Playing crypto games for a living: Filipinos seek to escape poverty • FRANCE 24 English

FRANCE 24 English

5 Jul 202405:46

Summary

TLDRThe video script explores the rise of professional gaming in the Philippines, where young players earn a living through cryptocurrency rewards in online games. Gamers gather at cybercafes, spending over 12 hours daily to earn twice the minimum wage. Despite risks from scams and cryptocurrency volatility, the allure of digital earnings has drawn many away from traditional jobs, especially during the COVID-19 pandemic. The script also highlights the use of stablecoins to mitigate risks and the potential challenges of regulating this booming digital economy.

Takeaways

🕹️ Video games in the Philippines are a source of income for some young people, who play to earn tokens or rewards that can be converted into pesos.
💻 Online gaming has become a full-time occupation where players can earn more than the country's minimum wage, sometimes even twice as much.
🏆 Players gather at cyber cafes, such as Janal Bronze Cyber Cafe, where the winner of each game earns cryptocurrency that can be exchanged for real cash.
🍽️ Cyber cafes provide support to players, including free food, and act as a community and company that takes care of the players.
🌐 The cryptocurrency craze has spread across the Philippines, with Filipinos making up nearly a third of the global community playing these types of games.
🚜 Some individuals, like the 22-year-old who chose to cultivate virtual farms instead of taking over his family's farm, make more money online than they would have in traditional jobs.
💰 The digital economy offers lucrative work, attracting a new generation away from traditional jobs like farming.
🌐 During the COVID-19 pandemic, online gaming offered opportunities for people to make money from home when they were not allowed to go outside.
🔒 Cyber cafe owners act as mentors, protecting young players from scammers and hackers in a market worth billions.
📉 The volatility of cryptocurrencies poses a risk, as seen in 2022 when many players were ruined after the global collapse of Bitcoin.
💡 Some game developers use stablecoins, which are less volatile and linked to traditional currencies, to mitigate the risks associated with cryptocurrency fluctuations.

Q & A

What is the main motivation for young Filipinos to play video games at the cyber cafe?
-The main motivation is to make money. They play games to earn tokens or rewards that can be converted into pesos, which is a viable full-time occupation for them.
How much can a player earn in a month by playing games at the cyber cafe?
-A player can earn more than €300 a month, which is twice the country's minimum wage.
What is the relationship between the cyber cafe and the players?
-The cyber cafe provides a place for the players to play games and in return, they give a portion of their earnings to the cyber cafe. It's like a company that takes care of its players.
What is the significance of cryptocurrency in the gaming community mentioned in the script?
-Cryptocurrency is significant as it is the virtual money earned by players which can be exchanged for real cash, and it has gripped the entire country.
Why did the 22-year-old choose to cultivate virtual farms instead of taking over his family's farm?
-He chose to cultivate virtual farms because it's similar to farming but online, and he makes more money doing it digitally than he would have on his parents' farm.
How has the COVID-19 pandemic affected the gaming and cryptocurrency industry in the Philippines?
-The pandemic has led to an increase in people turning to online gaming as a way to make money from home, as traditional jobs were not accessible during lockdowns.
What role does the cyber cafe owner play in the gaming community?
-The cyber cafe owner acts as a mentor, keeping an eye on the youngest players and educating them about potential scammers and how to protect their digital assets.
What are the potential dangers associated with the volatility of cryptocurrencies?
-The volatility of cryptocurrencies poses a danger as it can lead to significant financial losses, as seen in 2022 when Bitcoin lost over 60% of its value, forcing many Filipinos to abandon gaming.
What measures are being taken to protect players from the volatility of cryptocurrencies?
-Some developers are using less volatile cryptocurrencies that are indexed or linked to traditional currencies, such as the US dollar and the Euro, to provide more stability.
How does the game 'kryptos Shish' work, and what are the potential earnings for players?
-In 'kryptos Shish', players compete by being the last clicker to win. After paying a $1 fee, the winner gets $7, and the remaining $3 goes to the developer. It's simple and can be very profitable for some.
What is the stance of the Philippine authorities on the cryptocurrency boom?
-The authorities are keeping a nervous eye on the cryptocurrency boom and may take steps to regulate the large and growing market, although the global value of cryptocurrencies makes it potentially difficult to control.

Outlines

00:00

🎮 Filipino Gamers Turn to Cryptocurrency for Income

This paragraph introduces the phenomenon of young Filipinos who play video games not for leisure but as a means to earn a living. They gather at cybercafes, such as Janal Bronze, where winning games can result in cryptocurrency earnings, which are then exchanged for real money. The narrative highlights the appeal of this work, as it allows individuals to earn more than the national minimum wage, with some players even supporting their communities. The script also mentions the risks involved, such as scams and the volatility of cryptocurrencies, which can lead to significant losses for players.

