In 2019, the gaming industry was worth approximately $151.55 billion and was projected to grow at an annual rate of 9.17% between 2020 and 2025 to reach $256.97 billion. For an industry growing at this rapid rate, crypto presents trending technologies and innovations that can be used to facilitate and boost this growth.
Cryptocurrency is a Replacement for Traditional Card-Based Online Transactions
The primary way cryptocurrency has changed the gaming industry is by replacing card-based purchases and transactions. Games are technically demanding platforms that require developers to constantly leverage innovations to enhance players’ experiences. One significant aspect that makes crypto an appropriate technology for gaming is its innovative features allow developers to leverage new opportunities instead of merely focusing on improvements. The use of digital currencies represents such a unique development/opportunity.
Traditionally, developers rely on external payment mechanisms such as cards to facilitate transactions, including in-game purchases. By integrating crypto technologies into gaming, the developers can create new online currencies that allow players to purchase gear, cosmetics, and other game-related products for each other. Having a digital currency grants the developer some sense of control and can help standardize prices that are often affected by regional pricing.
Crypto gaming can also allow game players to purchase or sell cryptocurrencies through exchanges from wallets. For example, a player can send cryptocurrency units to another player using their digital wallets. The receiver can use these units to purchase game-related items or convert them to other digital currencies or real-world money.
The Current Gaming Population is Inclined towards Owning Crypto
The rapidly growing crypto gaming industry has attracted a relatively younger population who are tech-savvy and interested in innovations. In 2020, the crypto gaming industry generated approximately US$321 million, with around 41.9 million gamers owning crypto. Millennials aged 21 to 38 years made up the largest age group of gamers holding crypto accounting for 38%. The research by Tripple A indicates 80% of gamers who own crypto are willing to use cryptocurrency for gaming purchases, while 67% wish for more opportunities to use cryptocurrency in gaming. These statistics indicate that online game players provide a market for digital currencies that can be leveraged to implement new innovative gaming opportunities.
Why Are Gamers Interested in Crypto?
Multiple reasons can explain the gamers’ interests in cryptocurrencies. Let us explore a few to understand why crypto is necessary for gaming;
i). Crypto assets are an easy and safe way of making money online.
Most gamers are willing to trade their virtual assets for a currency that they can use to sell and buy on other platforms. With cryptocurrencies, the players can collect and sell virtual assets that are exchangeable in all parts of the world. Digital technologies have significantly interconnected the world, increasing people’s capabilities to trade in other regions besides their own. Thus, crypto gaming allows players to be part of global trade through online transactions of tradable crypto-assets.
This ability to transfer virtual assets significantly differentiates crypto games from traditional games. For instance, games have always been centralized where the developer owns the coding, characters, skins, and weapons. As a result, these elements cannot be shared, transferred, or used for other games. However, with digital wallets and crypto assets, players can now share.
ii). Crypto games give players traceability and ownership
Crypto games are developed on blockchain networks where all the connected computers have access to the same data. This interconnection leads to decentralization and provides players and creators with similar powers and controls. Consequently, the players own the in-game currency, weapons, skins, characters, and cars, which they acquire throughout the gaming process.
When the whole game is created on the blockchain, all interactions and transactions within the game are verified and stored as blocks in the blockchain. In this case, players and developers can trace the movement of virtual assets or transactions of interest.
iii). Crypto games expand gaming business models
Traditionally, games were monetized through affiliate or referral marketing, subscriptions, in-app purchases, skins, in-app advertising, and premium currencies. Integrating blockchain technology creates new avenues of generating revenues. For example, developers can charge a specific fee for selling digital currencies that offer the buyer any permanent benefits. With the decentralization and increased players’ ownership of items, the developer can charge a certain percentage for the direct sale of in-game items among players.
The role of crypto in the world of gaming is to make it convenient, smooth, and trouble-free for players to access games quickly. It decentralizes gaming processes and removes bureaucracies that govern essential aspects such as payments, information flow, and ownership of digital assets.
Not only is IXFI offering an optimal and secure way to store and trade your crypto, but we have big plans for the future of gaming on our platform. So, especially if you’re an avid gamer, start your crypto journey now with Your Friendly Crypto Exchange, IXFI.
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Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
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