The future of cryptocurrency in online gaming
Since the birth of Bitcoin in 2009, cryptocurrency has continued to grow in legitimacy and application. The last few years have seen the value of Bitcoin soar as cryptocurrency news began to populate the front pages of the mainstream press. It has since been the source of many financial articles and predictions.
Bitcoin is by far the most well-known and valuable cryptocurrency, but there are many different types of cryptocurrency in circulation today. Ethereum, Litecoin, and Dogecoin all are well known in the cryptocurrency and fin-tech industries. They are all based on the same type of technology.
The technology that supports cryptocurrencies like Bitcoin is called blockchain. Blockchain databases have shifted our mindset of how data can be secured, shared and received online. It is extremely secure, completely reliable and systematically robust.
Blockchain has found its best application in cryptocurrency, however, it can, and has, been used in various industries. Blockchain technology has been used for voting, taxation, music streaming and online gaming.
Blockchain technology has found a special niche where fin-tech and online gaming meet. In online gaming, in-game purchases and tokenizing game assets has become a popular way for consumers to play games at a minimum cost barrier to entry, while the game developers make more money from all-or-nothing players who want to get the most out of their favorite game and make the in-app purchases.
From a fin-tech point of view, blockchain, and cryptocurrency specifically, allows for quicker and faster financial transactions that don’t need to go through all of the red tape of the existing banking system.
As both the fin-tech and online gaming industries continue to evolve with the latest technologies, cryptocurrency is gaining an increased amount of traction as the financial trading resource of choice.
Basics of cryptocurrency
As with any new technology, people are often skeptical of it until they know how it works. Cryptocurrency is no exception. So what is cryptocurrency? To oversimplify, cryptocurrency is a digital form of money. Bitcoin is a type of cryptocurrency, as is Ethereum and Litecoin. To understand cryptocurrency, you need to have a basic understanding of how cryptocurrency works.
Cryptocurrencies are kept, ledgered, and released with blockchain technology. It does not use the banking system, and as a result, is only regulated by the peer-to-peer technology of blockchain.
The blockchain technology is exceptionally secure. It tracks every single transaction in a ledger, which brings the utmost integrity to the transactions. For a cryptocurrency like Bitcoin, the sender and the receiver both need to sign-off on payments to create a digital signature. This transaction is documented in a public ledger, which ensures accountability and transparency.
For a transaction to be verified, it needs to be approved and added to the public ledger. Cryptocurrency miners set up computers to solve complex maths problems in order to open a block in the ledger. The blocks allow the transaction to be verified in the public ledger.
Bitcoin, as an example, incentivized cryptocurrency miners to add blocks to the public ledger by rewarding them when they unlock a block. The reward is usually an amount of the cryptocurrency, for example, 12 BTCs (Bitcoins).
Thanks to their setup and the technology of the blockchain, cryptocurrency is self-run and not governed by outside parties, like banks or tax departments. For many, this has been a welcome development, as it puts the money generated in the hands of the individual and removes many administrative and bureaucratic hindrances to spending and receiving money.
The value of a cryptocurrency is determined by the supply and demand of the cryptocurrency. Bitcoin has been set up to reach a finite amount of Bitcoins available. Each time a Bitcoin miner unlocks a block they are rewarded with an amount of Bitcoin. This increases the amount of Bitcoin available in circulation. Bitcoin has been built to decrease the amount released to miners by a 50% reduction every 210,000 blocks. The total amount of Bitcoin in circulation will never exceed 21 million BTCs. The price of Bitcoin is determined by the balance of supply and demand. The higher the demand, the higher the value of the cryptocurrency.
Cryptocurrency is a legitimate currency in many countries. You can pay for anything from food to cars with it. You can also sell it for another currency. In this way, you could buy Bitcoin when the value is low, and sell it when the value and demand is high. Bitcoin has made millionaires in this way in the last five years.
Use of cryptocurrency in the past and future
After understanding the basics of what a cryptocurrency is, you will see that it can have many different use cases. The speed and reliability of the transactions make it a great option for online payments.
In the past, cryptocurrencies have been used for basic business transactions, from grocery shopping to paying of salaries. It has since been used as an investment, with people buying low and waiting for the value to rise. It has also been used to protect personal wealth.
In developing countries with unstable governments, a government’s currency can drastically decrease in value. If citizens of that country want to travel or emigrate, their local wealth could be worthless. As a result, when unrest breaks out, or a government decision affects the exchange value of a currency, people will often buy a cryptocurrency like Bitcoin to store their wealth before it loses its value.
Buying Bitcoin is quicker, cheaper and more practical than going to a foreign exchange and buying foreign currency cash. It is also quicker, cheaper and easier than opening a foreign bank account. That being said, a cryptocurrency’s value can be volatile, so it should only be done in extreme political situations.
The future of cryptocurrency is often debated. One school of thought believes that it will not replace the existing banking system, and its volatility makes it unattractive as a day-to-day currency.
