Due to decentralization, cryptocurrency has gained huge popularity in the online gaming sector and it has transformed the industry in the best possible manner. The sports business has recognized the opportunity that cryptocurrencies and blockchain technologies can provide to further monetize fan interaction, generate huge profits, attract sponsors, and engage a global market in ways that were unthinkable decades before. By incorporating cryptocurrencies into their operations, sports teams, clubs, governing bodies, and businesses like GammaStack are innovating to fulfill fan expectations and thrive in the new digital era. A rapid increase in the number of online gaming businesses all around the globe is investing in bitcoin and other digital assets for a variety of investment, operational, and transactional needs.
What is Cryptocurrency?
Recently, cryptocurrency has spread around the world. The ease of cryptocurrencies is beneficial to many operators, and businesses, and online gaming is one of them. It gives athletes, fans, sponsors, and even the gambling industry more options. It became popular in the market due to its ability to enable users to trade and collect virtual assets that can be traded anywhere in the world.
Since there is typically no central body issuing cryptocurrencies, they are immune to political influence and manipulation. Based on blockchain technology, cryptocurrency uses data mining to record each transaction in a ledger.
What crypto can bring to your business
- Through tokenized traditional assets, crypto may provide access to new asset classes as well as capital and liquidity pools.
- Additionally, it can support the company’s positioning in the emerging market for a time when central banks might issue digital currencies.
- Crypto may make new demographic groups accessible. Users usually represent a more contemporary audience that appreciates candor in commercial transactions.
- Cryptocurrency offers various different options to players that are simply not possible with conventional money. Programmable money, for instance, can make accurate and real-time income sharing possible.
- It is the most accepted digital currency in the market and also has a substantial market share in the gaming market.
- With the introduction of crypto, more protection and safety are provided to the players in the market.
- It also speeds up transactions and no third-party limits are applied to cryptocurrency.
- It provides anonymity to the players and is not linked to any specific person’s identity.
- As a result, to ensure seamless exchanges with important stakeholders, your organization may need to be set up to accept and distribute cryptocurrency.
- Crypto may be a good substitute, but it may lose value over time due to inflation.
- Cryptocurrency offers a fresh way to improve a number of more conventional Treasury tasks, like helping to bolster control over the company’s capital.
- Investing in cryptocurrencies is possible, and some, like bitcoin, have performed remarkably well over the past five years. Volatility hazards are evident, and they must be properly taken into account.
- You can get more knowledge about new technologies by implementing cryptocurrency in your business. It can help you in framing better strategies for your business goals.
- According to a recent survey, up to 40% of clients who pay with cryptocurrency are brand-new to the business, and their average purchase amounts are twice as high as those of credit card users.
Benefits of crypto in online gaming
To spark your company’s thinking about crypto, here are the benefits of crypto in online gaming as follows:
Instant Transaction
Basically, game developers are facing difficulties in marketing their products outside of app stores. These developers can process nano-payments using cryptocurrency and get paid right away. Through the removal of ineffective middlemen and the authority of bureaucracy, cryptocurrency enables gamers to instantly experience their favorite games.
Ability to Play Anywhere
It enables players to pay and withdraw money more quickly and without any limitations from anywhere in the world. It gives users the choice to play without authenticating their identity or email. The adoption of cryptocurrencies makes it possible for gamers to play across borders without worrying about exchange rates or security. You can take out cash and start paying right away. To deposit or withdraw money, you don’t need to create an account or go through the KYC process.
Safe and Secure
The online gaming business needs cryptocurrency as it drives the requirement to avoid fraud. The usage of crypto also eliminates key duplication, hacking as well as theft of keys. It can help businesses in building the trust of players and also increase the number of players on the website. Online games that use cryptography ban the exchange of digital goods without permission. It helps players maintain their trust in smart contracts that make sure their payments are safe and secure. While playing online games, safety is an essential aspect as it increases gaming websites’ credibility.
More for Your Money
Because peer-to-peer transactions between users eliminate middlemen, the usage of cryptocurrencies in online games also eliminates handling and exchange fees. Using bitcoins has no additional fees, and there is no need to wait for the money to transfer. As a result, both gamers and game creators may make better use of the idea. There are various online gaming companies that share knowledge and suggest games to increase their player’s revenue. It allows developers to make more money and players get more value for their money. Compared to PayPal, bank transfers, and credit cards, cryptocurrencies are more affordable.
Hide the player’s Identity
Online bitcoin games are the ones for you if you don’t feel comfortable or interested in disclosing your personal information. Your personal information might not always be protected when you play online games, even while your money might be. Additionally, unless a user chooses to openly publish his/her transactions, cryptocurrency purchases are private. It’s because each time a consumer makes a purchase, a new anonymous bitcoin address is established. All gaming companies also use cryptocurrency’s anonymity for marketing to perform risk-free operations.
Paying of players in digital currencies
It could be interesting to investigate this aspect as it offers better opportunities for users to pay in digital currencies. Furthermore, well-established companies like GammaStack quickly take the role of conventional contracts. It helps them to offer a player their payments on time. It is a great idea that might completely alter how the sports industry operates. The idea of compensating athletes with cryptocurrencies may seem far-fetched, but it is not crazy.
Conclusion
A report by Newzoo’s Analytics Platforms estimates that in 2020, 2.7 billion players will spend about US$159.3 billion on online games. By 2023, the market is predicted to reach a value of over USD 200 billion. Although blockchain and crypto games technology may appear technical, there are clear advantages for both operators and players. It can bring huge revenue to an operator’s business and can connect them with the audience globally. However, it might be possible to include the crypto technology in a way that is advantageous for everyone with the help of important figures in the sports sector. The benefits of the cryptocurrency described above guarantee that the market will be able to provide operators with significant rewards. The above-mentioned role of crypto signifies its importance in the online gaming market. The future of crypto technology in online games is undoubtedly bright and can bring operators and the industry significant advantages.