What industry must cryptocurrency focus next?
At present, the prices of major cryptocurrencies are largely dictated by the sentiments of its investors. This partly explains why crypto values are far from stable – digital coins have somehow morphed into investment options from their original intended purpose as means of exchange.
However, there is an ongoing development that should be good news to all cryptocurrency investors – cryptocurrency’s entry into the world of gaming. When this happens, experts say that not only will it unlock cryptocurrency’s value as a means of exchange and probably stabilize prices in the process, it could even be the catalyst for that crypto rally everyone is waiting for.
At least that’s the talks going around during the 2018 Game Developers Conference (GDC) held in San Francisco’s Moscone Center on March 19-23. Apparently, professionals within the crowd of 28,000 attendees just can’t stop talking about cryptocurrencies and the blockchain technology behind it as well as the exciting potential it could bring to the gaming industry as a whole.
In a gist, all the excitement is about the mutually beneficial relationship both the gaming and the cryptocurrency will have in the near future. Industry experts predict that gamers will readily accept the use of digital coins in intra-game transactions as they have been doing virtual trades for a very long time. When this happens, cryptocurrency companies could experience explosive growth that could rival last year’s as they begin tapping into the enormous gaming industry.
Anticipating the exciting things up ahead, there was even a blockchain and gaming panel discussion during the event which was set up to look into cryptocurrency’s impact on the gaming scene. Not surprisingly, the discussion was hosted by DMarket, a blockchain-powered marketplace that trades virtual items from popular games into real-world assets.
Contrary to its name, players actually spend big cash on free-to-play games. This is done to purchase the in-game currency or the currency used in the game to buy special, more powerful items. The entry of cryptocurrency into the gaming world could simplify the transaction for gamers – they no longer need to purchase the in-game currency but will now be paying for the special items they want by using cryptos instead. Conversely, players who wish to sell their items to other players will now directly receive the payment which will also be in digital coins.
“Greed can be seen in free-to-play games since lots of money has to be spent in order to acquire certain assets,” BitGuild CEO Jared Psigoda explained the dynamics of gaming transactions. ”This is an industry problem, as all of the major companies are driven by profit. But, do these companies value profit over everything? If so, is that good for the player base – probably not. Blockchain technology finally allows gamers to own their in-game items while providing a strong focus on trade and the gaming economy. Moreover, player ownership of assets allows for a proportion of game revenues to go back to the player base.”
Just how big is the gaming industry that cryptocurrency investors should be excited about it? Surprisingly, the gaming sector managed to generate a massive $108.4 billion in 2017 alone. Meanwhile, revenues from free-to-play games reached an astounding $82 billion and players in this particular genre reached 2.5 billion gamers last year. To put that in perspective, one out of three people on the planet plays some free-to-play game.
But there’s even more. Apparently, the gaming industry’s prospects are as rosy as ever. By 2020, a Global Games Market Report predicted that the gaming industry would eventually reach $143.5 billion.
“The union of gaming and blockchain is inevitable,” MyDFS’ Frank Fu explains why crypto and gaming is a perfect mix. “Encrypted blockchain guarantees safe storage of all in-game digital assets, what makes the data transparent to the core. Smart contracts exclude third parties from payment processes, making transactions fast and safe. said Fu. Blockchain technology is the solution we are all looking for, due to the decentralized network and capability to record each transaction to combat fraud. That actually can trigger the gaming industry’s next evolution.