This article shows how you how it could be possible to earn a profit by owning a digital horse.
Written by: J.L. KIRVEN | Louisville Courier Journal
If you’ve ever wanted a racehorse, there’s now a way to buy, race and even breed your own thoroughbred without the hassle of being a multimillionaire.
Digital horse racing is one of the fastest rising trends in cryptocurrency. By combining the reach of video games with the exclusivity of a non-fungible token (NFT), digital horse racing aims for users to feel the thrill of being a trainer.
Although digital horse racing only started in 2019, it’s shown to potential to be a part of the sport’s future.
Here’s three commonly asked questions when it comes to digital horse racing:
What are digital/ NFT racehorses?
To get what digital horse racing is, you must understand NFTs. An NFT (non-fungible token) is a digital file that represents something of artistic value. While art collectors buy physical pieces of art, NFT collectors purchase the art’s digital file and ownership rights.
NFTs are typically bought with crypto currencies, such as Bitcoin and Ethereum, and the prices can be astronomical. The most expensive one was Pak’s ‘The Merge’ — an image of two white spheres on a black screen — that was sold for $91.8 million to 28,983 people (about $3,100 per person). The most expensive NFT sold to a single individual went for $69.3 million.
No NFT racehorse has sold for that much, but the numbers are still staggering. According to Zed Run, the first and most-used site for digital horse racing, their horses have been bought for as high as $125,000. What could possibly make a digital horse that valuable?
On Zed Run, horses are classified as “super rare, rare and common.” Simple, but it gets more complex.
The horses are then categorized by a different bloodline, genotype, breed, gender and color coat, resulting in over 90,000 potential combinations. The horses with rarer characteristics are more valuable and likely to win, which leads us into our next question.
Is NFT horse racing a video game?
The short answer is yes, but not exactly.
In a traditional video game, you win by displaying skill over other players. In a digital horse race, the outcome is decided based off chance — yet it’s far from random.
Zed Run limits races to 12 participants. Depending on the race, the buy-in could range from $2 to $50. The horses’ attributes and past performances are considered to create a fair lineup and then the odds are set. Once the race starts, the program’s algorithm simulates 10,000 possible races but chooses one as the eventual outcome.
Even though a player cannot control the outcome of the race, there’s still a level of skill needed to be successful. Managing a stable and making sound smart bets require patience.
The combination of strategy, personalization and 24/7 availability makes digital horse racing a perfect match with the esports world. Races are streamed throughout the day on the website, but players can use the clips for their own Twitch or YouTube accounts.
Outside of the racing simulation, players have control and can choose to rest, sell, or even breed their horse with another to grow their stable. The way the users’ decisions determine the outcome of the horse is reminiscent of a modern-day Tamagotchi. Except this one can make you a few bucks.
How does NFT horse racing make money?
While most people make money off NFTs by selling them, a digital racehorse can win money in real time while racing an unlimited number of races. This is far from the case in live horse racing.
In live horse racing, horses get old, sick and injured. In the digital realm, racehorses don’t deal with the obstacles of a dwindling prime. A horse that wins a high percentage of its races that’s financially backed will turn a profit. At that point, a player can keep trying to win or sell their horse.
Digital and in-person horse racing differ the greatest in terms of control. While few things can mirror the anticipation and unpredictability of a day at Churchill Downs, racing digital property allows users to make more personal, informed bets based on inside knowledge.
Sites like Pegaxy and Digital Downs have followed Zed Run’s influence. Novice players can explore options they like and take the risks they deem necessary. The risk involved with gambling on horse racing doesn’t change but with digital horse racing the rewarded is much more personal.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party, and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects.
Readers should do their own research and consult a professional financial advisor before making any investment decisions.