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Gaming Could Stop the Crypto Crisis
10/11/2023

Gaming Could Stop the Crypto Crisis

10/11/2023
4,6

A couple of years ago, various lines of business dreamed of adopting cryptocurrency, seeing it as a progressive tool. However, the looming crypto winter brought problems and many started abandoning their crypto plans. The relationship between the gaming industry and cryptocurrencies has had its ups and downs. And the two seem to be building trust in each other again, as their interaction is a crucial period for a progressive technological future.

Broken trust

The crypto boom of 2021 has truly blinded many. Cryptocurrencies quickly became a tool in the hands of speculators and unscrupulous market participants. As a result, the industry suffered multi-billion dollar losses and attracted the attention of regulators ready to tear the cryptocurrency industry down to the ground. Many have lost interest and confidence in cryptocurrencies. The rest of the market is keeping the crypto industry afloat, wondering if cryptocurrency will survive in the current environment.

Regulators are sinking their teeth into the crypto space, bringing the industry to a new bottom of the crisis. As it turns out, it can be overcome thanks to the gaming industry. Coinbase believes that regulators need to show successful examples of cryptocurrencies, something that is happening in the gaming industry. But how, if the relationship between cryptocurrencies and gaming is strained?

The gaming industry is a gold mine

Why is there no progress in crypto gaming? The crypto industry and the gaming business could have gone down the path of a mutually beneficial relationship. But that didn't happen for a number of reasons. When cryptocurrencies were at the peak of their popularity many companies and gamers decided to hop on the last wagon of the crypto train. They had a chance to take advantage of cryptocurrencies and the whole Web3 world to significantly advance their development and strengthen the market for digital assets. However, that didn't happen. Probably because they either didn't see these advantages or followed a long-checked and selfish path of speculation. Clear examples in the form of Axie Infinity tell us that crypto gaming has become exploitative. Think back to how Filipinos quit their jobs en masse for profit in Axie Infinity. Players turned a blind eye to the abysmal gameplay because, at the end of the day, the game was making them money. But very quickly, players and investors recognized that their bets on the crypto gaming trend as it was initially presented to everyone were disappointing.

At the moment, there is a tiny gap between traditional video games and crypto games: they are not much different. The dominance of quality traditional video games makes it difficult for crypto games to compete. And gamers haven't just lost trust in crypto games, they simply don't want to play it.

So why, despite failed and in some places clumsy attempts at first interactions, can the gaming industry save cryptocurrencies? From an economic perspective, the gaming industry is a veritable El Dorado. The gaming industry has formed a solid financial foundation and generates staggering revenues for companies. It is a $200 billion dollar market. For example, League of Legends alone generated $20 billion for developer Riot Games. Blockchain and cryptocurrencies can address the loss of potential revenue for developers, and players owning the game's cryptocurrencies may not have to fear company bankruptcy. In addition, the cryptocurrency market could strengthen as assets would be created and spent in a closed loop. Blockchain could provide a robust trading system. All of this was initially understood by participants in the gaming industry when they entered the crypto space. However, all of this was channeled in a different direction that has gotten the GameFi stamp of approval. Games based on only one goal (making money) quickly became a chore: ordinary asset trading, but in a new wrapper.

Despite the broken trust, cryptocurrencies and the gaming industry have great potential to create a healthy and mutually beneficial relationship. But what will it take for crypto gaming to continue to thrive? Simply put, two things need to be done: regain gamers' trust in cryptocurrency and make a quality, well-crafted video game to keep gamers' interest. You can kill two birds with one stone: when developing an interesting, exciting game, make cryptocurrencies an inconspicuous but necessary addition. And in fact, this approach might actually work. For months, rumors have been spreading online that the popular game GTA 6 is going to introduce cryptocurrencies. And while the developer has not commented on the rumors in any way, gamers and the cryptocurrency community look positively at such a possible aspect in the new game franchise.

Hope lies with the gaming companies

Really good and successful games, like blockchain networks and cryptocurrencies do not appear immediately. It is the result of years of development that really pays off in the future. And game companies are finally starting to realize this. Take-two Interactive Inc., Konami Holdings, Ubisoft, Square Enix, Krafton, Bandai Namco and Nexon continue to slowly but surely develop blockchain-based games, implementing cryptocurrency while focusing on the gameplay itself.

Immutable, which specializes in blockchain games, is working with Amazon Web Services (AWS) to develop infrastructure solutions for the cryptocurrency industry. Together, the companies want to make crypto gaming not only interesting and robust, but also simple and accessible.

The gaming industry and cryptocurrencies are ready to come together again despite the first failed interaction and give each other what they've been missing all along.
 

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