Bitcoin
How Cryptocurrency Will Impact The Gaming Industry
It may have first originated in 2009 but it has been during the 2020s that cryptocurrency has well and truly exploded into the mainstream by steadily infiltrating a growing number of global industries and sectors. The gaming industry, in particular, has experienced rapid change due to the ever-changing nature of digital payment methods and the opportunity for players to be rewarded in virtual assets as opposed to physical prizes that they can later exchange and trade across a number of digital platforms. If you are curious as to how cryptocurrency will impact the gaming industry in the coming years as it grows and develops at an accelerated pace, continues reading to find out everything you need to know.
Image Source: Unsplash.
It will facilitate instantaneous transactions
In the gaming industry, the need for third-party or manual intervention has led to collective frustration amongst players forced to wait a considerable amount of time to be paid for their gaming efforts. The introduction of cryptocurrency, however, eliminates the need for external validation so gamers can deposit or withdraw instantaneously and efficiently and free up precious time to be spent on the physical act of playing a game. In the past couple of years, there has also been mounting frustration over the difficulty a growing number of gaming developers face when attempting to sell their software outside of designated app stores. By tapping into the wide-reaching benefits of blockchain, however, nano-payments can ensure software developers not only receive payments in a matter of minutes but are able to process them in a fraction of the time.
It will lead to greater accessibility and flexibility
The introduction of cryptocurrency into the gaming industry will allow players to tap into their favorite games without bypassing any additional security or exchange rate issues beforehand. This can also provide gamers with the opportunity to play without imparting any identifying information beforehand such as their name, email address, and telephone number which is common for a wide range of gaming platforms and software systems. In addition, the process of depositing and withdrawing funds will also be streamlined for players from start to finish with fewer hoops to jump through and little to no restrictions regardless of what geographical barriers may have previously stood in their way.
It will provide greater safety and security
When it comes to gaming in today’s increasingly digital landscape, safety and security remain fundamental concerns for both players and gaming developers with online purchases now common throughout the gaming industry and hackers waiting at every corner to expose vulnerable players. As well as familiarizing yourself with the best cryptocurrency wallet for you, by comparing Ledger vs Trezor for example, you must also ensure your safety and security needs are met when it comes to your online gaming endeavors with the use of blockchain technology preventing illegal and fraudulent trading of digital assets. In addition, it also minimizes the risk of hacking and theft by relying on a decentralized ledger where the potential for the duplication of keys is eliminated with smart contracts reassuring players that their transactions are safe and secure.
It will promise anonymity
One of the main advantages to come from the marriage of cryptocurrency and the gaming industry is that you can play with the added reassurance of complete anonymity. If you have ever wished to sharpen your existing skills without revealing your identity, for example, cryptocurrency may be the answer to your gaming woes. It has long been a fundamental concern for the gaming industry to reassure players that their money is safe and secure but there has been little progress made when it comes to reassuring players that their personal information is safe and secure. The recent introduction of cryptocurrency games has, however, proven that it is entirely possible to play with complete anonymity on your side by removing the need to disclose any information relating to your personal identity or online transactions. Unless you decide to voluntarily share your online transactions with a fellow user, your cryptocurrency payments will remain hidden from prying eyes forevermore.
It will save players money
In the short time that cryptocurrency has spent infiltrating the gaming industry, it has saved players a considerable amount of money by eliminating the need for hidden fees, handling fees, or exchange fees. This has led to it becoming one of the most cost-effective payment methods available to gamers today when compared to credit cards, debit cards, bank transfers, and even e-wallets. Because there is no need to wait for a third party or bank to validate a transaction, players may also be able to withdraw greater amounts frequently to add to their existing bankroll which makes the gaming industry more appealing to both experienced and inexperienced players as well as software developers.
Cryptocurrency has had a profound impact on the gaming industry in recent years but it is expected to continue revolutionizing the ways in which players interact with their favorite games in the years to come by facilitating instantaneous transactions, leading to greater accessibility and flexibility, providing greater safety and security, promising anonymity, and saving players money.
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In 2023, crypto bets expanded by more than 20%, as reported by SOFTSWISS. The leading technology company, with over 15 years of expertise in iGaming and number one in crypto-optimised software, shares its analysis of the dynamic crypto landscape.
According to industry research, the global iGaming market is projected to double by 2030 at a compound annual growth rate of 11.7%. Revenues are expected to exceed 140 billion euro, with a significant share attributed to crypto gambling.
SOFTSWISS, as the innovator in crypto iGaming software development, regularly conducts research to track the dynamics of crypto within the iGaming market. Using extrapolation, comparative and correlative analysis, experts analyse the data gathered from over 600 crypto-friendly brands powered by the company.
iGaming Market Overview
Based on SOFTSWISS data, the iGaming market had a stable expansion in 2023. In absolute terms in euro, the Total Bet Sum grew by 38.2% year-on-year. At the same time, the Total Bet Count displayed an even stronger increase, surpassing 51.2%.
The average bet is slightly decreasing for several reasons. One significant factor is the broader reach of online gaming, fueled by advanced technology and increased internet availability. This trend is more evident in emerging markets like LatAm and Africa, where bets are usually smaller. Additionally, the increasing number of players under 30 with budget constraints adds to the decline in the average bet size.
