Cryptocurrency is the new currency of choice, and it’s transforming the gaming industry. Gamers are no longer confined to mere clicks and controllers. They are now taking good advantage of virtual exchanges where Altcoins reign supreme. This seismic shift in gaming consumer behavior is not only reshaping the way they spend their hard-earned cash but is also influencing the very fabric of their gaming experience.
How Today’s Gamers are Changing the Game with Crypto
Non-crypto transactions can be easy, secure, and instant, making digital purchases convenient and the content immediately accessible. However, there are some drawbacks, especially when it comes to privacy issues. Wallets that are specific to platforms such as the Steam Wallet, PlayStation Store Wallet, and Xbox Credits store funds available within a chosen ecosystem, ready to make purchases instantly.
Multi-game currencies can offer flexibility to players to use their assets across titles and platforms, and are also gaining popularity. Razor Gold, Karma Koin, and Nexon Game Card are all popular multi-game gift cards where players can purchase credits that can be redeemed in multiple games.
Adopting the Play-to-Earn Gaming Model
Remember inserting coins in arcade machines to play games? Cryptocurrency is revolutionizing again, this time in the gaming industry. Play-to-earn gaming models and actual digital ownership are coming to life. In traditional games, purchases can only be used within the game’s environment. For online casino games, members have to make deposits before playing the games, otherwise they can’t spin the reels. Crypto games allow players to truly own, trade, and monetize their gaming assets in other markets.
Non-Fungible Tokens
Non-fungible tokens have brought actual ownership to gaming. They are more than digital collectibles. You can now own, trade, and sell your in-game items across platforms. You can make private in-game purchases and maintain the copyright and ownership of these custom gaming items. Through smart contracts, you can sell or trade them to other gamers.
Crypto Can Reach More Gamers
Gamers all over the world can participate, trade, and earn without the need to think about exchange rates, bank approvals, or hidden fees. By accepting cryptocurrencies, game developers and owners can finally break down geo-boundaries, reach new markets, and develop new business models, which helps them grow and thrive at a global scale. Some online gaming operators flag and block online gaming purchases, which can cause tremendous frustration, not to mention issues with the credit score.
Also, blockchain also protects gamers from fraud and inflated transaction fees. In addition, smart contracts provide a transparent and automated way of transactions. They also eliminate intermediaries, which generates even more value for players and developers. In addition to the lower fees, blockchain transactions are processed instantly, so there is no hold-up for players to play their favorite games.
Some Challenges Still Exist
Crypto gaming has been a new addition to how people access games, but there are some issues with it. The first is the volatility of crypto prices. The value of goods a player can purchase can fluctuate, making the price for in-game purchases unpredictable.
Also, the laws and rules set in a country could lead to compliance challenges or prevent access.
There are still concerns about the differences in regulations across nations that can pose challenges to the payment process. The United States allows the use of cryptocurrencies, but they are under the watchful eye of financial boards and anti-money laundering laws.
India allows the use of crypto, but any earnings from its trade are subject to a 30% tax. China has put a total ban on the use of cryptocurrencies. Also, if gamers don’t properly secure and set up the appropriate digital signatures, it can lead to loss of funds or threats to in-game assets.
Bottom Line
Digital assets based outside the crypto sphere still dominate the space of gaming payments. This is because they are more familiar and have the brand recognition of being secure and user-friendly. However, an increasing number of users are embracing crypto, especially its incredible global reach. The future most likely lies in a more sophisticated hybrid payment system that evolves how gamers pay, earn, and trade.