Cryptocurrency and the gaming industry are both extremely closely related. Members of both scenes are typically tech savvy and quick to adopt the latest developments in technology. Along with this, the cryptocurrency and gaming industry have both seen a sudden explosion in popularity in recent years.
Events like The International and major esports leagues, have propelled gaming into the mainstream consciousness. Meanwhile, the surge in Bitcoin and other cryptocurrency valuations several years ago have had investors and punters alike scrambling for a piece of the pie.
With technology permeating every aspect of our lives, it should come as no surprise that the fates of gaming and cryptocurrency are intertwined. Here’s why we believe that the gaming industry will drive cryptocurrency adoptions.
Their target groups
Millennials and Generation Z are unlike any other generation. Both generations grew up surrounded by technology and both are fast adopters of new technology. From Youtube streaming to competitive gaming, both of these generations have been able to successfully adopt and monetize the power of the internet.
Their ability to quickly adapt to and accept new technology means that they are more likely to accept cryptocurrency as a medium of exchange. This is in contrast to many members of the previous generation who have consistently expressed distrust at non-physical form of currency.
For example, as you may have witnessed in some eToro reviews, the trading company has been trying to target gamers and have even a copy portfolio called InTheGame. They also incentive people to invest in gaming companies and we can understand why.
Gamers understand cryptocurrency
Cryptocurrency is in fact much older than most of us think. While Bitcoin and Ethereum may seem like foreign concepts, to gamers cryptocurrency is as old as online gaming. For example, Blizzard’s wildly successful MMORPG World of Warcraft had its own digital economy which required players to earn digital gold in order to purchase items.
Players also had the option to purchase in-game digital currency with actual fiat currency. Alongside this, players also had to pay a monthly fee each month to subscribe to the game. It is through this that we can understand why gamers are able to understand the concept of digital currencies.
To an outsider, using digital gold to purchase an item like a sword or bow with no actual physical presence may seem odd. But for a gamer who has invested time and effort into the world, the exact opposite is true.
Game developers are beginning to recognize the power of blockchain technology
As we mentioned earlier, most online games have their own form of in-game currency or tokens. With the rise of mobile gaming, the freemium concept has begun to gain traction. To the uninitiated, the freemium business model provides a game or service for free but requires payment for additional features and items.
This can be seen in the wildly popular Clash of Clans, a free-to-play game which utilizes freemium mechanics. In order to progress in the game, players have to earn rewards or currency in order to purchase upgrades for their units. In order to earn these rewards, players have the option of either repeatedly playing i.e. grinding or using fiat currency to purchase in-game currency.
Recognizing the popularity of mobile gaming, developers have begun implementing their own form of in-game digital currencies. By earning or purchasing these digital currencies, gamers are able to upgrade their abilities or units in order to progress.
Examples of this can be seen amongst gaming startups such as Clan Play and CocosBCX who offer their own form of digital currencies to players. These digital currencies can be used in-game or even traded on exchanges. While it may seem outlandish, the idea may not be all that far-fetched. Mobile games draw in millions of players at a time and there is certainly no shortage of players willing to pay to progress in-game.
It should come as no surprise that gamers will most likely lead the charge for the mainstream acceptance of cryptocurrencies such as Bitcoin. This will be further encouraged by the fact that gaming developers themselves have also chosen to include digital currencies in one form or another as part of their offerings.
Benjamin Lee is a self-employed professional copywriter with nearly a decade of experience writing. Graduated from Monash University with a degree in Accounting and Banking and Finance. Specialist in producing top-quality articles on cryptocurrency and finance. His articles have been featured in a variety of business and finance publications.