Cryptocurrencies and eSports share more in common than most people realize. In fact, most people see these two industries as something completely different. One tackles finance while the other focuses on video games, when in fact these two features are intertwined. Video games themselves, the ones you'd find on Steam that are primarily focused on single player experiences, can be ruled out, even if they come with multiplayer options. The whole essence of eSports is the skill that one person can bring to the table, and that's why games that require good mechanics and reaction times thrive in the eSports industry.
How are these industries, that at first glance appear completely different, actually intertwined? What unites them and what can they produce? The only answer to this is reward; cryptocurrencies can act as rewards that players actually cherish.
Reward Systems in eSports
Rewards are usually distributed through tournaments and various other activities that gamers take part in. Most of these rewards are monetary and are achieved by winning a championship or gaining some coverage. Although it's nice to see an example of people being rewarded for their skill, a very small portion of gamers actually experience it.
Therefore, the introduction of cryptocurrencies is considered to be one of the best ways to keep the player "hooked". Let's take the majorly popular game, League of Legends. The primary reward system for non-professionals is rank and the ability to purchase various champions. Take that out of the equation and what are you left with - Nothing, just personal satisfaction.
In fact, League of Legends is the perfect example. According to eSportsbets.ru the game has already introduced cryptos on its platform. However, the coins are not an integral part of the game, they're just outside rewards. Players are able to bring in referrals, through which they can be rewarded with coins, which are later exchangeable for fiat money or used on the platform itself. Now let's look at how this can be expanded upon.
Expanding Coins by Using Them in a Game
Pretty much every eSports game has a currency involved. Usually, this currency is acquired by playing a game or paying real money to get a boost. Whatever happens, this currency is unlimited, meaning that it does not hold a lot of value in the real world. For example, we see this with games such as WoW. But the problem with those types of games is hyperinflation because more and more currency is produced all the time. What Riot Games can do in this case is to change their in-game currency system to cryptocurrencies and emit a limited amount of coins. Depending on the demand, the coin can grow in price and act as more than a currency used for buying some bits and baubles in an in-game store. The larger the player base, the more likely the cryptocurrency will be successful.
Let's look at an example. Imagine that you want to buy a costume for your character and it costs about 100 Imaginary dollars. During the introduction of the cryptocurrency, the needed amount can be emitted to mirror the initial price. So once the emission happens, the outfit would cost 100 crypto coins instead of just 100 Imaginary dollars. As more people buy the coin, the stock runs out, and we begin to see prices decrease, which benefits people who bought and held onto coins early on. This is an amazing way to introduce an economy to your game and spill it into the real world as well. Furthermore, it will develop the players' financial education in the future.
So in the grand scheme of things we can view eSports and crypto collaboration as a sort of financial education delegation for its player base. No more will there be articles talking about how Video Games harm the young.
With the introduction of the new coin, more and more people are going to become active market participants, without even noticing it. If the player base is big enough, then the demand can create a growth curve for it. The value of the currency itself will go up and introduce these players to larger more impactful coins such as Bitcoin or Ethereuem.
The benefit to the market and the influx of new participants is guaranteed. The history of Russian eSports growth has shown us that even though the industry is still in its development stage, it is already rivaling various other markets. The growth that it has been seeing is remarkable, with League of Legends being responsible for most of it. During the World Championships, there are thousands of attendants and millions of spectators worldwide. If that isn't lucrative than nothing is. In fact, it is believed that the eSports industry will eventually exceed $1 billion in 2019, and from there, the sky is the limit.
What's so special about this industry is that it never gets boring. It incorporates various genres of games, therefore if a player is bored of playing a Real Time Strategy, or even watching it, a completely different game is just a click away. Keeping this market so vibrant is what's making it so popular. There is literally a 0% chance that somebody won't be able to find a game they enjoy playing or watching for that matter.
Overall, the market will gain more players that are directly involved in the exchange of the coin they generate through playing a game. Similar developments are already being seen with Tron and various other coins. But it is still not seeing large scales that are required to change the market.