05:01

🏦 The Regulatory Challenge of the Crypto Gaming Boom

The second paragraph delves into the broader implications of the crypto gaming boom in the Philippines. It discusses the potential for regulation by authorities who are concerned about the rapid growth of this market, which is part of a global cryptocurrency valuation exceeding $2 trillion. The paragraph contrasts the views of those who see the gaming as akin to a casino, based on luck, with those who argue it is a skill-based activity. It also touches on the efforts of some game developers to mitigate risk by using stablecoins, which are less susceptible to the volatility that can affect traditional cryptocurrencies.

Mindmap

Keywords

💡Video Games

Video games are electronic games that involve interaction between the player and user-interface elements such as a keyboard, mouse, or game controller. In the context of the video, video games are not just a form of entertainment but also a means for young Filipinos to earn a living by playing and earning in-game rewards that can be converted into real money.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central authority. In the video, players earn cryptocurrency through gaming, which can be exchanged for real cash, highlighting the growing trend of digital economies and how they intersect with traditional work.

💡Cyber Cafe

A cyber cafe is an establishment that provides computers with internet access to the public, usually for a fee. In the video, the cyber cafe is portrayed as a hub where players gather to play games and earn cryptocurrency, emphasizing the social and communal aspect of online gaming in the Philippines.

💡Virtual Money

Virtual money, as mentioned in the video, refers to the digital currency earned by players in online games. It is significant because it can be converted into real-world currency, thus providing an income source for gamers, especially in the context of the Philippines where traditional jobs may be scarce.

💡Minimum Wage

Minimum wage is the lowest wage permitted by a government or by a special agreement. The video mentions that gamers can earn twice the country's minimum wage by playing games, indicating the potential for online gaming to offer competitive income compared to traditional employment.

💡Digital Economy

The digital economy encompasses all economic activities that result from digital transactions over computer networks. The video discusses how the new generation in the Philippines is turning away from traditional jobs and towards the digital economy, where opportunities for earning money through online activities are abundant.

💡High-Speed Internet

High-speed internet refers to internet access with a high data transfer rate. The video notes that Filipinos take advantage of the country's high-speed internet to participate in online gaming, which is crucial for the success of their gaming and earning activities.

💡Stable Coins

Stable coins are cryptocurrencies designed to minimize price volatility by pegging them to a stable asset, such as the US dollar or the Euro. The video discusses the use of stable coins in gaming to mitigate the risks associated with the volatility of cryptocurrencies, providing a safer option for gamers to earn and store value.

💡Volatility

Volatility refers to the degree of variation of a trading price series over time. In the context of the video, the volatility of cryptocurrencies poses a significant risk to gamers, as it can lead to significant losses, as evidenced by the global collapse of Bitcoin affecting many Filipino gamers.

💡Scammers

Scammers are individuals who engage in fraudulent schemes to deceive people, typically for personal gain. The video mentions the presence of scammers in the gaming and cryptocurrency industry, highlighting the need for players to be cautious and protect their digital assets.

💡Regulation

Regulation refers to the act of controlling or managing the amount, rate, or yield of something. The video suggests that authorities in the Philippines are considering regulating the booming cryptocurrency market, which could impact the gaming community and the way they earn income through gaming.

Highlights

Young Filipinos are playing video games as a full-time occupation to earn money.

Online gaming can be a source of income through tokens or rewards converted into pesos.

Players gather at cyber cafes to compete and earn cryptocurrency.

Players can earn more than €300 a month, which is twice the country's minimum wage.

A portion of the earnings is given to the cyber cafe as part of a community-like company structure.

Cryptocurrency has become a significant part of the gaming community in the Philippines.

Filipinos make up nearly a third of the global community playing cryptocurrency games.

High-speed internet in the country is leveraged for online gaming and cryptocurrency earnings.

A 22-year-old chose to cultivate virtual farms over taking over his family's physical farm.

Virtual farming can be more profitable than traditional farming for some Filipinos.

The new generation is attracted to the digital economy over traditional jobs.

The COVID-19 pandemic led to an increase in online gaming for income due to lockdowns.

A cryptocurrency conference in Buo attracted hundreds interested in the gaming industry.

Successful gamers and ordinary people share their stories and experiences at the conference.

The gaming community faces risks from scammers and hackers in the $7 billion market.

Educating members on protecting their digital assets is crucial due to market risks.

The volatility of cryptocurrencies like Bitcoin has led to financial ruin for some players.

Some game developers use stablecoins to mitigate the risks of cryptocurrency volatility.

Games like Kryptos offer a simple mechanism for players to win stablecoins.

The debate on whether online gaming for cryptocurrency is akin to a casino is highlighted.

Philippine authorities are concerned about the growing cryptocurrency gaming market and may regulate it.

The global value of cryptocurrencies poses challenges for regulation efforts.