Gaming has changed considerably over the past 30 years. A good example is multiplayer games and instead of having to be in the same room as another player, using two consoles to play a game together, it is possible to play together easily using the internet.
Technology means gaming is no longer something for an individual sat in a room at home, a game can be played with other or against other people using a mobile phone while sat in a café. One of the most recent developments in online gaming is cryptocurrency and gamers are beginning to use the digital asset in various ways.
Gamers and Cryptocurrency
Studies have shown that gamers are more likely to own cryptocurrency than any other demographic. In 2020, over 40 million gamers owned cryptocurrency and that has increased further over the last three years.
Close to 40% of those gamers who owned cryptocurrency were between 21 and 38 years old and that brings us to another interesting statistic on the link between gamers and crypto. In 2022, 5% of all millennials owned some form of crypto but 55% of millennial gamers owned crypto. This statistic shows the significant link between gamers and cryptocurrency.
There are over 22 million gamers in the Asia-Pacific region alone that own cryptocurrency and many of the crypto owning gamers prefer to play mobile games. Roughly 50% of revenue from crypto gaming comes from mobile games, with around 30% of the revenue coming from console games.
Games are now allowing players to buy in-game items using cryptocurrency and online casinos are adopting crypto deposit methods. Crypto sweepstakes casinos are now very popular and more people are choosing to use crypto to make deposits and play online casino games, in addition to regular online video gaming.
NFT and Play-to-Earn Gaming
When playing a play-to-earn game, there is an opportunity to win in-game assets that can be transferred to the real world as they have a value.
The blockchain makes play-to-earn gaming easier than ever before and gives players the chance to earn money when playing online video games. Axie Infinity is a good example of a game that has adopted cryptocurrency. Axies are animals and they can be nurtured to battle and win rewards. Each Axie in the game is a non-fungible token (NFT), so it is a one-off digital collectible.
There is an economy within the game where players can trade Axies using in-game tokens and the tokens also have a real world value. Several other NFT games have become available thanks to the success of Axie Infinity and the game is a good example of how crypto has become popular with gamers.
Loot Boxes
Loot boxes are a controversial topic in gaming because some people believe they are a form of gambling. If we take the popular soccer game FIFA as an example, it is possible to purchase FIFA coins using real money and use the coins to buy packs. These packs are loot boxes and you can open the packs to reveal players and other items, such as soccer kits, that can be used in the game. However, there is no guarantee what players or items you are going to receive when opening a pack and that is why people are concerned about the gambling aspect of loot boxes, especially with so many children playing the game.
Despite the criticism of loot boxes, they are playing a big role in crypto gaming. Some people argue the use of crypto when buying loot boxes is becoming popular because of the increased transparency.
Crypto loot boxes use blockchain technology and that means everything is transparent, including what rewards are available from opening the loot box and what the chances are of receiving the different rewards. This allows gamers to make an informed choice regarding the loot box before buying. Cryptocurrency is also more secure than traditional online payment methods, such as a debit card, and gamers feel more confident when buying a loot box using crypto.
Game developers have been studying the use of crypto based loot boxes to offer players a new way to play their games. However, some onlookers believe the more popular crypto becomes with gamers, the more likely they are to develop a gambling problem.
As cryptocurrency is not regulated, it will not be easy for gaming companies to identify if someone is developing a problem and spending more on loot boxes than they can afford. The more popular crypto becomes with gamers and used in games, the more likely we will see some form of regulation come into place.
