The global online gaming market has seen significant growth as consumers explore more convenient ways to find the best games that use the latest technology. The widespread implementation of high-speed internet access and the speed of technological developments have seen gaming companies implement ground-breaking tech into their platforms as a way to stand out in a highly competitive market.
One key example of this is the adoption of cryptocurrencies like Bitcoin into the gaming industry. There are now a number of dedicated online casinos offering a range of games that customers can gamble on using crypto, including poker, blackjack, and sports betting. These sites also offer slots, live dealers and original games, all accompanied by unbeatable VIP rewards and exclusive bonuses (source: https://www.megadice.com/).
However, video games based on blockchain technology have proven just as popular, where players can earn and trade crypto tokens just by playing. How then does Bitcoin’s notorious volatility affect players and operators of these games?
The Impact of Bitcoin Volatility on Crypto Gaming
The volatility of the cryptocurrency market does affect the blockchain gaming industry, but it continues to attract significant investment, even when other parts of the cryptocurrency market are facing challenges and asset prices are dropping.
A BGA Games and DappRadar gaming report shows the blockchain gaming industry is actually thriving and accounts for as much as 41% of the crypto industry's engagement. It boasts a dUAW (daily unique active wallets) count of 712,611 users actively participating in the sector.
To put this into perspective, DeFi (decentralized finance) represents 30% of crypto engagement during the same period, social blockchain platforms make up 15%, and NFTs contribute just 4% due to their recent struggles.
In fact, Bitcoin’s volatile nature can actually benefit gamers in some ways. For example, those who use it to fund their online gambling accounts can benefit from sudden price changes (although they can also be negatively affected by these). By monitoring the market, players can decide when to cash out any winnings and convert them to fiat, when the exchange rate is strong. So, any winnings made at the casino could be worth more than at the time the initial deposit was made. Of course, the reverse can also happen, so it’s worth having a solid understanding of the market before gambling with crypto.
Despite the broader crypto industry facing funding challenges, blockchain gaming is enjoying a surge in investor confidence. The blockchain gaming sector secured investment funding to the tune of $297 million in July. 63% of this funding will go towards developing the industry's infrastructure. This will help to support the growth of more blockchain-based games.
The Future of Crypto Gaming
Crypto casinos are still relatively new and will continue to develop based on customer preferences and developing technology. A lot of online gaming is exploring more immersive experiences for players and the metaverse that provides a virtual reality is one that is currently entering the market.
The crypto market will also develop with established cryptocurrencies continuing to provide users with greater levels of stability, and newer options providing great investment opportunities.
Crypto casinos also offer a selection of markets that can be accessed by players around the world. This includes countries that prohibit operators from establishing online casinos in their jurisdiction. Cryptocurrencies make deposits and withdrawals from offshore betting sites a significantly more convenient task.
Cryptocurrency volatility has the potential to affect crypto games. However, as the industry grows, so do safeguards that companies put in place to mitigate risk factors, although crypto remains a high-risk, volatile market. Emerging technologies are set to improve the immersive online gaming experience which will benefit crypto casinos and games in the long term.
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