Bitcoin is now struggling but what cryptocurrency offers is starting to be evident for the gaming industry. Blockchain and cryptocurrency are both really huge topics that were covered at the San Francisco Game Developers Converence. 28,000 industry professionals participated with blockchain and cryptocurrency both being really important topics covered.
By the year 2020 it is expected that the gaming industry will reach a value of $143 billion. This is why DMarket, a global blockchain technology using marketplace with a virtual gaming focus, hosted a gaming and blockchain panel discussion. The aim was to provide explanations about why blockchain technology and cryptocurrency are important for the current state of the gaming sector.
Gamers Understand Crypto Technology
According to BitGuild CEO Jared Psigoda, the main concepts behind digital currency resonate with the entire gaming community. He argued that gamers understand cryptocurrency really well since virtual money is so often used in games. The best example of this has to be World Of Warcraft since it had a digital gold buying market that even reached a value of $100 million at one point in time. Using real money to get virtual currency in games is a very common action in gaming.
Since fiat currency can be used to buy items in games, even free to play games can be expensive. Gaming companies manage to generate huge revenue because of digital currency.
Keep in mind that the gaming industry reached revenues of $108.4 in the year 2017, with mobile games actually leading the charge as highest earning sector.
At the moment we see blockchain tech based games gaining traction since it allows the gamers to utilize cryptocurrency in order to trade gaming items, with Refereum being a common example that keeps gaining market share right now. Gamers no longer have to utilize fiat currency as they shop from game developers.
Cryptocurrency use in gaming also helps solve the problem associated with in-game asset ownership as the blockchain games tokenize gaming items. Basically, as gamers buy assets, they are in sole possession through digital wallets until traded, similarly to all cryptocurrencies.
Cryptocurrency Use In Fantasy Sports Games
The value of the fantasy sports games market is around $7 billion at the moment. With this in mind it should come as no surprise to see cryptocurrency getting involved.
MyDFS, fantasy sports platform that is blockchain based, now uses a proprietary token and blockchain to offer transparency. Through the use of blockchain technology all users are allowed to see the way in which scoring is applied. Through smart contracts the users experience faster payouts than through the regular fantasy sports platforms around the net.
Investors Are Now Interested
The gaming community is constantly showing interest in the blockchain based games so investors and major venture capitalist companies start to look at decentralized gaming platforms. Frak Fu, Meitu managing director, invested $2 million in MyDFS. Also, DreamTeam saw investments made by Mangrove Capital Partners. We also know that mytime got funding in value of $3.5 million from a number of private investors.
The gaming community can be a huge promotion opportunity for blockchain technology and cryptocurrencies. Blockchain games are gaining interest from both investors and gamers. This can actually be highly beneficial for the entire industry. We are looking at declining prices for major cryptocurrencies but as the gaming community keeps getting active users in blockchain games, it can change. Basically, gaming can be a huge industry that would add validity to cryptocurrencies.