Are Gamers More Inclined to Own Crypto?

Gaming and cryptocurrencies have been a hot topic recently because of parallel developments taking place in both these sectors. The constant upgrades to blockchain technologies continue to make digital currencies more practical for several purposes including gaming. There are numerous benefits to this crossover which appeals to a wider user base especially when taking into consideration the evolution of concepts like GameFi and play-to-earn game mechanics. Although these models aren’t the core reason that makes gamers more inclined to own crypto they definitely play a significant role in the overall adoption of decentralized finance.

The Gaming Population Is More Inclined to Own Crypto

Recent surveys and studies have clearly revealed that the gaming population is inclined to own digital assets more than non-gaming communities. For example, in 2021 LimeWire and Bitcoin Magazine conducted a survey that suggested that approximately 40% of gamers are invested in cryptocurrencies, whereas only 16% of the general population is involved with decentralized finance. The main reason behind this is that there’s a marginal difference in the tech-savviness of gamers and other people since gamers are generally more likely and willing to embrace new technologies.

The integration of digital currencies in gaming could also partly be attributed to the adoption of this innovative technology in adjacent industries like iGaming. Online crypto casinos are rapidly growing as the primary way players want to wager online and enjoy playing different games. Crypto casinos allow gamers to buy in, wager, and withdraw funds using digital currencies like Bitcoin. To play the latest slots at this Bitcoin Casino, all you need to do is deposit a cryptocurrency of your choice. The site accepts several altcoins, including Litecoin. Digital currencies unlock the freedom for gamers to enjoy a seamless experience that’s fast and secure when executing transactions.

On the other hand, gamers are also accustomed to virtual economies that are ingrained within the gameplay of different genres. A great example of this is Fortnite and Roblox in-game currencies like V-Bucks and Robux which are available in both these games respectively. Although these virtual currencies are centralized and solely apply to specific titles they resemble cryptocurrencies to a relative degree. The main difference between the two is that decentralized finance instruments allow players to trade assets across many different platforms which makes crypto far more superior.

Why Do Gamers Prefer Cryptocurrencies?

Most traditional games that use fiat currencies for game transactions don’t use blockchain technologies which enable the true ownership of in-game assets. The assets could include skins, armor, in-game currencies, or other collectibles but the drawback is that they are confined to one game with no value outside of that title.

However, with crypto and blockchain, players can have true ownership of such digital assets and they typically hold value universally in marketplaces with the potential of even being converted as fiat money. Gamers are turning toward such gaming models since they can be an investment if the value of certain assets increases over time.

Furthermore, the use of crypto concepts like decentralized governance empowers players by allowing them to vote on decisions relating to major upgrades or updates to the game. This approach improves community engagement which is the main reason why decentralized finance has gained so much popularity over the years.

The Rise of the GameFi

A groundbreaking innovative solution was born from the crossplay of crypto and video gaming aptly called GameFi. The concept refers to a feature in the gaming industry that allows players to create their own decentralized ecosystems. Within these ecosystems, gamers can then get back cryptocurrencies or NFTs that hold real-world value as a form of a reward system.

To illustrate, in Axie Infinity, you can breed, raise, and play with digital creatures by battling other players and once they’ve grown they can be sold for real money. Meanwhile, players also earn Smooth Love Potions which is essentially a cryptocurrency that can also be converted for real money in crypto exchanges.

There are plenty of other games that offer a similar gameplay model including The Sandbox and Decentraland that couples a fun and exciting experience with the potential to earn some money. GameFi is expected to continue growing as more players gravitate toward crypto and blockchain-based games that offer play-to-earn mechanics.

NFT Gaming: The Play-to-Earn Concept

Just like GameFi, some games incentivize gameplay by putting NFTs at stake as tradeable digital assets. The types of assets that can be traded are much more diverse ranging from skins to entire virtual worlds and characters. Meanwhile, players also earn when reaching certain milestones, and others are designed entirely to trade rare NFTs. For instance, games like Gods Unchained are trading card games that were developed primarily to help players earn while engaging in this hobby.

The Sandbox also allows players to create their own NFTs and sell them to other players in secondary marketplaces. Since this concept verifies the rarity of in-game assets, over time these grow in value offering gamers a unique way to get something back from the investment they make into gaming. Additionally, this also makes gaming more competitive since players know that they’ve skin in the game due to the reward on the line.

The Benefits of Introducing Cryptocurrencies to Gaming

Crypto plays a pivotal role in the future of gaming, especially in places where traditional finance systems aren’t widely available by allowing access to in-game transactions without the need for fiat currencies. The global reach and inclusive nature of digital currencies also make player pools more exciting and diverse as gamers from around the world with varying levels of experience add complexity and challenge to the gameplay.

Moreover, player empowerment is one of the biggest benefits of crypto in gaming since it ensures that gamers have more control over their digital assets, allowing them to move them from one game to another or trade them in marketplaces. For developers, crypto means unique ways to monetize gaming experiences like launching governance tokens that earn players voting rights or charging transaction fees if in-game assets are bought or sold.

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