4 Ways Bitcoin Is Changing the Online Gaming Industry

August 17, 2016

12:37 pm

With Bitcoin already reinforcing its stay as a leading digital currency, it’s important to look into how it has affected several industries on the internet.

Bitcoin has grown to become a selling point for businesses in the online retail and e-commerce businesses, airlines and hotels and many lucrative lifestyle businesses. But for the gaming and gambling industry, it’s a totally different ball game.

How has Bitcoin influenced the online gaming industry?

Anonymity

Upon hitting the mainstream in the Fintech arena in 2009, what quickly drew many adopters to the now high-valued crypto-currency was its anonymity feature. Given that many online transactions leave the buyer exposing too much personal information just to make a purchase left a lot of people uncomfortable.

What the data end up being used for remains unknown to the buyer. But Bitcoin’s anonymity features favors online gambling for a very different reason. Gamblers often have a very serious issue of addiction — some it runs through their career, and as seen with these athletes, it may ruin an illustrious career.

Hence, an online gaming website will strongly favor a crypto-currency as it gives its players the assurance that their engagements are anonymous and secure.

Legitimacy

This is the most important aspect for Bitcoin as a digital currency. After suffering several crackdowns from governments who felt the currency threatens the position of their countries’ actual legal tender, and the never ending berates from speculators that keep beating the price up and down, Bitcoin still stays legitimate.

In a 2015 Telegraph report, the Bank of England thinks the revolution of Bitcoin is the next internet. Virgin Galactic’s announcement of six confirmed Bitcoin space travel customers only affirms that the crypto-currency is a real deal.

This only makes the position of Bitcoin in the gaming industry more appealing. When the industry itself is hoping to get some form of legitimacy of its own, isn’t embracing a winning lone fighter a great step in the right direction?

Price and Fees

Crypto-currencies are usually determined by the currency they are modelled after. This, however, is not the case with Bitcoin. When traded against almost every real currency, Bitcoin comes out as a very high-priced currency to possess.

Certainly, this could also be a downside to its holders — especially large quantity holders. But given the fact that most online gamers prefer to transact their affairs in figures unimaginable to people, a crypto-currency that weighs a lot in a single scoop would be the preferred choice.

Unlike other payment gateway platforms such as PayPal and other checkout processors that charge merchants upward of 5% per transaction and some fees, Bitcoin only charges merchants 1% of their transactions. Consumers, on the other hand, are absolved of any fees.

The Rate of Acceptance

With Bitcoin finally successfully breaking through in China, acceptance of the crypto-currency is soaring. And acceptance of the virtual currency means its value will go up, and this makes it lucrative for online gaming and betting businesses. The more value the currency has, the more profit a betting business is able to fetch from players.

As Bitcoin continues to gain more grounds and recover as a virtual currency, will the betting industry embracing it change the way the world views sports betting and gambling online? While this remains to be seen, my assumption is that Bitcoin can have a powerful effect on any business online.

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Hafiz is an expert freelance writer, content strategist and online entrepreneur. He is also a tech enthusiast who enjoys writing about tech innovations & startup tips. He is a contributor at Huffington Post, Business2community.com, and hr.com, among other sites.

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