vary from one token and platform to another, but this can create a reliable income stream that helps to offset and supplement your gambling activity in the metaverse.
While you may now be sold on the notion of crypto gambling within the boundaries of your chosen metaverse, the question that remains is what are the key considerations when wagering through Decentraland, Axie Infinity or similar platform? Here are some points to keep in mind:
Crypto Assets are Volatile by Nature
While the recent market trends have seen most major crypto assets appreciate in value over the course of the last 12 and 18 months, such entities are still prone to considerable periods of volatility.
You’ll need to factor this in when wagering in the crypto metaverse, as the value of your bankroll may occasionally fluctuate wildly from one day to the other. So, you’ll need to ensure that your bankroll never exceeds a total amount that you can afford to lose, while monitoring prices and fluctuations to manage your money proactively.
MetaVerse Gambling is Highly Immersive
There are some concerns about metaverse wagering from the perspective of responsible gambling, particularly given the authentic and immersive nature of the practice. After all, being able to wager in completely interactive and 3D settings can cause gamblers to be consumed in their new reality, while the use of a virtual avatar may also encourage players to wager more than they can afford.
You’ll definitely need to keep this in mind as a gambler, ideally by setting time limits for gameplay and establishing daily deposit limits.
Choosing the Right Metaverse for You
On a final note, there remains a growing number of metaverse platforms and tokens available in the crypto marketplace. Each of these is completely different, from the land-based nature of Decentraland to the character-driven Axie Infinity.
Each entity features different types of casino verticals and earning models too, so you’ll need to review these in detail to determine which platform is right for you.