State of Crypto
The in-depth quarterly analysis, initiated at the beginning of 2022, reveals that fiat bets are undergoing more substantial growth compared to crypto bets. In Q4’23, the Crypto Bet Sum saw an 8.2% rise in absolute terms, while the Fiat Bet Sum surged by 16.4% compared to Q3’23. At the end of 2023, the crypto share in the Total Bets Sum (27.5%) decreased by 3.9 p.p.
The comparative analysis of the 2023 Crypto Bet Sum against the previous year shows 21.1% growth. Simultaneously, the Crypto Bet Count increased by 50.5% year-on-year. The growing number of bets indicates rising interest in crypto gaming, but the greater availability of digital currencies may lead to slightly more economical bets.
“The advantages of employing digital currencies, such as swift transactions and anonymity, are key drivers for many players. Given these dynamics, the market demands expanding iGaming projects’ opportunities for crypto players. The in-game currency conversion, for example, allows operators to engage players with cryptocurrency assets in games initially designed for fiat transactions. The projects that embrace such possibilities continue gaining more advantageous market positions,” shares Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.
Crypto Bet Stabilisation
The average fiat bet remained steady at around 0.82 euro throughout the previous year. Despite fluctuations in the average crypto bet during 2023, ranging from 1.59 to 1.88 euro, the changes appear modest compared to the twofold drop observed in the average crypto bet during Q4’22, which reached 1.56 euros. This indicates a certain level of stabilisation in the average crypto bet throughout 2023.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, comments: “The dynamics of the average crypto bet align with crypto market fluctuations. When digital currency values stabilised in H2 2022, the average crypto bet also levelled out. Another thing is that the average crypto bet is almost two times higher than the average fiat bet, which testifies that digital currencies are potentially used by players with higher incomes. Operators should consider this to increase project profitability.”
Cryptocurrencies Rating
The Top Five most operated digital coins in iGaming landscape have remained stable during the last two years.
In 2023, the cryptocurrency structure looks as follows:
- Bitcoin – 73.3%
- Ethereum – 9.9%
- Litecoin – 6.6%
- Tether – 4.6%
- Dogecoin – 3.1%
In Q4 2023, Bitcoin experienced a slight decline by a 5.7 p.p. compared to Q3 2023. Conversely, Ethereum and Litecoin showed growth of 4.7 p.p. and 2.2 p.p., respectively, during the same period.
Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarises: “The digital currencies market is rapidly expanding, with estimates showing over 50% growth in capitalisation in 2023. Despite the risks caused by the high volatility of crypto and its dependence on various factors, using it can bring extra profits for operators. The iGaming industry is promising for investments due to growth in both fiat and crypto markets, but success depends on trustworthy and experienced partners.”
About SOFTSWISS
SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.
In January 2024, the SEC approved 11 Bitcoin ETFs, marking a significant announcement for Bitcoin and the wider crypto-market. This approval demonstrates the growing integration of traditional finance with decentralized finance. The announcement has sparked mixed reactions, with crypto experts questioning what this means for the future of tradable crypto assets. On the back of the announcement, the news that BlackRock will now be the biggest holder of Bitcoin has made the issue more complex.
Evgeniy Babitsyn, CMO of Bets.io, is an expert crypto commentator who has been closely monitoring these latest developments.
“There are pros and cons to the BTC ETF. On the one hand, it gives retail investors another avenue of access to the crypto market, allowing them to invest through a traditional finance instrument. This is important because investors not well-versed in crypto investing can find it difficult to access and invest in crypto assets,” he said. “However, the bigger point here is that BTC’s incorporation into an ETF goes against the founding principles of cryptocurrency. Its evolution is a consequence of advanced technology removing the ‘middleman’ in transactions, empowering individuals to make transactions free of bureaucratic institutions.”
When it comes to the regulation of crypto assets, Evgeniy does admit that there is a role for regulators to play. However, he advises it should not go against the fundamentals of cryptocurrencies. “While there is a role for regulation to play, having an ETF in play goes against what BTC initially set out to achieve as an alternative to traditional financial systems.”
Increased institutional involvement in crypto trading can also distort the market, posing significant questions for the future. “News is now emerging that the world’s largest asset manager, BlackRock, is on track to becoming the biggest holder of BTC because of the ETF,” Evgeniy said. “Coupled with this, the ongoing developments from state entities to regulate crypto assets, the question now is whether the institutional embrace of BTC marks the beginning of the end for the coin, at least in its original form.”
Bets.io is a renowned brand within the world of crypto iGaming. It was launched in 2021 and has been rapidly expanding ever since. In 2022, the brand was acclaimed as The Rising Star Operator of the Year by SiGMA Europe for its ambition, results, and potential in the online entertainment industry. As such, it has been keenly watching the developments of crypto assets unfold.
Looking to the future, Evgeniy sees big announcements on the horizon. “For now, we know that 2024 will be a monumental year for the future of BTC, cryptocurrencies, and Web3.”
BitcoinCasinos.com has changed its domain name to FairBitcoinCasinos.com as part of its ongoing efforts to promote safe crypto gambling.
BitcoinCasinos.com offers customers thousands of secure crypto-gambling products. The name change will allow FairBitcoinCasinos.com to provide the most in-depth and user-friendly resources for online crypto bettors worldwide.
“We are very excited to introduce the new domain name Fair Bitcoin Casinos. Our primary goal has always been to assist users in finding the most trusted crypto casinos. The new name branding is just one change that will enable us to promote our commitment to providing the most accurate and transparent information to our users,” Tom Middleton, Editor-in-Chief of FairBitcoinCasinos.com, said.
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