The Playground For Finance

We know that games prepare children for life. We observe similar behavior in animals. After we grow up, most of us stop playing games. However, times are changing fast. When the change was relatively slow, the preparation made in childhood was sufficient. Nowadays, adults need to play, too.

Before crypto, developing financial games was only for some. States, regulators, and banks determined the game's rules. Nowadays, people who don't wear suits are also developing financial games. We give these games names such as DEFI, play-to-earn, and NFT.

It is necessary to be a successful practitioner of game theory to be a good investor. Successful investors emerge from among poker players because they are trained in game theory. What will we do, and what will our opponent do? We can't be good poker players if we can't anticipate the moves of others. Poker is a game of calculating probabilities, but it also requires unpredictability. What is the intention of the others? Players who calculate the probabilities well and take suitable risks gain from the game.

We often come across hype and bust cycles in crypto. It is difficult to predict which price increase is hype and which is due to a natural value increase. Experienced crypto investors can make successful predictions on this subject. Criteria such as the level of decentralization, the number of users, investor interest in tokens and NFTs, and the project's originality can guide us in this regard.

Comparisons can also help us spot hype. For example, when GLX, Genesis League Sport's governance token, started to be staked, its value skyrocketed. When the GLX price peaked, the market cap of Genesis League Sports(GLS) matched the market cap of Splinterlands. The GLS is a worthwhile project, but the children of NBA superstars seldom reach their level. As a matter of fact, the current market value of GLS is one-third of Splinterlands.

A similar hype has recently occurred in Golem Overlord's Part token. Part lost seven times its value compared to the peak level it reached. Still, a significant portion of those who play the game are in profit. And there may well be new price increases in Golem Overlord's Part token, as the total market value of the Part stands at a modest $6 per account.

The financial games we play sometimes make us feel smart. Especially during bull seasons, every crypto investor turns into an investment guru. When cold winds begin to blow in the market, regrets arise. I wish I had sold the Hive for $2, and now I would have 5x more Hive...

Expertise in crypto investing evolves through lots of experimentation. Lessons learned from mistakes are invaluable, and we acquire competence as time progresses. Maybe our game character gets killed fifty times by monsters, but we pass levels one by one. And opportunities never abound on the fertile soil of crypto networks.

TL;DR

The decentralization provided by blockchain networks provides an ideal environment for financial mechanisms. And a wide variety of financial setups are being implemented on crypto networks. The ones that don't work are eliminated, and those that create excitement are included in the crypto's toolbox. All this may seem like a strange game to outsiders. On this occasion, crypto enthusiasts get a portfolio of digital assets. It takes effort to make money, and the lottery only goes out to those who buy tickets.

Thank you for reading.