The Gaming industry could be Bitcoin's saviour
Back in January 2015, The Telegraph declared that “Bitcoin is dead ”. Over the last few years, the digital currency has been subject to major knocks in credibility. Yet the gaming industry may save the ailing currency…
Reasons for the fall of Bitcoin
The real problems started when Bitcoin-based drug dealing website, Silk Road was taken offline by the FBI in October 2013. The next year, trading site Mt Gox went offline amid a scandal involving 774,000 missing Bitcoins (£285 million). The owners of the site later went bankrupt.
The scandal caused a 50% fall in the value of Bitcoin to £372. In May 2016, the value of Bitcoin stands at roughly £318.
Here’s where the gaming industry comes in…
As it stands, Bitcoin accounts for just a small fraction of the total online revenues in the gaming industry. Yet it is clear that there is a wide gap in the market for operators to make significant income from its use. After all, Bitcoin allows faster payments to both operators and players and is relatively low cost.
The Isle of Man is a major player in this area as a result of its plans to regulate and plan the use of Bitcoin. Meanwhile, some gambling operators continue to embrace the currency. Indeed, there are more and more Bitcoin-dedicated poker rooms – a major innovation.
Encouraging investment in Bitcoin-based gaming
Bitcoin’s capacity for innovation is clearly what attracts many of these new gaming site operators. Yet until well-known and respected operators take on Bitcoin, its supremacy would seem some way off. Of course, when the time comes that punters can play at online casinos such as https://www.europalace.com/ using Bitcoin, this will undoubtedly make it seem more credible.
Yet for now, it is much too speculative to assume that Bitcoin will overtake more traditional forms of currency in online gaming, or that it will become any kind of major force in the industry.
Security is incredibly important in the world of online gaming. This is why some of the major players in the industry are still reluctant to accept Bitcoin; a fact not helped by the aforementioned Mt Gox scandal.
In fact, security has already proven an issue for Hadjuk, a US Bitcoin gambling site. The site’s soft launch was compromised when players began setting up multiple and using them in combination as a means to steal credits. This was just a soft launch though, so we’ll see if the site developers are properly able to address such issues in the future.