Cryptocurrency performs several functions in the gaming world and brings many exciting benefits. Although digital assets are popular for revolutionizing the financial industry and disrupting much of the traditional market, they have made quite the impact in gaming, especially with the infusion of blockchain technology.
Traditional gaming is still very popular and more widespread than crypto-based options. However, there are many reasons for players to consider paying more attention to games that support crypto. While crypto gaming is essentially an offshoot of the traditional sector, with many more similarities than differences, it does seek to improve existing traditional offerings by tackling common limitations.
Payments in Gaming
According to research, about 3 billion people globally play video games. Stats show nearly 14.1 billion mobile game downloads on iOS and Android devices in 2021. Furthermore, forecasts for gaming are bullish as the gaming industry is expected to rise at a compound annual growth rate (CAGR) of 12% between 2020 and 2025. Nonetheless, the gaming sector already handles many in-game and external transactions.
For instance, a report revealed that US gamers spent $60.4 billion on games in 2021, up 8% from the $56.1 billion recorded in 2020. If they become widespread enough, cryptocurrencies can considerably sustain much of this total, especially with in-game purchases.
Many games have options that allow users to create better characters or acquire much-needed accessories by making in-game purchases via microtransactions. Users can buy currency, skins, weapon upgrades, virtual items, and other assets that help them progress in the games. Crypto purchases easily support these microtransactions and make them more seamless. Transactions powered by digital assets help to streamline and improve the purchase process since they are not hindered by limitations typical of traditional payment systems.
Customer Acquisition and Retention
In addition to simplifying in-game payments and microtransactions, cryptocurrency in gaming helps to promote inclusivity. Since these payments have no geographical limitations, platforms can welcome all interested players and generate more revenue as players buy games or pay to enhance their gameplay.
The effectiveness of cryptocurrencies in customer acquisition is evident with online casinos that already attract a broad range of customers because they support crypto payments. Several of these casinos, like those listed in readwrite.com, allow players to make deposits using regular traditional options, in addition to cryptocurrencies like Bitcoin (BTC). These casinos also attract players by offering attractive bonuses, sometimes up to 360% of the initial deposit or up to 1 BTC.
As for retention, cryptocurrency is one of the best ways to run rewards and loyalty programs. Game developers usually offer incentives to players who invest hours playing a game, reach specific milestones, or join tournaments.
Transparency and Fairness
The blockchain’s inherent immutability helps to ensure that all crypto transactions are transparent and secure. Players who make deposits, purchases, or other transactions can confirm that their transactions were successful and that they received value for their money. The blockchain also limits the possibility of foul play by the game or its team of developers because decentralized networks can be viewed or audited by nearly anyone. In addition, smart contracts can help to automatically enforce game rules and eliminate the possibility of cheating or unfair gameplay.
Ownership and Governance
The best way for players to feel a sense of ownership is to offer in-game assets as non-fungible tokens (NFTs). These NFTs may be skins, new characters, or assets that players can use for themselves or trade with others in the community. The assets may also generate real-world value or importance so players can sell them on external exchanges or NFT marketplaces.
Will Crypto Overtake Traditional Payment Methods in the Near Future?
There are several predictions about the future of crypto, with most of them optimistic about digital assets and their effects in multiple sectors. However, analysts are undecided about crypto overtaking traditional payments. Much of this uncertainty is due to several limitations like volatility, regulatory concerns, and technical barriers.
As the crypto space evolves, there will likely be more use cases for cryptocurrency. The gaming sector is already gaining significantly from crypto adoption and is one of the best-positioned sectors to facilitate the widespread use of digital assets. If crypto eventually overtakes traditional payments, gaming will likely be one of the sectors at the forefront.
Source: https://www.cryptopolitan.com/what-is-the-role-of-cryptocurrency-in-the-gaming-world/