There is a significant increase in the value of the gaming industry with the integration of blockchain technology. Is there something missing that needs a clear call to action? In traditional finance, an asset is crashing if its price drops by over 10% within a single day. Crashes are often triggered by impactful and sudden moves in the cryptocurrency market that could cause panic among the investors who exit the market en masse.
We examine the potential and limitations of blockchain games in apps and most importantly, its future. Will the cryptocrash impact its current usage during tournaments?
Let’s head straight away to clearing a few doubts.
How does cryptocurrency influence gaming?
Regular gamers and potential users of online tournaments can pay via cryptocurrency. With blockchain it is secure and all transactions are verified. As there are different games it is easy to purchase tokens, updates, or in-app avatars. It is possible to get power-ups, new themes and awards.
Blockchain technology is being used in the form of:
- Crypto-games genre
- Play virtual events
- Compete in tournaments
- Creating gaming profiles
In the last few weeks, several cyrptocurrencies are crashing. It is not sparing the video game industry. These are tough times to brace and remain strong. Fears turned true when Binance stopped withdrawals with the steep downsizing in Bitcoin. This development led to gloom and doom for a temporary period. However, in no way the passion for gaming has dimmed.
Players have not withdrawn
Those who play passionately have not given up their boots nor have the investors stopped financing the games. Axie Infinity continues to work on the ‘Play to Earn model.’ With Ethereum, the world of Decentraland has not yet collapsed. People can still hang out, even buy & sell a property and explore the metaverse (not related to FB)! Yes, a few investors have pulled out. Popular games like Cryptokitties, The Last Will, and God unchained are still in the marketplace.
Largely the scenario continues to have faith in changing times for blockchain games. The crypto-pyramid scheme will be slow to pay off. Currently, limitations have derailed the games’ equity in the market. All businesses run on challenges and this is just one of them. Everyone plays to win.
Cryptogames have different storylines but depends on the gaming procedures. User accounts, blockchain type/ wallets, and buying required digital currency is a mind game altogether! The regulatory authorities have tightened their laws in the case of MANA and THETA. If gamers continue to thrive on well-known currencies, the problems are not abrogated with the crypto crash.
The gaming industry prospers due to competition. New games will always add to the excitement and platforms will continue to evolve.
Reasons for crypto crash
Crypto crash happens because of its volatility and uncertain nature. Investors and entrepreneurs feel crypto crash happening in blockchain gaming can have longer-term damage. A person who is interested in investing money in crypto or has already invested should be aware that there are equal chances of its crash. The following are some of the reasons:
Low liquidity: The chance of high liquidity in the market is possible only when the trader can redeem any of his assets (invested in crypto) for cash. In addition, when an asset rises very quickly in price and surges to a record high, this makes a crash much likely to take place.
Monetary policies by the Government: A change in the monetary policy of the Government may affect the cryptocurrencies and they may crash drastically.
Security: Blockchain and network security are other factors that could cause a crypto crash.
Crypto crash impact on Blockchain Gaming
Crypto crash on Blochain Gaming can have a huge impact. While technical factors like demand play a vital role in Bitcoin’s price, other fundamental factors such as macroeconomic events, sudden implementation of regulatory changes or significant company announcements could cause a large crash in the market.
Unfortunately, most investors at present tend to think short term when it comes to cryptocurrencies which is another cause for their volatility. If you plan to hold Bitcoin for the long term, the chances are high that you could reap good returns in future. Though there is no guarantee that crash history will repeat every time, staying long term in good projects will always give you good returns.
Keep tuned in and remain invested! we would like to know your thoughts over this kindly share your inputs in the comment section below.