Can online games like Fortnite help in the wider adoption of cryptocurrencies?
On the first of January 2019, one of the most popular online games with over 200 million active players, Fortnite, has announced that it has introduced Monero (Click to buy it) as a form of payment in its merchandise store. Does it mean we are finally going to see wider adoption of the cryptocurrencies working as digital currencies, not a form of investment? Why is it important that online games start accepting cryptocurrencies?
First of all, it can be presumed that the overall idea of digital currency originated from games. It started with the popularity of World of Warcraft, the Massive Multi Online Role Playing Game released in 2004. Soon after its release, on eBay and online auctions websites, there were many offers for buying in-game currency using real, physical money. We can surely assure that this was one of the reasons which lead to the creation of Bitcoin.
As WAX survey on gaming communities, it seems that these groups are among the most supportive to the idea and usage of cryptocurrencies (what to do with cryptocurrencies article link). It came out, that 55% so-called Millenials (people who had been born close to 2000) had already used cryptocurrencies. In general, almost 50% of the whole gaming community are owners of some cryptocurrencies. Therefore we can surely state that gamers already are one of the biggest groups of supporters of cryptocurrencies.
As well, from the side of game developers, accepting cryptocurrencies as a form of payment for in-game items, skins or any other purchasable DLC would be very beneficial. The commission fees taken by the traditional payment service providers are high (often as a percentage of the transaction, but no less than some specified value). As well money from these transactions are sent usually to the developer only once in a couple of days.
This is why such solutions as our API services (https://linkkoin.com/LinkkoinSolutions.pdf) can be very helpful for game developers in order to start accepting cryptocurrency payments. Most of the in-game transactions are small (usually in a range of $5-$30 or equivalent) and frequent. With cryptocurrencies, due to the nature of blockchain, transactions are much faster, cheaper and generate less cost than with traditional forms of payment. In other words: Let's say that some DLC to the game costs $10. Traditional PSP will take (depending from the amount transactions) ca. $1+percentage of the transaction itself (like 1%) - so then after a couple of days, less than $9 will be sent to the developer bank account.
In case of cryptocurrency transfers, the fees within the blockchain are (with recent forks) much less than 0,01% of the value. This would mean that more than 10% of such transaction value will stay in the hands of the developer as a profit, instead of being a profit of PSP provider.
And as the gaming community is already full of crypto enthusiasts, this definitely can be beneficial for both sides.
For gamers, as transactions with cryptos are fast and often more secure than traditional methods. As well there is no minimum transaction size imposed by the card provider (what can be an obstacle for microtransactions). And some members of the community understand that it could be hard to explain to their partners why they spent money for something such “irrelevant” as skin to their favorite character/weapon by checking card history. When sending the cryptocurrency payment in a form of blockchain transfer, such threat does not exist.
For developers, accepting the cryptocurrencies payment simply means that their profit is significantly higher in comparison to other forms of accepted payment methods.
To sum up, the adoption of cryptocurrencies in the gaming industry is a typical win-win situation. Actually, we can even call it a triple win case here, and a visible technological revolution. And we, Linkkoin, would be more than glad to participate in it, by providing our API, enabling accepting cryptocurrency payment in games.