The global online gaming market has seen significant growth as consumers explore more convenient ways to find the best games that use the latest technology. The widespread implementation of high-speed internet access and the speed of technological developments have seen gaming companies implement ground-breaking tech into their platforms as a way to stand out in a highly competitive market.
One key example of this is the adoption of cryptocurrencies like Bitcoin into the gaming industry. There are now a number of dedicated online casinos offering a range of games that customers can gamble on using crypto, including bitcoin slots, poker, blackjack, and sports betting. However, video games based on blockchain technology have proven just as popular, where players can earn and trade crypto tokens just by playing.
How then does Bitcoin’s notorious volatility affect players and operators of these games?
The Impact of Bitcoin Volatility on Crypto Gaming
The volatility of the cryptocurrency market does affect the blockchain gaming industry, but it continues to attract significant investment, even when other parts of the cryptocurrency market are facing challenges and asset prices are dropping.
A BGA Games and DappRadar gaming report shows the blockchain gaming industry is actually thriving and accounts for as much as 41% of the crypto industry’s engagement. It boasts a dUAW (daily unique active wallets) count of 712,611 users actively participating in the sector.
To put this into perspective, DeFi (decentralized finance) represents 30% of crypto engagement during the same period, social blockchain platforms make up 15%, and NFTs contribute just 4% due to their recent struggles.
In fact, Bitcoin’s volatile nature can actually benefit gamers in some ways. For example, those who use it to fund their online gambling accounts can benefit from sudden price changes (although they can also be negatively affected by these). By monitoring the market, players can decide when to cash out any winnings and convert them to fiat, when the exchange rate is strong. So, any winnings made at the casino could be worth more than at the time the initial deposit was made. Of course, the reverse can also happen, so it’s worth having a solid understanding of the market before gambling with crypto.
Despite the broader crypto industry facing funding challenges, blockchain gaming is enjoying a surge in investor confidence. The blockchain gaming sector secured investment funding to the tune of $297 million in July. 63% of this funding will go towards developing the industry’s infrastructure. This will help to support the growth of more blockchain-based games.
The Future of Crypto Gaming
Crypto casinos are still relatively new and will continue to develop based on customer preferences and developing technology. A lot of online gaming is exploring more immersive experiences for players and the metaverse that provides a virtual reality is one that is currently entering the market.
The crypto market will also develop with established cryptocurrencies continuing to provide users with greater levels of stability, and newer options providing great investment opportunities.
Crypto casinos also offer a selection of markets that can be accessed by players around the world. This includes countries that prohibit operators from establishing online casinos in their jurisdiction. Cryptocurrencies make deposits and withdrawals from offshore betting sites a significantly more convenient task.
The Top 5 Crypto Games of 2023
As well as offering an extensive range of crypto casino games and themes for slots, other popular crypto games provide ways for players to earn and win.
Alien Worlds
Alien Worlds has been one of 2023’s big success stories and is on the WAX blockchain. It is a mining game where players are rewarded with Trilium tokens and Shards, the in-game currency that players can use to buy NFTs. Players own plots of land and get a percentage of the Trillium mined there.
Splinterlands
Splinterlands is a trading card game on the Hive blockchain that gives players the opportunity to collect and battle with unique NFTs that they own.
Third-party marketplaces provide players with the opportunity to trade their cards and players can also win money by taking part in quests, tournaments, and ranked play.
Farmers World
Anyone who played Farmville in 2009 and 2010 will know just how addictive the competitive nature of farm games can be. Farmers Land is another game that makes use of the WAX blockchain and lets players carry out farming duties to farm gold, food, and wood. This can then be used to buy more tools to further develop your farm and create NFTs that can be sold to other players.
Axie Infinity
Axie Infinity is a popular blockchain game where players collect NFT characters before competing against other players. The game was developed by Sky Mavis in Vietnam and can be played on a variety of platforms including iOS, Android, Windows, and Mac.
It was originally released in 2018 and enjoyed immediate success. However, the game has had to recover from significant setbacks in recent years after being attacked by North Korean hackers.
Nine Chronicles
Nine Chronicles is an open-sourced RPG set in a fantasy realm and allows players to earn NFTs. The game uses the Planetarium platform and offers a free-to-play experience where players can earn NCG (Nine Chronicles Gold) by crafting and selling items, buying and selling, mining, or battling. Wrapped NCG is a token that can be used outside the game.
Conclusion
Cryptocurrency volatility has the potential to affect crypto games. However, as the industry grows, so do safeguards that companies put in place to mitigate risk factors. Emerging technologies are set to improve the immersive online gaming experience which will benefit crypto casinos and games in the long term.
While many investors prefer a stable investment, the potential for high returns is typically greater with high-risk, volatile markets. This could benefit the industry as it continues to develop with investors and players hoping to back the next big thing in crypto.