Since Satoshi Nakamoto introduced Bitcoin in 2009, the popularity and usage of cryptocurrencies have seen unparalleled growth. As a result, hundreds of other digital coins, or ‘altcoins’, have emerged including Ethereum, Ripple, Litecoin, and Stellar. Over time, people have developed and advanced these digital coins with special features to support various economic sectors and use cases.
Now, numerous companies are accepting payments using crypto, including giants like Microsoft and Tesla. Even online gaming operators are shifting their attention to blockchain, offering players the option to use these digital coins for transactions. So it’s safe to say that next to financial institutions like banks, crypto plays an integral role in the business sector.
But unlike traditional institutions, crypto eliminates the need for middlemen when making financial transactions. That means when trading using blockchain technology, you get lower transaction costs, improved security, and more transparency. As such, both businesses and traditional players have been forced to reevaluate their strategies and look into crypto integration in response to this disruption.
One of the major sectors experiencing seismic change due to the growing popularity of crypto is the world of investment. Before, banks and brokerages made money off the transactions they facilitated when people invested. While that was a source of income for these institutions, it was a financial burden for investors, as it could impact their wallets negatively.
Then came crypto, a decentralized platform that allowed traders to invest using a peer-to-peer system. These digital coins made it possible to bypass the brokerage resulting in lower transaction charges, ranging between $0.50 and $2.50. Moreover, crypto exchanges allow people to find buyers and sellers within the same app, aiding in the shift from using brokers to more direct trading.
On top of simply being a means of making investments, crypto has shown to be a profitable asset to invest in. Due to its volatile nature, digital assets are attracting investors seeking big rewards by taking high risks. Even if you prefer longer-term investments, there are a few stablecoins, like Bitcoin, that you can hold for long periods and focus on long-term gains.
Players are increasingly turning to crypto gaming because, in addition to lower processing fees, they experience more security and speed. Because of this, most online casinos are offering more crypto options for their players to use for transactions. Gone are the days when you needed to have a bank account or credit card to process payments; now, both parties involved can transfer funds directly to each other.
Unlike bank and credit card transactions which take 3-5 days, crypto payments to and from a gaming account are almost immediate. The average deposit and withdrawal times using crypto usually take several minutes to an hour to complete. Ethereum, which usually runs on its own blockchain, facilitates the fastest transactions, lasting about 15 seconds.
Another crypto feature that has further fueled crypto’s popularity in online gaming is its ability to cross borders between countries. You see, there are places where playing real-money games online isn’t an option so players use sweepstakes casinos as they have play-money. But with crypto, players can make safe and anonymous payments using coins like Bitcoin or Ethereum since they are universally accepted.
As mentioned above, transparency is a key feature of crypto transactions. That’s because, every time you transfer funds between two different wallets, a record is made and stored on a public ledger. The ledger is immutable so no one can alter any changes made and you’ll always have a point of reference for every transaction made.
The information stored on this ledger is then distributed across a network of computer systems, increasing its security. Network stakeholders refer to these systems as nodes, and they constitute electronic devices that maintain copies of the ledger and keep the data consistent. If anyone tries to change a transaction on the blockchain, they’d have to manipulate every node which is virtually impossible.
In relation to businesses, over 80% of small companies point to cash-flow problems as the main cause of closure. If you’ve ever had a good business deal, only to have it disputed in a bank, you can relate to the frustration that lack of complete transparency brings to a business. Some firms have chosen to avoid these scenarios by using digital currencies as they leave behind traces that no one can be able to modify.
Online gaming sites are at the frontier of integrating crypto in their payment systems, but they are not the only businesses taking advantage of them. Recently, Shopify has allowed its merchants to accept crypto payments through Crypto.com where they can use 20+ tokens. According to the website, buyers can also make transactions using Coinbase and BitPay.
Travala.com, a company that allows users to buy tours and book hotels, also accepts Bitcoin, Ethereum, Tether, and DAI. Microsoft, PlayStation, Namecheap, Tesla, and Badoo have integrated Bitcoin payments, too, allowing users to purchase products using digital currency. As we dive deeper into the digital age, you can expect more businesses to embrace this trend to offer a seamless, secure, and fast way of making payments.
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