The rise of the crypto gaming industry
May 8, 2022
Every modern user of the internet has heard a thing or two about cryptocurrency. But besides being the vessel for an overnight millionaire fluff piece, there are technologies standing behind cryptocurrency that are already changing many industries, including the gaming one.
What is crypto gaming?
Crypto games are online games that are either built using blockchain technology or utilize cryptocurrency for transactions.
In most cases, crypto games promote the creation and ownership of non-fungible tokens, NFTs. As opposed to centralized games in which the developers’ control all in-game assets and currencies, crypto games have their items decentralized, meaning they are wholly owned by the player.
This stands apart from a platform like Steam, where Valve’s terms of service explicitly state that all CSGO and Dota 2 skins are actually owned by the company.
Examining the growth of the crypto gaming sector
The crypto gaming industry is a growing part of the larger blockchain space. This emerging industry has attracted loads of attention since its inception.
In terms of its valuation, the crypto gaming industry was valued at approximately $3 billion in 2021. However, in Q1 2022 alone, investments in this sector exceeded over $2.5 billion. Backers are hoping for a rise in revenue, given the level of financial investment. Some forecasts state this industry should be worth over $39.7 billion by 2025, though these estimates are highly speculative.
NFTs have been a crucial factor in the growth of the blockchain gaming industry. By leveraging NFTs, game developers in the crypto space are looking to refine in-game economies. Theoretically, ownership and liquidation of in-game assets will become more straightforward thanks to NFTs.
Players could be allowed to freely sell and trade their NFTs for cryptocurrencies, and buy them off of other players. In some cases, these players may even earn a percentage from future sales of their previously owned NFT items. The hope is that combining this with free-to-play and play-to-earn business models will change the nature of blockchain-based games.
Some large video game publishers are hoping to capitalize on this. These efforts have largely been met with pushback from fans who are skeptical of NFTs after numerous high-profile scams and hacks. That isn’t slowing down developers, though.
Crypto gambling finds its place in the industry
Other types of crypto games have contributed to the growth of this industry. Crypto casinos, also known as Bitcoin casinos, stand out in this regard. Often regarded as an evolution of online casinos, crypto gambling platforms have enjoyed enormous growth over the past few years.
The quality of casino games on crypto platforms is comparable to standardonline casinos. Modern slot games that allow users to play using crypto are designed to offer good graphics and sophisticated game mechanics that put them on par with other platforms.
In addition to offering quality games, crypto casinos have other things to offer users. These include features like anonymity, lower fees and faster financial transactions. Many Bitcoin casinos provide instant withdrawal, which isn’t technically possible for standard online gambling platforms. They also allow cross-border gambling activities for fans of sports in other countries.
Streamers and crypto
Casino streaming is another sector of the casino industry that has experienced significant growth in recent years. Casino streamers use the popular streaming platform Twitch.tv to show their gaming activities and the most popular games type are slots.
Casino streamers can interact with viewers during live streams. To grow this emerging industry, crypto casinos and online casinos offer affiliate programs that allow streamers to earn money for advertising.
Rewards are typically paid using fiat currencies. However, some casino streamers are also accepting cryptocurrency payments. These streamers also accept donations from their viewers using crypto assets as well as Twitch’s endemic donation system.
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