Re: Axie Infinity and Play 2 Earn games, it was explained to me that there is a significative number of people (many in the Philippines, apparently) making a living out of this. That is, their time is sunk into this game not because they enjoy it or derive any pleasure out of it -- from what I've seen, it's not an enjoyable game and wouldn't exist without the money reward aspect -- but because it's a way to earn a living.
Are these people enjoying the game? Doubtful. They found a way to make a living. Is this a "productive" way to earn a living? Also doubtful. But is it any different from professional poker players (other than poker is probably a better game than Axie Infinity)?
I know it rubs me the wrong way. I don't know what to call it though -- tulip, scam, ponzi, or just a wasteful use of human time that could be better spent in more pleasurable activities, if money wasn't an issue.
Poker is gambling - winners make money by taking losers' money, that is well understood.
In Play 2 Earn my understanding is that it's not gambling, instead money "magically" appears from merely playing the game.
The only way for this to be sustainable is if the output from playing the game is something that someone else finds valuable and can't be automated (otherwise why not automate it?) like Mechanical Turk or the various captcha-solving services.
I don't believe this is the case, so the only other answer is that the buy-ins from newer players are used to reward existing ones - aka a Ponzi. Alternatively, it could be that the system isn't even a Ponzi and is instead bankrolled by the parent company which itself is bankrolled by clueless investors not realizing the above (Play 2 Earn will only work if the entire system produces an output that someone else values enough to pay for and can't get said output elsewhere for cheaper).
Poker is actually not that much different than what you describe. My father played a lot of poker in card rooms. He talked a lot about losing strategically to the fish, to keep them coming back. Without the fish, there generally is no poker ecosystem since money generally follows the button, and without particularly weak players money just tends to change hands. And since there is a rake at most tables, you need a constant influx of money just to support the play.
There is common wisdom that the rake can kill a local poker ecosystem. There can be a lot if good games for weeks or months, then all the weak players can’t sustain any longer, and all the medium players start losing and lose interest, and there’s no one left to win money from and games get harder to form.
How can money appear "magically"? Not even crypto just "appears", and a fiat much less so. Somebody is pumping money into that system - casual gamers, no idea.
AFAIK most players quit after the price tanked. Axie was only employing people for a few months.
You need to ask where the money to pay those players comes from, and the answer is a mix of speculators and new players buying in to the game. So it's just another tulip/ponzi mix.
Are these people enjoying the game? Doubtful. They found a way to make a living. Is this a "productive" way to earn a living? Also doubtful. But is it any different from professional poker players (other than poker is probably a better game than Axie Infinity)?
I know it rubs me the wrong way. I don't know what to call it though -- tulip, scam, ponzi, or just a wasteful use of human time that could be better spent in more pleasurable activities, if money wasn't an issue.