Cryptocurrency is a great option for many businesses, it’s unique properties enable it to offer benefits that traditional currencies currently cannot. The rise of different cryptocurrencies in the online gaming sector is where these unique traits could prove to be very beneficial. Although many of the largest online gaming sites have yet to fully exploit the potential of cryptocurrencies, it seems that the change could be just on the horizon.
Anonymity
One area where cryptocurrency outperforms all others is in it’s total anonymity. Where users of online casino sites are required to enter their name, address and bank details in order to make payments, this could become a thing of the past with the introduction of cryptocurrency enabled sites. Leading online gaming site PokerStars, have hinted that they will be accepting Bitcoin as a direct payment soon. They currently accept cryptocurrency only through the Neteller intermediary, but this could be all about to change. Bitcoin would allow players to game anonymously, which could open up a new area of the market to this poker giant.
For most people, the thought of their employer discovering their love of online gaming is nothing to worry about, but in countries where it’s less practiced and in companies with very strict rules about conduct outside of work, cryptocurrency could provide an easily accessible way for people to indulge in their pastime.
Security
This anonymity also reflects well in terms of security. If an online gaming site doesn’t have your details, then quite simply it can’t lose them! With hackers using ever more sophisticated techniques to get their hands on people’s data, cyber security is becoming a growing problem. Cryptocurrencies such as Bitcoin remove that danger entirely.
On top of this, each coin is mined and therefore has it’s own number. This means that coins can be traced back to their original currency user. This sort of traceability makes it almost impossible for wrongful transactions to be made successfully. This means that players money is safe and so is the money of the service provider, it’s rare that everyone is a winner, but in this instance, that’s certainly the case.
No Central Bank
One factor that really annoys online gaming sites is the waiting time for currency conversions and transactions. With traditional currencies, all transactions must go through a central bank, which takes valuable time. If you’re operating a site with hundreds of thousands of visitors then all of these transactions soon add up into hours and hours of wasted time. This is frustrating not only for the site, but also for the user, who in areas of poor connectivity, may find it simply not worth the wait to carry out the transaction.
Some companies such as Xbox are already capitalising on this technology by encouraging the use of microtransactions. As Xbox already accept cryptocurrencies they can give players the option to buy small add-ons here and there, with super fast transaction times. The ability to speed up the game, buy a special item or even larger expansions is convenient for the consumer and has lead to a real boom in the earning capacity of free to play games.
Reduced Fees
Owing to the fact that we still largely use traditional currencies on online gaming sites, we are susceptible to the fees that central banks charge. For each transaction we make, a commission is charged by the bank. Currently, it is the provider that swallows the fee in order for the consumer to be able to play with all of the money they deposit. If providers decided to change their systems to allow cryptocurrency deposits then the fees could theoretically be reduced.
As it stands, many providers use intermediary systems to allow players to game with cryptocurrency. As mentioned above, Neteller is a popular intermediary as it works with all of the main cryptocurrencies. The big drawback here is that it charges a 2.5% transaction fee, but not to the online gaming site provider, who pays only a nominal fee, but to the consumer. Although 2.5% doesn’t seem a huge amount, when you consider the number of transactions Neteller are processing, it’s certainly making them a nice amount of cash.
