Ever since Bitcoin arrived and began shaking up the global financial market, it’s created a vortex that’s slowly subsumed other industries. Most people may have heard of crypto wallets and exchanges, which began popping up to service the cryptocurrency industry.
However, the industry at large has created and affected many other industries along the way too. Those like crypto casinos, and so-called crypto and blockchain games are now invariably tied to the fate of major cryptocurrencies, like Bitcoin. This is why Bitcoin’s halving has the crypto blockchain gaming market on edge, as everyone wonders how it’s going to benefit the crypto and blockchain gaming industry.
The Gaming Industries Affected By Bitcoin
Whether you’re into cryptocurrency or not, chances are at some point, you’re going to come across it, whether through crypto gaming, gambling, or in other ways.
Crypto casinos are one of the main gaming industries that may be affected by the Bitcoin halving. Crypto casinos are online betting sites that allow players to wager using digital money, like Bitcoin. For online casinos that specialize in cryptocurrency, their ability to offer huge incentives like 200% welcome bonuses set them apart. Crash gambling games, for example, are well known for such generous offers that traditional casinos simply can’t compete with.
While online casinos and cryptocurrencies have now forged a long-lasting and mutually beneficial commercial alliance, the same can’t be said of crypto and blockchain gaming. It may seem strange, but from the time this industry started, it’s been defined by countless bouts of uncertainty. It’s often seemed to yo-yo between being the next big thing, and a dying idea that investors should steer clear of.
Crypto Gaming
It’s easy to conflate crypto and blockchain gaming since crypto gaming incorporates blockchain technology. However, it does so more in the form of making cryptocurrencies available to players to use for things like an in-game currency — basically the means of exchange to buy things or sell, buy, and trade items with.
These currencies typically take the form of non-fungible tokens (NFTs) specifically made for the game. Such games therefore offer players the chance to truly own their gaming assets, which may actually go on to have value in the real world too. It also offers players the chance to leverage tokens like they would any corporeal asset. By doing this, players have access to decentralized finance (DeFi) and can do things like earn interest on their digital assets.
Blockchain Gaming
Like crypto gaming, blockchain gaming incorporates blockchain technology into a game too. The difference is that these games may incorporate a crypto element too, or simply just incorporate an in-game ecosystem where everything is recorded on a blockchain.
Almost invariably, due to the close connection between the two, blockchain games usually make use of digital assets and cryptocurrencies to facilitate trade, help players truly own their assets, and have access to decentralized finance. Blockchain games may also offer players the chance to enjoy the game on a play-to-earn model. This means, players may be rewarded with or paid in cryptocurrency whenever they level up or make progress in a game.
How Bitcoin Halving Affects These Industries
Ever since Bitcoin proved its true potential as a digital asset that could pay out in very real money, it’s been the most sought-after cryptocurrency around. Bitcoin’s power to shift the entire cryptocurrency market worldwide even holds true for industries that seemingly have no direct tie to Bitcoin itself.
For example, crypto casinos may not solely use Bitcoin as one of their payment methods, if it’s even used at all. Despite this, any major shift in Bitcoin’s value outside the game in question can still affect the value of the cryptocurrencies used in it.
With this concept generally at play all the time, Bitcoin’s famous halving process has historically been followed by major shifts in its value. Now that it’s undergoing another halving, the last few months have already seen Bitcoin showing both bullish and bearish tendencies too.
If you aren’t aware, a Bitcoin ‘Halving’ refers to a process built into Bitcoin’s code to ensure it retains its value. The halving process means that at specific intervals, the production of Bitcoin will essentially be halved. In its final halving, Bitcoin will cease production once there are 21 million coins in the market to ensure the coin never becomes oversaturated and loses value.
Increased Investor Confidence
One of the major ways Bitcoin’s halving can affect the crypto and blockchain gaming industry is with increased Investor confidence. To that end, the industry has seen a huge drop-off, with more than 50% less investment pumped into it this quarter than it had last quarter.
Since Bitcoin’s halving usually triggers cryptocurrency trade frenzies that see everyone trying to capitalize on it, the cryptocurrency market as a whole is generally given a significant boost. The crypto gaming industry invariably benefits here too since increased confidence lures investors to the industry.
Better Standards
When the crypto and blockchain gaming industries were first developed, they were thought of as the next big thing in gaming. However, the industry soon found out that gamers are stubborn creatures of habit that no amount of monetary gain could change.
To that end, crypto games were notoriously poorly designed, boring, lacked quality, and were products of lazy development. Gamers weren’t against the idea, but wanted games they could still enjoy while earning crypto from them. Luckily, with all the new investment plans triggered by Bitcoin’s halving, most investors have committed to making better games with the kind of quality gamers can appreciate.
With major players like AAA game studio Ubisoft close to releasing its first blockchain game, this is one of the signals of intent that the gaming industry is taking crypto and blockchain gaming seriously again. This is due, not just to better the standards of the games, but to expand them beyond generic puzzle games.
Conclusion
All the increased optimism going on around the cryptocurrency world right now adds up to some great opportunities for crypto and blockchain gaming. With Bitcoin’s halving having already led to some seismic shifts in its value, the crypto and blockchain gaming industries have also benefited from it.
While time will tell if all the gains will last or fizzle and begin another slowdown later, for now, the crypt and blockchain gaming industry is optimistic again. Given its place in driving blockchain technology forward, most investors can only hope it succeeds, whether they have any skin in the game or not.
