The use of Bitcoin is gradually becoming popular in the world of online gaming for good reason. Since its creation in 2009, Bitcoin has functioned as a secure means of storing and exchanging value. This has led to its use as an alternate form of money and has spurred a game culture of investment around its existence.
However, Bitcoin did not take off until recently and it was mainly used by software developers and cryptographers at the time. When it was finally adopted at a more mainstream level, it managed to exceed all predictions when it reached a peak value of almost $20,000 in December 2017. To date, it has proven to be one of the most innovative technologies completely changing a vital aspect of internet security and financial autonomy.
This is emphasized by Bitcoin’s emergence in a period of global economic instability, following the financial crash of 2008. At this rate, it has the potential to disrupt entire industries, governments, and economies. But for this to happen, more businesses have to integrate the technology with their operations to promote large-scale adoption.
Although Bitcoin has carried out the initial purpose it was created for, the cryptocurrency industry has seen positive change and modifications that make it suitable for other uses. Across the board, industries like shipping and real estate have been able to implement the use of these digital currencies in their day-to-day operations. The gaming and gambling industry are also among those that have found a way to put the technology to good use.
The Rise of Bitcoin Betting and its Influence on Online Gaming
Bitcoin’s continuous growth and popularity in the gaming industry can be traced back to its integration with popular games like blackjack, slots, Plinko, and dice in online casinos. Some of these casinos deal solely in BTC and make the deposits and withdrawals process easier and faster since they are processed directly on the Bitcoin network.
Payments are also easily verifiable while users are given full anonymity. Like the casinos, the online gambling industry also benefits from the fast and efficient way that cryptocurrency transactions are carried out.
The Bitcoin is aiding the growth of the online gaming market by drawing users from various geographical locations. This is why it’s making such a huge impact on the gaming market. Both Bitcoin and the gaming landscapes have had a long relationship made stronger by the establishment of Bitcoin casinos and the acceptance of Bitcoin betting in regular casinos. But the true question lies: how ready is the gaming industry for the future impact of this change.
The online gaming industry is ripe for a system that provides the benefits that Bitcoin provides, due to the security and accessibility issues that plague it. From virtual reality to artificial intelligence, the industry has always been one of the first to adopt emerging technologies. This is also evident in its adoption of cryptocurrency as a way to provide a safer and more efficient gaming process for players. With the influx of Bitcoin casinos in the gambling industry, it is no surprise that adoption is also taking the online gaming industry by storm.
How Bitcoin is Causing a Scene in the Online Gaming Community
The whole point of Bitcoin and Blockchain, the technology behind it, is to move power from the hands of central authorities into that of the consumers. While this is mostly focused on the financial industry, it is achieving the same results in gaming, too.
Gaming websites like FirstBlood allow players to place bets and challenge the field with the help of oracles and smart contracts. Another example is Blockchainga, a website that regularly develops games that allow players to trade their items using an external blockchain.
The introduction of decentralized technology into the online gaming industry gives more power to the gamers. It gives them more control over the gaming process as well as flexibility when it comes to rules and limitations. Overall, it gives them the chance to make gaming and betting as easy as possible.
Bitcoin brings expectations of higher revenue and adoption in the online gaming industry. The industry userbase has already grown to three times its old value in the last few months, proving that Bitcoin will boost patronage of online gaming. This result is not surprising since the benefits of Bitcoin betting are leagues ahead of those offered by conventional online gaming.
Benefits of Bitcoin Betting in Online Gaming
Bitcoin is a perfect match for the online gaming industry due to how unique its technology is. Relevant stakeholders in the industry such as players, operators, and affiliates stand to gain several important benefits from this change.
The benefits include:
- Easy Setup: A Bitcoin betting business is far easier to start than its regular online gaming counterpart. There are no licenses involved and it is as easy as utilizing Bitcoin wallets which are generally optimized for quick transactions. Since Bitcoin betting involves transferring a player’s earnings straight to their wallet, the issue of currency conversion does not arise.
- Low Fees: Bitcoin betting websites and other online gaming sites that use BTC either do not charge transaction fees or keep them relatively low. There are no banks or third parties to satisfy the transaction, so a lot of the hassle associated with the conventional way of transferring funds is eliminated.
- A Wider Market Reach: The use of cryptocurrency in online gaming exposes the market to a wider userbase from the pool of cryptocurrency investors. This will help its growth rate in the long run.
- Non-reversible Transactions: game operators dread chargebacks, which can occur when there are problems with the payment system in place. Since Bitcoin transactions cannot be reversed, chargebacks can be avoided.
- No Geographical Constraints: Players can access games online and pay from any location in the world due to the absence of geographical limitations on the Bitcoin network. With fiat currency, users would have to convert their money and pay excessive fees on cross-border payments.
- Anonymity and Privacy: The decentralized nature of the Bitcoin network allows its users to remain anonymous without compromising the authenticity of a transaction. These transactions are easily verifiable on the blockchain at any time. Online gaming sites have adopted this approach and typically do not request personal information outside a username, password, email and Bitcoin wallet details.
Bitcoin betting is growing at a fast rate, just like the general adoption of the virtual currency. However, it has a long way to go before reaching its peak. New developments must arise within the industry as far as regulation is concerned because it may only be a matter of time before cybercriminals begin to target these sites like they’ve done with cryptocurrency exchanges in the past.
Despite the need for further development, it is apparent that Bitcoin already has a huge influence on the online gaming industry.