Crypto has gained mainstream attention in recent years, with the values of currencies, like Bitcoin and Ethereum reaching all-time highs. Many businesses and industries, like insurance and E-sports, now use these digital currencies as legitimate forms of payment, increasing their audiences in the process.
The e-Sports industry has utilized virtual currencies extensively. The already popular competitive gaming industry has seen massive impacts from affiliating with crypto companies. The effects are visible, from the Bitcoin betting sites that let players wager on sports results with Bitcoin to sponsored tournaments that bring the limelight to both markets. There are ample opportunities to stake, win real money, and engage in all betting activities more securely.
Crypto and e-Sports: Overview
Cryptocurrencies are digital currencies that operate on blockchain technology to ensure secure financial transactions. These currencies are decentralized and independent of third-party organizations. This means entities, such as the central bank or the government, can’t control transactions or trade through the assets. The introduction of Bitcoin in 2009 brought the industry to the limelight, with several currencies, such as Ethereum, Dogecoin, and Litecoin, getting introduced later.
On the other hand, E-sports, also known as electronic sports, are organized video game competitions. The gaming industry encompasses a wide variety of games, including first-person shooters, sports games, and strategy games. This gives gamers a chance to play in major tournaments and leagues professionally. These tournaments are held globally, hugely attracting both in-person and online audiences.
How Crypto is Being Adopted in the E-sports World
Despite the hesitance of many e-Sports markets to welcome the use of digital currencies, they’re slowly gaining ground in the industry. These are some of the ways it’s getting accepted:
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Payment Methods for Tournaments
The gaming industry continues to accept Bitcoin and other currencies as sponsorship payments for tournaments and salaries for their players and staff. Unlike traditional banking methods, this payment system allows fast and easy transactions that don’t incur high fees.
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Sponsorship Deals
Many e-Sports organizations and teams, like Cloud9 and TSM, have dabbled with crypto through sponsorship deals. These deals usually involve groups and organizations displaying crypto companies’ logos at tournaments and matches. In return, they receive financial sponsorship and exposure to a new audience.
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In-Game Purchases and Sports Betting
Many gamers also use digital currencies for in-game purchases, such as extra lives, character skins, and crypto sports betting. For example, some games, such as CryptoKitties, operate on blockchain technology and are played using these digital currencies.
E-sports betting sites, like Unikrn, also allow users to place bets on matches using digital currencies. This gives punters easy transactions, offering increased security and anonymity for players and teams.
The Impact of Cryptocurrencies on E-sports
The adoption of crypto into the competitive gaming industry has positively influenced the industry in positive ways, including:
- Fast Transaction Processes
Crypto majorly offers fast and easy transactions. It can be transferred almost instantly without incurring unreasonable fees, compared to traditional payment methods like bank transfers. This is particularly beneficial for e-Sports tournaments and merchandise sales, where quick and secure payment processing is essential.
- Security and Anonymity
These currencies also offer increased security and anonymity to their users. They use data encryption and blockchain technology to secure transactions, making them less vulnerable to hacking and fraud. This automatically makes it easier for players and teams dealing with large amounts of money.
Besides the safety net it offers, it also provides anonymity for its users, as they can make transactions without revealing their personal information. This also automatically takes them off the radar of hackers.
- Wider Global Reach
Crypto also opens up new opportunities for global reach and accessibility for the gaming industry. Here’s how it works. Digital currencies are location-independent. This means they’re easily transferred across borders, allowing people to engage in international tournaments and purchase merchandise without expensive currency exchange and fees. This also makes e-sports accessible to players and fans in countries with unstable economies or strict money controls.
- Increased Professionalization and Legitimization
Crypto also contributes to the legitimization of the sector. Using virtual currencies for payment and sponsorship deals adds legitimacy and transparency to e-sports transactions — and this aids in establishing e-sports as a professional industry, attracting more investment and sponsorship opportunities in the process.
The Potential for Mutual Growth between the Two Industries
The e-Sports market continues to get exposure through digital currencies and their affiliates. This has increased the use of these currencies through investments, sponsorships, and other everyday transactions in the finance industry, driving the growth of both sectors.
E-sports’ growth can also drive crypto technology’s development and innovation. How? The demand for quick and secure payment in the market may lead to the finance industry developing new crypto technology or improving existing ones.
Final Thoughts
The adoption of crypto assets in e-Sports has brought numerous benefits to both sectors. These benefits include quick and easy transactions with low fees, increased security and anonymity, and the potential for more extensive global reach and accessibility.
The growth of e-Sports can also influence the mainstream adoption of digital currencies, create investment and sponsorship for the gaming industry, and drive the development of crypto technology.