The other school of thought believes that cryptocurrency is the future of finance. The speed and security of cryptocurrency makes it more reliable than the existing banking infrastructure. It is also easier to integrate with the internet of things.
Cryptocurrency is born from and made for a digital world. The blockchain technology behind it is perhaps the reason why many think it will continue to increase in value and application. Cryptocurrency mining requires extensive computer knowledge and, at times, coding skills. As a result, it has appealed to software developers across the globe. These developers are building the apps, platforms, and games we use every day. It is safe to assume that cryptocurrency will be integrated with the online platforms of the future.
Cryptocurrency in online gaming
The gaming industry has benefited from the growth of the internet and emerging technologies. Artificial intelligence is a prime example of this. From Tamagotchis to Red Dead Redemption, artificial intelligence has been used to make non-player characters respond to your individual choices.
Each next generation of gaming consoles has brought with it new technology. This drives game developers to build their games with the latest technology for the latest console. The future of gaming on consoles like PlayStation and Xbox will only become increasingly online, with games being downloaded, played from and streamed from the Cloud.
This connectivity has shifted how gaming developers monetize their games. Games like Fortnite are free to play, with in-game purchases. By tokenizing game assets, game developers have found a way to build communities and drive revenue from more than just upfront game sales.
There has also been an increase in blockchain-based games, like CryptoKitties and CoinDogs. These games allow for battles between players that are fair and regulated through the blockchain technology. Add-ons and in-game features can be bought using cryptocurrencies. Crypto gaming creates more trust in the software behind games of chance. Naturally, it lends itself to online casino games as well.
A lot of people in the gaming community, both developers and players, hold cryptocurrency. As a result crypto gaming will continue to find an outlet and a market. Cryptocurrencies and game development will continue to evolve, and thanks to the technology of the blockchain, it will most likely be in the same direction.
Cryptocurrency and online casinos
Cryptocurrency news dominated financial papers in 2017 when Bitcoin’s value hit an all-time high. At one point, 1 BTC was valued at $19,783. Bitcoin and cryptocurrency forced the world to take it seriously. Since then, many platforms have accepted cryptocurrencies for payments. The online gaming industry, and in particular online casinos, have been early adopters in this regard.
In an online casino, real money exchanges hands regularly. Deposits are made and winnings are withdrawn. Cryptocurrency’s ability to facilitate fast transactions has made it a natural choice as a method of payment in online casinos.
For the players, there are added incentives to playing online casino games with a cryptocurrency. Cryptocurrency has a high-security threshold, and as a result, is not as easy to hack compared to a normal bank account. Using cryptocurrency also helps with bankroll management.
Bankroll management is essential to gambling responsibly. The best practice is to keep your bankroll separate from your other finances. If you play casino games online using cryptocurrency exclusively, you don’t pose the risk of dipping into your personal finances to top up your bankroll. You’ll have a clear insight into whether your bankroll has grown significantly or been depleted.
With cryptocurrency fluctuating in value, it could also be a great way to earn more of a cryptocurrency. Rather than earning through cryptocurrency mining or exchanges for hard currency, you could increase your crypto portfolio through a couple of games of online poker.
Most of the best online casinos will offer a welcome bonus matching your deposit, or offer free casino games that you can earn from. Both are viable ways to earn more cryptocurrency. It is important to research an online casino before signing up. With cryptocurrency, once you pay for something, the money is gone. Don’t expect refunds if the online casino is not legitimate and licensed.
When it comes to an online casino, the USA has imposed strict laws and regulations to ensure the safety of US citizens. In Delaware, Pennsylvania and New Jersey (NJ), online casinos are legal and licensed.
There are several respected gambling governing bodies around the world. These governing bodies communicate regularly and try to agree on global standards and regulations. Players can access a mobile casino online from anywhere in the world where there is an internet connection.
Cryptocurrency is perhaps the most viable option to establish a global currency for online casinos. An NJ online casino could have players from North America, Europe, and Asia, all playing with the same currency at the same value.
It’s clear that cryptocurrency and online casinos have the potential to benefit from a closer integration. You can find a live casino online that caters for cryptocurrency already, but the top online casinos, especially in the USA, are still focused on complying with relevant legislation.
Bitcoin continues to gain mainstream approval, and there is pressure on governments to embrace it. The fact that it is not tied to a particular country or their currency means that it is beyond the scope of existing taxing frameworks. If or when governments are able to tax cryptocurrency, you will most likely find it added to the legislation. At that point, it is guaranteed to be a payment option on all gaming platforms.
The wait for government legislation could also result in the cryptocurrency industry having more time to develop and enhance their platforms. At the moment, they are not exceedingly accessible to the layperson. There are many online platforms whose sole business is to be a cryptocurrency wallet for you and to help you manage your purchases and selling of cryptocurrencies.
For now, it may be safer to play at an established and licensed online casino. You can have peace of mind that your gaming experience is fair and enjoyable. Whether you enjoy online poker or sports betting, online gaming continues to benefit from technological advances and the latest software development.