Depending on how dialed in you are to the world of finance; it probably feels like not a day goes by when you don’t hear anything about cryptocurrencies. The same can be said of esports; it’s hard to be a gamer without hearing about the newest spectator sport on a regular basis. While cryptocurrency has been on a mission to change the way we look at money, esports has done the same with gaming. In the beginning, both sectors experienced pushback from those who were resistant to change, but as their benefits became apparent, many skeptics became supporters, recognizing the innovation and opportunities in both industries. In this article, we take a look at the growing connection between cryptocurrency and esports.
Esports and Cryptocurrency: A Natural Fit
There’s a reason we’re seeing a coming together of esports and cryptocurrency — both have a digital-first attitude and a tech-savvy audience. Esports got its footing online, with streaming platforms like Twitch putting it on the map long before professional gamers were filling stadiums worldwide. Cryptocurrencies followed a similar path, with online forums and social media playing a big role in their success. So, it’s not surprising that the decentralized model that has made cryptocurrency so popular has found a place in the esports community, which thrives on digital engagement and global connectivity.
All we have to do is look at the iGaming community to see how these changes are happening. Cryptocurrency still has a long way to go before it becomes the standard currency in online casinos, but it’s slowly but surely making inroads as more platforms accept the digital platform. When we think of iGaming, online poker is one of the first games that come to mind. While there’s still some debate over whether games like poker are truly esports, one thing is certain: poker has thrived online. On websites like PokerStars, players can hone their skills and even participate in online competitions in the same way traditional esports host tournaments that showcase the best players in the world.
Just as online casinos are increasingly embracing cryptocurrencies, esports teams have begun seeking cryptocurrency sponsorships, as both sides recognize the mutual benefits. When cryptocurrency companies partner with esports teams, they increase their visibility, making the collaboration well worth it. Some esports teams have even introduced digital tokens that fans can use to participate in team decisions and access exclusive content.
How Cryptocurrency Can Be Used in Esports
Cryptocurrencies can work with esports in a number of ways that are already being tested out in the industry. As we mentioned earlier, it’s becoming more common for cryptocurrency companies to sponsor tournaments and teams, just like they do with traditional sports. Esports teams get much-needed financial support when they partner with the crypto industry, while the companies get exposure to a tech-friendly audience.
Another way cryptocurrencies could find their way into esports is through prize pool distribution. With cryptocurrencies, there’s no delay in delivering cross-border prize payments, and transactions have lower fees than the traditional banking system. That’s why cryptocurrency makes a lot of sense for international tournaments where players from multiple countries come together to compete.
While NFTs aren’t talked about as much today as they were a few years ago, they could still have an important role to play in esports, where they could make it easier for gamers to buy in-game items like skins, weapons, and other digital assets. The special thing about NFTs is they are unique, tradable assets that have value and make it possible for players to actually own, buy, and sell exclusive-in-game items.
Benefits of Integrating Cryptocurrency into Esports
One of the biggest benefits of using cryptocurrency is it simplifies financial transactions, something that’s especially important for esports, where competitions often take place internationally. Cryptocurrencies also increase monetization opportunities and open up new revenue streams for players and teams, including digital token sales and NFT marketplaces. Beyond that, decentralized technologies have the potential to give players and fans more control over how they participate in the esports community.
