Investing in Virtual Cats: The Future of Assets
The latest phenomenon in the realm of virtual assets is emerging with digital cats called CryptoKitties. Debuting on November 28, 2017, as one of the pioneering blockchain games, these virtual felines are generating unprecedented prices. Currently, the average price per CryptoKitty is approximately $84, with some fetching tens of thousands of dollars.
To buy, sell, or “breed” these CryptoKitties, one must utilize a smart contract-based token (ERC-721) that operates on Ethereum’s blockchain technology. This blockchain serves as the decentralized ledger underlying several cryptocurrencies, including Bitcoin. Ethereum, akin to Bitcoin, is another cryptocurrency but includes unique features that promote “smart” monetary transactions between users. (For more details, refer to: What is Cryptocurrency?)
If you’re interested in acquiring some CryptoKitties, you’ll need to convert your local currency (like dollars or euros) into Ethereum, commonly known as ether. As of this moment, the value of one ether is around $824.
What Are CryptoKitties?
CryptoKitties are virtual cats residing on a digital network, each possessing distinct traits referred to as “cattributes,” determined by their digital genomes. With over 4 billion potential genetic configurations, the combinations for your virtual kitty are virtually limitless. Some cattributes, like wingtips or blood-red, are considered more desirable and therefore more valuable, creating a thriving marketplace.
The craze surrounding CryptoKitties has drawn comparisons to the Beanie Babies trend of the 1990s, or the trading of baseball or Pokémon cards. Collectors familiar with such items recognize that their values can be subjective or based on scarcity. In this scenario, scarcity is partially influenced by the digital genome established by the game’s creators.
Why Invest in CryptoKitties?
Currently, CryptoKitties appear to lack intrinsic value, relying instead on the perceived worth assigned by the community. In essence, people engage in buying, selling, and breeding these digital cats based on their belief that their value will appreciate over time. Earnings from selling or breeding these virtual felines are realized in ether, which can then be converted into traditional currency.
Beyond the potential for profit, playing CryptoKitties is an enjoyable experience. The traits of your digital kittens can only be discovered upon their arrival, introducing elements of chance and gaming excitement along with the opportunity to earn money.
What Does the CryptoKitties Craze Signify?
As previously noted, CryptoKitties lack inherent value. However, the CryptoKitties White Papurr, authored by the game’s developer Axiom Zen, outlines the broader aim of making blockchain technology more accessible to the public, a concept often met with confusion.
The document encapsulates the primary goal of CryptoKitties: “By normalizing the practical application of smart contracts and cryptocurrency transactions, we will empower everyday consumers with a foundational understanding of distributed ledger technology.”
Who would have thought that digital cats could serve as a gateway for the average person to grasp the future of technology?
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