The emerge of the crypto gaming market
The gaming industry is one that thrives from the development of technology. What started out with a fascination with arcade games in the 60’s swiftly developed into personal computer hobby culture of the 70’s. From here, home video game consoles began to dominate the market, shaping the futuristic industry we know today where not only can we play on home video game devices, but also mobile phones, tablets and streaming platforms.
In 2018, the global video gaming market was worth approximately 115 billion US Dollars, yet this figure is expected to surpass $138 billion this year. The Year on Year growth of the industry has been mobilised by new and continuing technological developments that offer players more flexibility to play when and where they like and an overall enhanced gaming experience.
Yet, the gaming sector has been cautious in utilising the latest technologies for fear that they would be just a phase. Take VR technology for example, the first VR headsets had a significantly high barrier to entry. They were expensive, rare to come by and mainly used in the business world for the likes of luxury experiences and assisting in architecture projects. Yet today, nearly 1 in 5 consumers in the US use the technology.
Along comes cryptocurrency
Unlike other gaming technologies that have saturated the market at a more cautious pace, cryptocurrency is taking the industry by storm. On the surface, cryptocurrency started to become a widely accepted form of payment for the likes of online gaming console games and casino games like megaway slots. As cyber crimes are on the rise, crypto current has offered a much safer and more anonymous way to make payment for online gaming, however we’re only just starting to tap into the true potential of cryptocurrencies for gaming.
Let’s take a look at just how popular cryptocurrencies are currently and how they are impacting the gaming market.
The popularity of cryptocurrency
Cryptocurrency is a digital form of currency that can be used to make payment. It works via blockchain technology in which each transaction has a unique code that makes it difficult to change, hack or cheat the system. Every time someone makes a transaction with cryptocurrency, the transaction is distributed and duplicated across a network of computer systems on the blockchain. Every time a new transaction occurs, the record is added to the participants ledger, which is then added to the decentralised database, know as Distributed Ledger Technology.
As of mid 2020, the cryptocurrency market cap was $265.545 billion. The global blockchain market is expected to be worth $23.3 billion in two years time. By comparison, the global video gaming industry is set to be worth $200 billion by 2023, indicating that while cryptocurrency is still in its infancy, there’s some incredible potential for the two industries to co-support each other’s growth.
Cryptocurrency enters the gaming world
While cryptocurrency is still in it’s infant stages within the gaming world, that’s not to say we’re not already seeing benefits from it. As a form of payment, cryptocurrency is already offering significant convenience and safety benefits to the online community in the following ways.
Cybercrime is a given in the world we live in. As devices become smarter and more interconnected, the risk of these networks being exploited by cyber-criminals also rises. We only have to look at the Microsoft Exchange hack that took place recently to see just how vulnerable technology can make us.
Yet with cryptocurrency, online gamers can deposit money into their account without the fear that their credit card details will be stolen. The nature of blockchain technology means that users’ credentials are safer as there are far fewer loopholes for this type of payment to be exploited. The anonymity of each player means that users don’t need to worry about credit card fraud or identity theft. *sigh of relief from the readers…
Ever hit the jackpot on that slot game you’ve been playing for the last 3 months, only to have to wait another few weeks for your identity to be confirmed and your payment to clear? Well with cryptocurrencies, that’s not the case. As a decentralised currency that isn’t regulated by any central bank, transactions can happen immediately.
The future of crypto gaming
While cryptocurrencies have significant methods to the safety and integrity of players, these benefits are just the surface of the iceberg in terms of its potential. While in its infancy stages, developers like Enjin Coin are now beginning to create games that operate purely from cryptocurrencies and offer in-game currencies that allow players to buy and trade game items.
Kryptokitties is one of the most popular games to be benefiting from this technology so far. Players are able to create a kitten, breed and sell it, and guess what? The kitten is worth real crypto money. The most expensive kryptokitty so far has sold for a staggering $117,000 dollars.
Cryptocurrencies and online casinos
While we may have only just discovered the tip of the iceberg in terms of the potential of cryptocurrency, it’s clear that the gaming industry is already benefiting significantly. Gaming developers are continuing to make developments in terms of what the technology can do and there’s set to be some exciting developments to come. While we’re already seeing games where player items can have real market value, the potential for developing the online casino sector is also huge and will no doubt transform the experience entirely.