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Crypto companies have been pumping money into esports for a number of years now. You have coins, trading platforms, and investment funds, all sponsoring events. Bitcoin has been used in a few tournament prize pools. And you can even use crypto to bet on gaming matches. But what is the obsession crypto users have with esports, and how do they expect to turn a profit?
One reason some say why crypto companies are throwing cash at esports is that both industries have a similar target audience. The average crypto and esports enthusiast is male between the ages of 18 and 35, tech-savvy, and spends a lot of time online.
Crypto companies have witnessed the explosive growth of esports and want to turn as many fans as possible into crypto users. Teams like Fnatic, Gen.G, Misfits, Cloud9, TSM and others have dabbled in this space with crypto partnerships.
However, paying for sponsorship is only one way crypto is shaking up the industry. Let’s look at some other ways.
Are Bitcoin Prize Pools the Future for Esports Tournaments?
Crypto offers a different way to fund esports prize pools. This is because crypto is permission less and decentralized. Moving large amounts of money around the world is notoriously difficult. It can require lots of paperwork, fees and take weeks. Crypto is a run on a global blockchain allowing huge sums of money to be transferred anywhere in the world virtually instantly and for a nominal fee.
Crypto is borderless, so esports tournament organisers can bypass banks and governments interfering with them moving money. Crypto can also speed up the payout process. As soon as the tournament is over, players can receive their winnings within a few minutes. There is no waiting for weeks for the cash to clear the tournament organiser’s bank account and then having to wait for the player’s bank to credit the money.
Crypto can be used by tournament organisers in countries with strict currency controls. Some say they can pay international players and move money overseas without raising any red flags. Crypto can also help tournament organisers avoid dealing with extremely volatile local currencies. In places like Latin America and other territories, some players might like the option to receive Bitcoin rather than their local currency.
The great thing about cryptocurrency is that thanks to exchange platforms, trading crypto can be converted to fiat for only a slight fee. Some might say these platforms give players and tournament organisers more flexibility.
Crypto Makes Esports More Accessible for Fans and Players
Cryptocurrency is a facilitator of payments. With crypto players, fans and organisers can instantly send money around the world. Could this allow more people to enjoy esports? For example, let’s say an esports fan lives in a country with a currency that isn’t accepted there, they could use crypto to purchase gaming equipment and even bet on esports matches. Without crypto, some might say this fan would be barred from fully participating in esports due to issues with the global financial system.
Online betting is one of the major use cases of crypto. Esports has exploded in popularity thanks to top betting sites like GGBET, where you can bet on almost 20 different gaming disciplines – Dota 2, League of Legends, Smite and others.
Crypto allows clients to bet on their favourite esports teams without incurring fees, not running afoul of their banks, and keeping their gambling habits confidential. Thanks to crypto’s speed, players can deposit and withdraw virtually instantly. In the past, players might have had to wait weeks to receive payouts, though this is less common nowadays.
Crypto also helps esports betting sites to offer their services to as many people around the world as possible. Not to mention operators are saving millions of dollars in fees by using Crypto, and due to crypto’s deflationary nature, by holding crypto, some sites have made a fortune. Crypto facilitates fast, anonymous and global payments at sometimes low fees too.
It seems that crypto and esports will continue to be linked in the future. While the community is divided over this subject, the adoption of crypto looks set to grow in the future. We expect crypto’s use cases in esports to expand as the space becomes more mature. However, in the meantime, keep on the lookout for other esports tournaments to be sponsored by cryptocurrencies you have never heard of – and the odd tournament to feature a Bitcoin prize pool.
