How Are Cryptocurrencies Influencing Video Games?

If you’re well-versed in online video games or just video games in general, then it’s very likely that you’re aware of what cryptocurrency is. This is because a lot of gamers have somewhat of an advantage over others when it comes to understanding and adopting the various cryptocurrencies available. Many recent video game developers have been using something similar in the games they make. We call this in-game digital currency.

Digital currency is typically used to buy in-game items or virtual goods, which vary from character skins to services that make your gaming experience less of a grind. There are in-game economies that have developed within the many virtual worlds that revolve around these virtual currencies, and these economies work similar to real-world ones.

Now, something similar has popped up in the real world. A virtual currency that is not limited to just one video game, but one that is turning out to be a new revolutionary way to buy, sell, and transfer money. Here we’ll be talking about the impact cryptocurrency has to video games and its future.

What is Cryptocurrency?

Before we get into the effects of cryptocurrency in games, let’s first try and understand what cryptocurrency is. Cryptocurrency is basically a virtual medium of exchange that uses cryptography to secure and verify the transactions that make use of it. The creation of new units of a particular cryptocurrency is also highly regulated. These types of currency are limited database entries that can’t be changed unless a specific condition is met. This limited status makes them good mediums of exchange that can hold real-world monetary value unto themselves.

Crypto in Video Games Right Now

Game developers have created new, more profitable ways to monetize the games they create. Though the number of games that use cryptocurrencies in their titles is currently not that many, according to many blockchain gaming reviews, publishers have begun looking into innovative ways to utilize this new method of payment. After all, each video game, particularly massive multiplayer ones, has already been making use of in-game currency that can allow players to buy and sell to one another with very little fuss. It’s not that big of a jump to throw cryptocurrency into the mix.

Currently, games begin losing money when in-game items actually get traded between players for real-world money, a feature that is normally not supported by the games themselves. The introduction of cryptocurrency will allow developers to maintain a game’s profitability by providing oversight on these types of transactions. This also provides a safeguard on in-game transactions made by players, and also adds real-world value to a virtual item, completely eliminating the “grey market” of virtual goods.

The Future Impact of Cryptocurrency in Gaming

Because cryptocurrency is still in its infancy, its full potential may not yet be fully realized any time soon. New things are being planned, however, and new developments in the gaming industry are already on the horizon. Many publishers are already looking into new ways to tokenize in-game items with the use of cryptocurrency, which will have profound effects on gamers who play multiple titles at any given time.

If a developer, for example, has more than one title, a player may have the option to actually own the digital items they buy through the use of crypto, the value of which can be transferred real-time between the two or more different titles made by the same developer, allowing players more freedom with how they use money in-game. Transactions like this not only secure players who own virtual goods, this will also allow developers to further monetize their games in the form of “transfer tax”. While it is very unlikely that cryptocurrency will have a profound effect on the gameplay itself, it may lead to new avenues in gaming.

Issues to Watch Out For

While adding cryptocurrency in games have the potential to give players and developers more freedom, it does have the potential to make games unfair. Adding the ability to buy items or in-game services using real-world money could give a certain player’s advantage over others by spending more money than the other, regardless of who is more skilled. Developers believe that they can mitigate this by simply balancing the game as thoroughly as they possibly can.

While at its current state, video games do not need cryptocurrency to thrive, the same may not be true in the near future. As new ways of entertainment are being developed, the video game industry may need to catch up, and working with cryptocurrency may be the only way they can do so. Whatever the case may be, cryptocurrency has the potential to help enrich video games and those who play it.

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DISCLAIMER: Be aware that the activity of cryptoassets mentioned in this article is unregulated. This article must not be construed as investment advice. Always do your own research.

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