Video Game Cryptocurrencies: The Real State

By now, the most significant market fields that benefit from blockchain technology are financial and payment services. Newzoo analytics predict a 9,6% gaming industry growth with $152.1 billion in revenue. It means that there is a sense in considering investing in gaming cryptocurrencies. They have the potential to become a significant element in conducting in-game transactions. Hammergamer experts analyzed the current state of the market and shared their view on how this market is going to develop.

Potential Implications of Gaming Cryptocurrencies

Game developers have an idea to tokenize in-game items. Cryptographic accounting systems could allow items to be traded outside games as well as to be used in other titles. It seems to be a new way of commissioning transactions. 

The implication of blockchain into gaming transactions could provide gamers with the chance to play their favorite games and generate income. As a result, those people who have never thought of using a cryptocurrency become rightful coin owners. It may cause to the stronger engagement of gamers and a dramatic increase of active cryptocurrency users. 

For better understanding, imagine a successful online game with crypto instead of dollars or euros. For example, Creative Destruction is a Battle Royale title in which players are allowed to customize their characters to individualize them. They can pick up and purchase thousands of virtual items, such as clothes and accessories. Next, they join several battles per day, where 99 other users see them. It would be much easier to buy the same things from players, instead of searching for them in the store.

With crypto coins, gamers will be able to transfer purchased digital assets to other incredibly popular games like Fortnite or PUBG. Each of them attracts over 250 million players. Gamers who own rare, expensive items or unique character skins could even rent them, achieving money and paying fees to the developers. It means that the grey market of accounts and items would become useless. 

Current State of The Field

The opportunities described above are still mainly on paper, but examples of bright startups already exist. Successful Beijing-based mobile-development platform Cocos-2d-x has started a new blockchain-driven project Cocos-BCX with $40 million funding. Cocos-2d-x has attracted over 1 million mobile game developers, so the company can encourage them to adopt BCX. As a result, this cryptocurrency has a chance to penetrate the market, involving thousands of developers and tens of millions of users. 

The main questions to both developers and gamers today are:

1. With so many gaming cryptocurrency startups, which of them will win? And is there really a chance for one to catch on? 
2. What will happen to systems that fail to become universal?
3. How to determine the fair price of assets?

In Summary

Even though there are still questions, and the existing systems are far from stable functioning, the chances for the field to grow may be bigger than we can foresee. Considering an investment in the biggest market players may be a good idea as at least one of them will find a way to become universal.