The price of cryptocurrencies has recently achieved new all-time highs, which has led to a fast increase in the number of people interested in purchasing digital assets. During Bitcoin’s most recent increase in price in 2017, public interest in the cryptocurrency skyrocketed. However, following the market crisis that began in early 2018, cryptocurrency entered a prolonged winter, a time in which interest in digital assets also saw a fall.
Esports and Cryptocurrencies
This is a fairly typical application scenario in the esports sector. Even without implementing blockchain technology, the esports industry and online gaming platforms such as roulette has rapidly expanded over the past few years. After a brief lull caused by a lack of in-person events, the company quickly got back on its feet and is now prepared for even greater expansion. According to projections made by Newzoo, an analytics firm serving the gaming industry, the worldwide esports market will grow to $1.5 billion by the end of the decade, having already surpassed $1 billion in 2021.
The most played video games right now include titles like League of Legends, Dota 2, and Call of Duty: Warzone. A staggering number of viewers have contributed to the roughly 900 billion minutes that have been viewed on Twitch in 2020. The platform has approximately 4.5 million monthly broadcasters. In comparison to the previous year, there was a seventieth per cent increase in the number of live channels broadcasting at the same time.
In terms of demographics, most consumers of esports and cryptocurrencies are men between the ages of 18 and 44 and technologically literate. The real match, as a result, is in determining how blockchain might assist in overcoming some of these hurdles and allowing for the continuous development of the esports business. It is also important to note that the cryptocurrency and esports ecosystems became interwoven over time. According to this website, a tether is one of the most popular cryptocurrencies utilised for esports betting. It enables gamers to have a one-of-a-kind experience when playing their favourite games.
According to several reputable exchanges, the cryptocurrency market is benefiting significantly from the growth of the gaming industry. Since video game leagues first began to monetise the competitive aspect of video games, the video game industry has had a meteoric rise in terms of revenue and overall market share. Both of these businesses are increasingly cooperating.
There have been recent reports that businesspeople in the blockchain industry and the esports industry are exploring the possibility of combining their respective fields. Rally is a platform that has already been utilised by thirty different players, producers, and influencers to issue their cryptocurrency tokens. The platform is supported by Andreessen Horowitz and other venture capital businesses.
What are some industry obstacles and ways to overcome them?
Despite the growing popularity of esports, the sector still has a lot of ground to cover in terms of player and spectator experience. The administration and distribution of payments is a significant challenge. Players are frequently forced to use costly payment processors to collect the winnings from tournaments.
The user’s winnings can be instantly deposited into their digital wallet in the form of digital assets. Payments are processed without the need for a third-party processor to take a cut of the total and are instead delivered directly to the blockchain. Because the distribution of funds may be automated through smart contracts, there is no room for fraud or dishonesty in this system.
Most blockchain-based gaming platforms start with specialised games, which is a huge obstacle. Consequently, companies must simultaneously cultivate an audience for their platform while also gaining acceptance of the concept of cryptocurrencies. The strategy does not make use of the massive user base already in place, which comprises gamers and enthusiasts of esports worldwide.
Because the gaming business already has an audience, the simplest way to get mass adoption of the technology is to integrate blockchain and crypto into existing games and competitions in the industry. People will have easier time learning about cryptocurrencies in a setting that is already familiar to them if the product is brought to them and if the user interfaces are kept as simple and uncomplicated as possible.
It is also feasible for the integration to act in both directions simultaneously. Esports lovers in places with a shortage of high-quality payment networks may find more allure in a stablecoin tethered to the dollar. This would make it possible for esports to reach even more people worldwide.
Even if cryptocurrencies are seen as a “killer use case,” individuals must have a compelling reason to participate in blockchain technology. This is true even though bitcoin’s price is notoriously volatile. With an ever-expanding worldwide audience of billions of people, esports can raise the popularity of bitcoin in a long-term and sustainable manner.