Cryptocurrencies have taken the world by storm. Bitcoin, the world’s most sought-after cryptocurrency, has dominated the market since its introduction in 2009. Fast forward more than a decade later, cryptocurrencies have captured the attention of investors, bankers, and the general public.
One industry that has become a natural fit for cryptocurrencies is gaming. Specifically, multiplayer video game platforms and online casino games have found an apparent ally in cryptocurrencies. Given this context, it's worth looking at how cryptocurrencies are used in the gaming industry.
Cryptocurrencies Are Perfect for the Gaming Industry
Cryptocurrencies offer a safe and anonymous payment platform. In-game purchases generally require third-party processors such as PayPal or Venmo. Credit card operators like Visa and MasterCard also charge transaction commissions and fees.
Cryptos eliminate the need to pay commissions while offering a secure payment processing platform. Users no longer need to worry about exposing their data online. Cryptocurrencies’ inherent security mechanisms avoid unlawful information sharing. Consequently, cryptocurrencies have become popular with gamers looking to secure their data.
Types of Games Using Cryptocurrencies
The iGaming sector has seen a boom in cryptocurrency use. Cryptos are used as part of in-app purchases or the gameplay itself. Gamers can purchase upgrades or features or unlock exclusive benefits.
The sector that has been the biggest surge in cryptocurrency usage is the online casino industry. More and more online casino platforms are accepting cryptocurrencies as payments. Popular cryptocurrencies such as Bitcoin and Ethereum have become commonplace among online casino platforms.
Online casino platforms have increasingly included Bitcoin as a payment method and traditional choices such as credit and debit cards. Online casinos, multiplayer platforms, and single-player games have turned to cryptocurrencies due to increasing demand for transparency, security, and accountability. Cryptos and their exclusive blockchains provide the features gamers demand amid ever-increasing cybercrimes.
Benefits of Using Cryptocurrencies in Online Casinos and Games
The most significant advantage of using cryptocurrencies is data privacy. Cryptocurrencies use exclusive blockchain technology that limits the presence of unwanted individuals. Cryptocurrencies have their blockchain. Other cryptos share a blockchain due to their relatively low market cap.
Beyond privacy, other benefits come with using cryptocurrencies in the online game space.
Third-party payment processors (i.e., credit cards, PayPal, Venmo, Apple Pay) charge commissions for their use. These commissions can range from pennies on the dollar to several percentage points. While these charges may seem insignificant on an individual transaction basis, they can add up over hundreds and thousands of transactions.
Cryptocurrencies reduce, if not eliminate, transaction fees. This situation makes cryptocurrencies a much more appealing method of payment.
Players Can Earn Tokens
Some online games allow users to earn tokens for playing the game. These tokens can then be redeemed for in-app purchases. Allowing players to earn tokens incentivizes them to play games consistently.
For game developers and advertisers, allowing players to earn tokens provides an opportunity to expose the public to new products and services. For example, earning tokens for watching ads has become a popular way for players to get tokens and for game developers to keep players coming back.
Cryptocurrencies foster transparency. As a result, users can see that games are not rigged to favor the house. Instead, players can see that games are fair, whether they win or lose.
Traditional payment methods allow game developers to stack the odds against players. On the other hand, cryptocurrencies show that games are fair, given the blockchain’s internal accountability.
A Final Thought
Cryptocurrencies are here to stay. There is no denying that cryptos offer many benefits that traditional payment methods lack. While it is true that cryptocurrencies have had their ups and downs, bear in mind that cryptos are still in their infancy.
Gamers and the general public can expect cryptocurrencies to continue gaining momentum as the world becomes increasingly digitalized. It will only be a matter before cryptocurrencies replace today’s currencies. Only time will tell what additional benefits cryptocurrencies can offer society.