Cryptocurrency has become a buzzword of 2017 and is showing no signs of slowing down. However, its application in the gaming industry is still relatively new. "Some people see this as an exciting opportunity for advancement while others see it as an elaborate scam" - Raghib Khan. So what's the real deal with cryptocurrency and online gaming?
Understanding the link
In a world where the gaming industry is predicted to be worth $159 billion by 2022, it should be no surprise that cryptocurrency and blockchain are looking to disrupt the space. However, there are questions about whether or not this is a good thing for both gamers and developers.
Raghib Khan, Phonato Studios, who has been involved in the gaming sector for over a decade, understands the space inside out and has followed cryptocurrency developments within the industry with great interest. Raghib compares the online gaming industry to many other industries that have been disrupted by cryptocurrency, such as finance and investing.
He states: "In recent years, we have seen blockchain technology start to play an increasingly important role in online gaming. While many people associate this sector with fun and entertainment, it is a multi-billion dollar market."
Blockchain technology was first introduced back in 2009 when bitcoin launched. Since then, blockchain has been used across several industries, including finance and investing. However, there are more uses of blockchain than that. It can also be used to disrupt other sectors too, including the gaming sector -- which is precisely what Raghib believes is happening at present.
Exploring the possibility of risk
People think interlinking between gaming and cryptocurrency is potentially dangerous because of its volatile nature. To answer that briefly, Raghib Khan adds," There have been cases of companies claiming small-cap investments in the form of cryptocurrencies, only to collapse and leave investors high and dry with no access to their money."
For example, in late 2019, a South Africa-based company called Mirror Trading International (MTI) promised its clients monthly returns, funded by investments in currencies such as Bitcoin.
The problem was that MTI had no real value beyond what MTI claimed. In August 2020, after rapid growth, the company collapsed, and its CEO disappeared with all the money up to $200 million, leaving investors nothing.
This is not an isolated case — there are many examples of companies doing the same thing over the years. What's different about gaming and cryptocurrency is that they are both prevalent right now, so companies can quickly make a lot of money by exploiting the link between them.
What's the truth?
It's hard to imagine that blockchain technology and cryptocurrency can be used in gaming, and however, the reality is quite different; cryptocurrency is already here to stay. The funny thing is that this technology has been around for a while now, but it's only now that people realize its importance in gaming.
When it comes to online gambling, it has become necessary because of the following reasons:
Cryptocurrency is safe
It is helping people make money
It allows gamers to access their money quickly and easily.
Cryptocurrency has become popular because many gamers are using it for online transactions. It is being used in online casinos and eSports because it allows players to make fast transactions without delays. Although many websites accept cryptocurrencies, some of them are not reliable. So, you need to be careful when choosing a website to use your cryptocurrency.
What does the future hold?
The cryptocurrency and gaming industries have been growing exponentially, and many of the key players from the two fields are now considering ways to integrate the two. The most obvious way this is being done is through online casinos and betting platforms, which allow people to use their cryptocurrency for wagering. Blockchain technology has also enabled gamers to invest in the development of games through ICOs (initial coin offerings).
Raghib Khan, Phonato Studios, says that this integration will lead to some of the most significant innovations in the gaming industry. "No doubt, combining blockchain technology with gaming will lead to several innovations," he says. "However, it's important to understand that there are risks involved as well."
According to Khan, understanding how these developments work is critical: "There are various ways for cryptocurrency and gaming to be integrated." He gives an example: "One of them is ICOs. In an ICO, gamers can choose to fund a game by investing in it." There are also platforms where users can play games and get paid in cryptocurrency.
What steps can you take so that the risk involved is practically zero?
Gamers who have used Bitcoin or other cryptocurrencies to play casino games on platforms like BitStarz will know that crypto transactions are processed almost instantly. There's no need to wait for days for your withdrawal to be cleared — everything happens in real-time. But suppose you're new to playing casino games online. In that case, the first thing to do is find out whether the platform is licensed—regulatory bodies like the State & Federal Gambling Commissions, Agencies & Regulators. License the most reputable casinos These licenses guarantee a certain level of safety and security for players, so look for them before signing up anywhere new.
Raghib Khan urges readers to stay safe by commenting further on the situation by stating, "If you want to stay safe, you should always make sure that you use a secure website when gambling and keep your device up-to-date with antivirus software. It's essential to remember that if something looks too good to be true, it probably is. The same goes for online gaming companies that offer massive bonuses and jackpots, only to find out they're not legit."
Closing thoughts
In conclusion, the popularity of cryptocurrency is snowballing, and so are the numbers of persons who try their luck with it. That being said, this article has attempted to explore the potential risks, secure ways of investing, and potential benefits. With these basic rules, you can live longer, knowing that you are not easy prey to be taken advantage of, cryptocurrency scams, or lack of knowledge.
