Could video games turn into a liquidity source for cryptocurrencies?
One of the biggest disadvantages of cryptocurrencies is its liquidity. It’s quite hard to cash out all of your profits if you’re above the cap of a specific cryptocurrency exchange.
On Binance for example, you’re forced to withdraw only 2 BTC at a time, and there are dozens of investors with hundreds of Bitcoins sitting on exchanges waiting to be withdrawn.
The issue that arises here is that the exchange can get hacked at any moment and all of those Bitcoins can simply disappear. Most crypto exchanges have a refund policy were something like this to happen, but it’s never a good experience.
Because of this, many crypto investors have started looking for alternative liquidity providers on the web. These could’ve been websites on the dark web, selling various goods for cryptocurrencies, or newly formed gaming websites that accept Bitcoin deposits, etc.
However, what the crypto community may not realize, is just how close we are to seeing video games either being sold for cryptocurrencies, or the microtransactions and in-game bonuses being acquired for them.
Several liquidity sources
One such example is League of Legends that introduced their own cryptocurrency for in-game purchases that are mostly cosmetic, therefore the community didn’t have an outrage or anything.
The fact is that League of Legends was one of the first games that truly introduced cryptocurrencies to the gaming world. Before that, most games were based on off-of Bitcoin and were made through Dapps. LoL was the first third-party developed game to accept digital currencies.
This started a trend in the eSports scene, which is basically video game tournaments. Now the innovation is in the “snowball phase”, meaning that it’s getting bigger as time passes by.
In fact, several Russian eSports experts have mentioned that the industry is going to boom in Asia rather than Europe, which is absolutely perfect for crypto companies to utilize.
As we all know, many crypto companies like to HQ in Asian countries like South Korea, Singapore, and Japan, which are on the highest rating in terms of eSports.
Having LoL expose cryptos to such a vast array of video games in the industry would provide crypto investors multiple ways of “cashing out” their profits, or simply utilizing their cryptos for something beneficial.
Now, it’s not something like a real estate investment, but it’s still something that could add up to overall crypto adoption.
Steam is an amazing alternative as a liquidity provider for cryptocurrencies, but unfortunately, the platform no longer accepts Bitcoin payments due to market volatility and “awkwardness when purchasing games”.
Steam is the largest video game marketplace in the world, if you can imagine a game, it’s definitely being sold on Steam.
The problem is that the platform used to accept Bitcoin as a payment, but the recent volatility, especially the one during 2017, forced the company to abandon this policy.
As cryptocurrency volatility calms down in the long run, it’s possible for Valve (the owner of Steam) to bring back crypto payments. Judging by the fact that Steam managed to generate over $4.3 billion in revenue in 2017 alone, it indicates just how much trading volume can be achieved if Bitcoin payments come back.
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