The application of cryptocurrency in blockchain technology is finding favor among different customer groups across the globe. In addition to commerce and technology businesses, the gaming industry is also betting big on these new digital technologies. According to one estimate, the revenue from the betting industry is expected to reach $635 million by the end of 2022, which means the industry is estimated to have a growth rate of around 6%. Some of the other encouraging factors fuelling the growth of the gaming industry include increasingly liberalizing government policies, high earning potential of the gaming segment, and wider adoption of gaming by people across the globe.
Contribution of Bitcoin
Along with the reasons mentioned above, the adoption of cryptocurrencies, especially Bitcoin, is significantly fuelling the growth of the online gaming industry. Cryptocurrencies are decentralized in nature which means they are not controlled by any government or federal agency. Further, the currency is universally accessible and unlike the other fiat currencies, there are no time, place, and space limitations attached to these coins thanks to their digital nature.
This universal accessibility is a very important factor for the online gaming industry as people can participate from any part of the world. The use of digital money is also profitable as there is no transactional charge involved in the process, translating into more savings. Bitcoin transactions, unlike the payments processed by banks and financial institutions, will not involve the processing charge. This means along with universal access, both gaming companies and gamers will be benefited from this cost-saving.
Role of Blockchain
The blockchain technology has also contributed enormously to the popularity of online gaming. As we all know, digital coins have the underpinning of blockchain technology. Blockchain is nothing but a distributed ledger that works on the principle of nodes. It is immutable and tempered-proof, which means nobody can pull a fast one when it comes to transactions underpinned by this technology.
This high safety and security is a reassuring factor for gamers, making them confident that their transactions will not be hacked or fraudulently processed by any third party. Moreover, gamers using digital coins powered by blockchain need not furnish any information related to their personal or account details. These transactions are done in digital money and these leave no trace behind further dismissing the possibility of hack or scam. Further, there is no reason to be worried about any legal complication as players remain anonymous if they choose to pay through digital money.
All features of Bitcoin and blockchain technology mentioned above, such as universal accessibility, no third-party involvement, and high safety and security are really going down well with online gamers. Sensing that these factors are highly relevant for players, more and more online game companies are incorporating the feature of cryptocurrency payment in their options list. It is a Win-Win situation for all the stakeholders involved and even governments realize that they can earn a handsome amount of tax revenue from legalizing the gaming industry. In sum, we are at the cusp of the online gaming revolution with both cryptocurrency and blockchain technology holding the baton for this change.