A few days ago, I was in a crypto meet up in Santiago Chile, and people began talking about Cryptokitties. Besides seeing this name online, I had no idea what this was or why people were so passionate about it. It turns out Cryptokitties is one of the worlds first game built on the Ethereum blockchain. These kitties are collectibles, and people can buy, sell or trade them.
This caught my attention, this decentralized app (dApp) launched in November 2017 and already 250,000 people have played this game; more than 500,000 digital cats have been sold. These digital cats can breed, creating a new unique DNA on the Etherum blockchain and sell it later. Every digital cat is unique and can’t be copied.
I was surprised when I found out that what people are purchasing is not the actual image of the cat. The company owns all of the graphic elements; they have the full power of this image and can use it as needed; instead people are buying the code within this image and that ultimately make up your digital collectible; hopefully, people know this detail (big detail). For sure this is one of the main differences from a digital collectible and a traditional one. The fact that a conventional collectible is fiscally there and once you buy it no one can take it away; pretty important if you ask me, because I may be wrong, but at the end of the day I believe people are buying these adorable looking kitties and drawn in because of the artwork, plus the fact that they are sold in ETH and in the blockchain
I'm not a fan of these types of games, nothing personal, but when it comes to games, I'm pretty much an old-school fan of video games.
I came across an article by Fortune “The Blockchain Bubble's Latest Victim: Digital Cats”; written on June 2018, pretty clear title. The article states, "While the median price of a CryptoKitty—a unique digital cat that can be traded on the Ethereum blockchain— reached $41 a few months ago, that figure is now closer to $5. Meanwhile, the transaction volume has fallen more than ten-fold from 1.3 million in December to 115,000 in May”. The decrees in the transaction volume has fallen therefore many are pointing out that this dApp is another of many apps that have been liked to bubbles and sudden craze that latter fluctuates.
“CryptoKitties’s troubles also come amid growing evidence that few people are using so-called blockchain’s decentralized applications, known as dApps, and that there is a bubble around blockchain projects in general.”
Honestly, I don’t agree with this whole bubble concept that is used a lot within the crypto world. Whether its Initial Coin Offering, dApps or crypto in general, I believe people can create want ever they want; endless ideas for all types of people. People can choose to use their money on what they feel suits them best, whether it is traditional investments, digital money or collectible cats; why not?
Feel free to comment!