Understand what makes virtual items valuable

Why do virtual items have value? This is a question I’ve heard countless times from people who don’t seem to understand why someone would spend $20,000 on a plot of land. virtual earth or $2,000 in a virtual armor set. To these people, the concept of spending real money on intangibles sounds ridiculous, but to someone who grew up playing video games with algorithmic scarcity it makes sense. Let me explain…


Scarcity is undoubtedly an important factor in assigning value to virtual items. For example, when diamonds were some of the least common raw materials in the video game Minecraft, they were also some of the most valuable. Players used to use diamonds as a store of value in online multiplayer. minecraft servers who would treat them like treasure and hoard them in hidden chests. Diamonds were occasionally used as a medium of trade when players traded them for other scarce items in the game. I refer to this period in Minecraft history as the “diamond standard era”.
Diamond Mining (left) and Diamond Armor (right) in Minecraft
In the age of the diamond standard, minecraft diamonds were also hard to get. This is another key reason why they were of great value to gamers. To start mining for diamonds, he first had to spend hours acquiring the materials needed to make diamond mining tools. Only after having the right tools could you embark on a diamond mining expedition; and even then, he would still have to spend hours mining enough rough diamonds to produce a full set of diamond armor.


Minecraft diamonds also had value because they had great utility in the game. A player with 24 diamonds could use them to craft a full set of diamond armor, one of the most coveted. possessions in the game during the diamond standard era. Diamond armor was not only the most durable type of armor, it also offered players the highest degree of protection against hostile entities. Wearing diamond armor and wielding diamond weapons statistically increased your chances of survival. If you manage to survive, you will be able to keep your wealth in the game. By using diamond tools, you could even increase your productivity in the game. Just like investing in the real world, putting your (diamond) savings to work was a surefire way to increase your wealth in Minecraft.
Player wearing runic armor (left) and fishing “swords” (right) in Runescape
Much like the diamond armor in Minecraft, a full set of runic armor took the cake in Runescape as one of the most desired items in the game. In high school, I would give up playtime after school with my friends to fish for swordfish, also known as “swordies,” on Karamja Island in Old School Runescape (OSRS). After hundreds of hours fishing for swords and more trips to the Great Exchange than I can count, I was finally able to amass enough game currency to buy the set of my dreams. Thanks to my new runic armor, I was finally able to kill some of the most menacing and powerful adversaries in the game and reap the rewards in coins, the native currency of the Runescape universe. The virtual economies of Runescape and Minecraft had a lot in common. Virtual items effectively served as stores of value because they were algorithmically scarce and difficult to acquire. In Runescape he had swords. In Minecraft I had diamonds. In both games, I spent an embarrassing amount of time and energy capturing value and storing it in these virtual assets. this type of value capture mechanisms they are also present in modern metaverse platforms like Decentraland.

capturing value

golf art is one of a handful of promising new games that allow players to capture, store, and trade value in Decentraland. In Golfcraft, players complete virtual miniature golf courses to earn gold, the currency of the Golfcraft ecosystem. Coins are scarce and hard to come by. They also have in-game utility, making them a good store of value.
Golfcraft Game (left) and community-designed Golfcraft Wearables (right)
Coins can be reinvested in the game for a chance to win tickets by playing competitively. Tickets can be used to purchase portable Golfcraft items. Some Golfcraft wearables increase momentum, helping players earn more XP and Coins for the time they spend playing the game. In this sense, wearables in Golfcraft serve a similar purpose to armor in Minecraft and Runescape. They are purchased by players using in-game currency (tickets) and are used to compound wealth in game. Diamonds serve a similar but slightly different function. Diamonds are randomly awarded to Golfcraft players simply for playing the game. Players must spend diamonds to upgrade their clubs’ attributes: power, control, and accuracy. Upgraded clubs are worth more on the secondary market because they have higher utility to players in the game.

extracting value

The key differentiator between play-to-win games like Golfcraft and legacy games like Runescape is that they take advantage of technologies that allow players to easily move value off the platform. Because handcrafted golf clubs and accessories live on-chain like NFTs, they can be easily transferred to third-party marketplaces like Open sea and sold for MANA, the native currency of Decentraland. Players can then exchange MANA for FIAT currencies such as the US dollar, which have greater utility in the physical world. This was one of the most critical features missing from games like Minecraft in Runescape. Players would spend hundreds of hours buffing to generate in-game assets like diamonds and armor. These items effectively served as stores of value in the game thanks to scarcity and usefulness, but its value was not easily transferable to the real world. These items were not good means of exchange outside of their respective virtual worlds. Historically, players have been constrained by the rules of siled metaverse platforms that lacked interoperability with each other. Now, thanks to blockchain technologies like NFTs and cryptocurrencies, gamers can finally extract value from the real world of your virtual assets. Third-party marketplaces like OpenSea already allow players to buy Golfcraft clubs. It’s only a matter of time before players can get value and utility out of these clubs in metaverses other than Decentraland. They want more? Connect with NFT Plazas Join the weekly newsletter Join our discord Follow us on Twitter Like us on facebook Follow us on Instagram *All investment/financial opinions expressed by NFT Plazas come from the personal research and experience of our site moderators and are intended as educational material only. People are required to fully research any product before making any type of investment.
Marketing strategist passionate about emerging technologies. Currently helping disruptive brands bridge the gap between reality and the metaverse. Read also : Avalanche Nft Marketplaces Nft Marketplaces Fees Nft Marketplaces 2022 What Are The Nft Marketplaces
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