Although more than a decade has passed since the paper about Bitcoin by the mysterious Satoshi Nakamoto, cryptocurrencies are still relatively in their infancy. However, they are becoming more popular and have found their way into lots of different industries. Cryptocurrency has become an accepted method of payment in the travel industry for flight tickets and other travel-related purchases.
The media and entertainment industry has begun accepting payment by cryptocurrency for downloading music, films and other forms of entertainment. Trading platforms are starting to assist users in buying, selling and trading cryptocurrency, and payment platforms are beginning to enable businesses to accept cryptocurrency as a form of payment.
The above are just a few examples. One further industry that cryptocurrency and blockchain, the tech that facilitates the use of cryptocurrencies, have found their way into has been the gaming industry. Below is a look at the rise of cryptocurrency and the impact of digital currency on online gaming, especially at the use of it in online bingo, and at the pros and cons of digital currency in gaming.
What you'll learn 👉
The rise of cryptocurrency
Cryptocurrency has grown spectacularly and boasts a powerful potential to transform a wide number of industries. According to PriceWaterhouseCoopers, there are around 14 billion Bitcoin in circulation (although there could well be much more since the time of the company’s original research), and a lot of the market capitalization is driven by investors speculating on the future potential of the cryptocurrency.
The crypto market got off to a roaring start at the beginning of 2023, but global economic conditions and inflation saw a slight downturn materialize in the market. The US and the UK are key markets that have an impact on crypto markets. Towards the end of July 2023, cryptocurrencies began to recover. The Fed lowered the base lending rate to between 5.25 and 5.50% was one reason for this. Other measures against inflation have also helped the market to begin bouncing back.
The impact of cryptocurrency on online gaming
One of the biggest impacts of cryptocurrencies on online gaming is that blockchain technology has enabled gamers to play on decentralized platforms where there can be no intervention from censors or from governments. The platforms are more transparent and more secure and are built on a robust infrastructure.
Another has been the creation of new revenue streams. Game creators now have the chance to construct new business models and revenue streams if they make the most of the opportunities digital currencies and blockchain technologies offer them. Tokenized in-game products and nonfungible tokens (NFTs) are two.
Importantly, crypto has brought players more safety and security. They don’t have to supply their personal details, thanks to the extra layer of security usage adds. No one can access their data or steal it.
Crypto technology also provides reassurance that the gaming is fair. This is because the decentralized nature of the technology stops anyone from interfering in the outcome of the games. It builds trust and creates transparency for players. They can have full confidence in the integrity of the system.
The impact of cryptocurrencies on online bingo
The crypto markets aren’t the only place where it’s possible to make money from crypto currencies. Operators in the world of online bingo are realizing the opportunities open to them by incorporating crypto into their business operations and some are beginning to take advantage of them.
However, despite the rise of cryptocurrency payments for online bingo games, many providers are sticking with traditional payment methods of debit/credit card and the odd e-wallet such as PayPal. Take Costa Bingo for example, a reliable and reputable bingo provider that do not accept cryptocurrency payments, however accept major payment providers such as Mastercard, VISA and PayPal.
So why are some providers accepting cryptocurrencies and why are some not?
How using crypto benefits and restricts players and online gaming operators
The transparency of crypto technology is a win for operators, players and regulatory authorities. Not only can each party be sure that the results of a game are fair, but the technology also helps to provide an overview of the financial transactions and operations of an operator. This enforces compliance.
Crypto technology facilitates smoother transactions between players and operators because there is no need for an intermediary, such as a bank. Payments are quick and not subject to any fees. The transactions are also encrypted so that no one can tamper with them. The use of smart contracts means operators can make payments automatically without the need for human intervention.
For all the benefits of using cryptocurrency in gaming, there are some disadvantages though. Concerns still exist around the security of crypto technology because it is still relatively new. Lack of regulation is another concern and can make it hard for anyone who uses digital currencies to apply their rights and secure payments.
Cryptocurrency has had a strong impact on the online gaming world, bringing a range of benefits to players and operators. If you’re gaming but making payments with fiat currency, you may prefer switching to crypto for future gaming sessions.
