🧠 Diana’s Guide: Questions About Virtual Currency
✨ You’re new here? Perfect. Let’s break down some of the biggest questions people have when stepping into crypto.
📍1. Where does the credibility of crypto come from? Will it collapse?
🔹 Code Rules
Bitcoin has hard-coded rules:
Only 21 million will ever exist
New coins are mined every ~10 minutes
Rewards decrease over time
These rules are public and can't be changed.
🔹 Network Consensus
If enough people use it and agree on its value, it holds worth—like any currency!
🔹 Decentralized Operation
There’s no CEO. No central bank. Just a global network running the same software.
🔹 Transparency
Every transaction is recorded on the blockchain—open for anyone to see.
❗But can it collapse?
Yes, and it has.
Projects like LUNA or FTX collapsed due to bad design or fraud.
So don’t believe “every crypto is safe.”
Only strong, decentralized projects like Bitcoin or Ethereum have real staying power.
🎮 2. How are items turned into NFTs in games?
In blockchain games:
Weapons, skins, pets = can be minted as NFTs
NFTs give true ownership to players
You can trade them without needing the game company’s permission
🧪 Example: You win a rare sword. The game turns it into an NFT. You sell it on a market. Boom.
💡 But not everything should be an NFT.
Good NFTs: rare skins, event tickets, digital certificates.
Bad NFTs: random screenshots, low-effort images, copy-paste junk.
💵 3. Do cryptocurrencies tie to the US dollar?
Most crypto like BTC and ETH = ❌ not tied to USD
They float based on market demand. Prices go up and down.
But... there’s a type called stablecoins, and these are tied to USD:
Stablecoin How it works
USDT/USDC Backed by real dollars in a bank
DAI Backed by crypto collateral
UST (failed) Algorithmic, no real backing ❌
They help people use crypto like dollars—stable for payments and trading.
🌐 4. In the metaverse, does money need to link to real-world currency?
Not always.
You might use in-game tokens like MANA, SAND, or ETH inside virtual worlds.
But once you want to cash out (buy groceries, pay rent), you'll need to convert to USD (or your local currency).
⚠️ If USD collapses someday?
Crypto might also take a hit—because many coins are still priced in dollars.
This is a real risk people are thinking about.
🕹 5. In GameFi, who gives out the money and how do companies make profit?
GameFi = games + finance
👾 How do players earn?
NFTs and tokens come from smart contracts (pre-coded rules)
You earn them through gameplay: mining, battling, trading
💰 How do companies earn?
Selling NFTs early (like land or characters)
Taking a cut of every trade
Holding their own tokens
Selling premium features
Launching governance tokens (used for voting, also tradable)
🚨 But! If no new players come in, or if token prices drop…
→ That’s how many GameFi games collapse.
So, only games with real use cases and long-term plans are sustainable.
✅ To Summarize:
You asked... What it really means
Can I trust crypto? Depends on decentralization + code
Can it collapse? Yes. Many already have.
What’s the dollar link? Crypto still priced in fiat today
Who gives out game rewards? Smart contracts + coded logic
How do GameFi firms profit? NFT sales, token holdings, etc
🙋♀️ New to crypto?
Don’t worry, Diana’s here to break it down for you—one post at a time.
Follow along for more beginner-friendly guides. 🌸
#Finance #Make Money #crypto #Economic #NFTsForBeginners
