Cryptocurrency is the new money. Cryptocurrencies are accepted in different sectors and industries worldwide, including the online gaming industry.
Above 50% of gamers of all ages in the U.S. already own cryptocurrency. Hence, cryptocurrency has so much to offer when it applies to the future of gaming.
2.7 billion players will spend around US$159.3 billion on online games in 2020. As online gaming becomes more prominent, developers continue to get new ideas and innovations to ensure they make as much money as possible from their players.
Cryptocurrency can be an excellent avenue for the game industry to explode and flourish since it enables users to spend money on games online with fewer restrictions.
In this article, we explore the different ways cryptocurrency will impact the future of online gaming.
How does cryptocurrency work?
A cryptocurrency is a digital currency that leverages blockchain technology to guarantee decentralization. Unlike other currencies, crypto is immune to government interference. Instead, its various users manage them via the Internet.
Many online game platforms accept cryptocurrency. However, most of such platforms are casino-based. Also, some online lottery websites accept cryptocurrency as their mode of payment.
Cryptocurrencies make it easier for people to stay private when making transactions on online platforms. It also helps terminate the stress of real-world money exchanges.
Digital currencies are used to purchase everyday goods and services. However, people used them mostly for investments. There are different cryptocurrencies, although the most popular and first cryptocurrency is Bitcoin.
Blockchain reserves Bitcoin and other cryptocurrencies in blocks, like chunks of encrypted data. It is nearly impossible for cybercriminals to manipulate information saved on a blockchain.
How to buy Bitcoin and other cryptocurrencies for online gaming
There are other common cryptocurrencies like Ethereum, Peercoin, and Cardano. Bitcoin and other cryptocurrencies are bought and sold on different platforms.
Online gamers can learn how to buy bitcoin on Moonpay. Crypto exchanges are platforms or websites people buy, sell, or trade cryptocurrencies for other digital assets or fiat currency. These websites can convert digital currencies like cryptocurrency to fiat money— like euro and dollar. Crypto exchanges can also convert cryptocurrencies to other forms.
How Does Cryptocurrency Work in Online Gaming?
Online game innovators integrate cryptocurrency into the game, allowing users to make transactions and earn digital currencies.
Players need gear to play games, and cryptocurrency is a suitable means to purchase such gear. Players in different locations can play live games online and make payments through cryptocurrency.
Users trade cryptocurrencies through exchanges or transfers from their digital wallets. Online Bitcoin casinos accept payments in cryptocurrencies, where gamers can play or trade with digital currencies. Hence, it offers the gaming industry a secure and easy medium to make money.
Gaming companies who consider approving cryptocurrency as a mode of payment for their customers always consider its benefits. When many people use crypto for their transactions, the more they create a demand for more cryptocurrencies.
7 Ways Cryptocurrency will Impact the Future of Online Gaming
With approximately one billion online gamers worldwide, there are several ways in which cryptocurrency could impact the online game industry in the future.
The impact of crypto is already apparent and can only improve in the future.
Cryptocurrencies enhance players’ experience and benefit developers in many ways.
Here are a few ways cryptocurrency could impact the future of online gaming:
Monetization of games
The ongoing evolution in the game industry has its effects on both game players and developers alike. Developers are innovating new ways to earn via their games, while players are becoming more comfortable spending on those games.
Online game innovators and developers can modify how they generate revenue in their games. When players can earn by playing alone, developers are no longer forced to depend on less effective means like in-app purchases.
Players are more inclined to spend more time on the game to earn more, while developers create more alternatives to already existing ways they generate money from their games.
Transforming Virtual Currency into Real-world Money
Another possible benefit of integrating cryptocurrencies is facilitating gamers to make real money from the games they play.
Some businesses are reaping the benefits of incorporating a system that allows their players to earn usable cryptocurrency. More gamers stay glued and can’t get enough of their games.
Real or actual ownership of funds means you can use your asset anytime you need to without restrictions. People love to fully control their assets.
Cryptocurrencies like Bitcoin and Ethereum allow their owners to own their funds and use them for transactions in different locations with little or no barriers. Ownership of cryptocurrencies is a desirable asset.
The idea of true ownership also means that you can choose to trade digital assets with other players. There’s no need for any third-party involvement. Instead, you can sell or transfer directly to another player on the blockchain without delay.
Converting In-game Assets to Real-world Assets
A potential benefit of incorporating blockchain technology in online gaming is the value in-game assets gain. Players can easily change their In-game assets to real-world assets giving them value in the real world.
Owned assets can be retained for future games and retain monetary value outside the game, enabling you to transfer its worth to another game. Most games have their gears. Crypto allows gears to have value within the game they were bought for and transferred to other games.
Better security for players
Blockchain provides gamers with an outstanding level of security for their digital assets.
Cryptocurrencies help their users stay anonymous by keeping their users’ data protected.
Strangers usually play online games, and most players would want to keep their information and personal details private.
Blockchain technology helps keep players’ data private because it is encrypted. Encryption implies a way of converting data into an inaccessible code for anyone without the decryption key.
In the absence of a central server for data storage, there is no obvious site for fraudsters.
Promoting Trade Between Gamers
Integrating blockchain into the online game industry will allow a more transparent and safe platform for gamers to trade with each other.
Aside from just playing games, players can easily trade between themselves— they can buy, sell and earn, which is a win-win situation for gamers and developers.
Replacing Traditional Card-based Online Transactions
Developers depend on financial organizations for their transactions. Integrating cryptocurrency into the online games industry is the best way to eliminate this dependence.
Other transaction methods allow developers to choose payment options for their games. Players can make in-game purchases from other players or developers.
Cryptocurrencies also provide a practical means of enabling uniform prices regardless of the location of players.
Other ways cryptocurrency can affect online gaming
Cryptocurrencies facilitate instant transactions. It is an apparent justification for promoting cryptocurrency in online gaming. Crypto transactions are quick and immediate. Whether in a very distant location, you can easily send and receive payments without bank accounts without barriers.
Ability to Play Anywhere:
Travelers can play on any device, irrespective of their location. Once the game accepts Bitcoins as its payment method, you can go ahead and play with no restrictions.
Safe and Secure:
Safety is the best benefit of playing with cryptocurrency. Details are stored in a network and kept safe from hackers and scammers.
As more people use cryptocurrency as a payment method, the demand increases, and the cycle will continue.
More for Your Money:
Using cryptocurrency is cheaper than credit cards and bank transfers. Crypto transactions don’t involve any hidden fees or extra charges. Users enjoy simple and cost-effective transactions.
Adopting cryptocurrencies in online games removes handling expenses and exchange charges as it is a direct transaction between players, eliminating intermediaries.
It is favorable for both players and game developers. Players get better value for their money, and developers increase their earnings.
Anonymity and Privacy
Many online game players have issues with data privacy because websites generally request personal details, which results in reluctance among players concerned about their data storage.
Cryptocurrencies provide websites the means to prevent requests for users’ data by instantly confirming transfers of cryptocurrency by the public blockchain. Thus, the adequate security of user details further lessens the risk that personal information will be endangered.
Wrapping Up the seven ways cryptocurrency can impact online gaming.
Cryptocurrency is the game changer for online gaming, and its impact is already apparent. It is like a motivation to “play to earn” games.
Gaming is a large industry with an expected investment of about $128 billion in 2020.
Gamers use cryptocurrencies like Bitcoin as a payment method to fund in-game assets, eliminate ads, and buy other gaming resources from the game or other gamers.
Crypto is here to stay, and its impact on online gaming is not farfetched. Shortly, a larger percentage of online game platforms will incorporate cryptocurrencies into their game facility.