If you’re familiar with cryptocurrency, you know that volatility comes with the price. Markets never close. Digital currencies get exchanged anywhere around the world at any time.
These are features of cryptos like Bitcoin and Ethereum that sideline retail investors.
But how are cryptocurrencies used in the gaming industry?
Why is Gaming Crypto the Future?
Crypto gaming comes from a worldwide video game market that, in 2021 reached $195 billion. Players receive incentives by competing for awards like NFTs or cryptocurrencies.
Those digital tokens might then get used for in-game purchases. Gamers may also transfer their crypto to online exchanges or digital wallets.
Developers sell their in-game products to enhance gamers’ abilities. Players then perform specific goals with different characters, weapons, or skins.
Cryptocurrency gaming forms a massive online community with its own monetary ecosystem.
Virtual worlds like Sandbox (SAND) and Decentraland (MANA) offer their native tokens. ApeCoin (APE) is a major digital currency in the entertainment industry.
These currencies may double or quadruple U.S. dollar value in the next five years.
Playing cryptocurrency games may then become a solid financial investment for your future.
How Does Blockchain Affect Gaming?
The purpose of blockchain is encryption. If you’re using an encrypted site, any potential hackers will get a bunch of useless encoded symbols.
That security feature applies to cryptocurrencies.
So, if gamers make an in-game transaction via encryption—their data stays safe.
Blockchain technology affects gaming by making transactions faster. Users remain anonymous without having to make their identities public.
Digital currencies are also a valuable source of funding in the entertainment industry. With transparency through a public ledger, every transaction gets recorded.
But are there any downsides?
Does the Crypto Crash Affect Gaming and Entertainment?
Depending on your point of view, one of the main problems with crypto is volatility. In November 2021, Bitcoin peaked in price at $68,000. By June 2022, the price crashed to below $19,000.
Bitcoin is the main driver of the crypto market. Many coins with a much smaller market capitalization nose-dived. In that same period, Ethereum dropped from $4,800 to below $1,000.
The downgraded reports of the U.S. economy were major contributors to the crypto crash. Stablecoins tanked as well, creating a massive sell-off that cost investors billions.
Gaming and entertainment industries harmed by the crash experienced a loss of confidence. Some crypto or gaming companies all but disappeared.
Access to crypto on exchanges got restricted. Massive layoffs at top companies also occurred in the wake of the decline.
Crypto crashes happen. And when they do, the value of some currencies falls 70% – 95%.
There was a silver lining: a swift turnaround as the summer progressed in 2022.
But the impact is clear. Crypto gaming might not be for everyone.
Will a rebound help bring legitimacy back to video game cryptocurrency?
Bitcoin Gaming
From the start of the summer until mid-August, Bitcoin recovered about 25% of its value. Ethereum recouped by 48%.
The $2 trillion lost from the crypto market may have strengthened its top coins.
Bitcoin gaming includes sports betting and online casinos. The casino industry has seen an incredible boost in implementing new payment technologies like Cash App, Paypal, and even crypto.
Most offshore betting companies allow deposits and withdrawals in crypto. Some may prefer it.
It helps to cut down on the fees associated with traditional banking methods. It improves security and gives players the added benefit of faster payments.
You’ll find large crypto bonuses with greater limits for transactions. This makes it appealing for high-rollers who want to gamble online as they see fit.
Other options include play-to-earn (P2E) crypto games. You can try Tamadoge, Battle Infinity, and Lucky Block.
Grow your own doge for digital battles and earn TAMA. Play in fantasy sports leagues or monetize your land holdings in a metaverse.
Buy an LBLOCK lottery ticket or get one free by connecting your digital wallet to the app.
If you’re willing to tolerate volatility, crypto gaming might be worthwhile in the long run.
Final Thoughts
The impact of the crypto crash on the entertainment industry depends on perspective. Gamers new to crypto might not be so comfortable with its errant ups and downs.
Those with a long-term view of things might see the downturn as a great time to get started.
Crypto gaming tokens with a lower market cap offer a lot of potential upsides. By staying in the game, you can use the crypto crash as an opportunity to learn more.
Using cryptocurrencies in video games represents the future of entertainment. Once it becomes more accessible to the public, things may take off.
From playing games to online casinos, crypto affects entertainment in a big way.
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