If you were to ask anyone unfamiliar with the crypto gaming space about crypto, they’d tell you about Bitcoin, as it is the most popular cryptocurrency. But as times change, altcoins, alternatives to Bitcoin, have taken a big slice of the market. Some big-name altcoins include Ethereum, Litecoin, and Tron.
According to CoinMarketCap, as of the 26 February 2024, Bitcoin had a 51.9% share of the crypto market cap, down from 70% a few years prior, with altcoins catering for the rest. Crypto gaming traces its roots to as early as 2014 when the entire concept of NFTs was just popping up in the game. It was also around this time that many online gaming sites started integrating crypto as a payment method.
Later on in 2017, crypto would start to gain footing, with blockchain-based titles like Cryptokitties utilizing smart contract technology. Since then, the landscape has evolved significantly with play-to-earn games and the adoption of crypto in the purchase of in-game items.
Why is Altcoin Gaming on the Rise?
Altcoins are particularly gaining traction in this field, and with good reason too.
Altcoins are Relatively Cheap
Unlike Bitcoin, which costs tens of thousands of dollars, many altcoins come with a much smaller price tag, making them more accessible to players. With the rising popularity of cryptocurrencies, gamers are eager to explore these cheaper alternatives for investment opportunities.
These altcoins offer what experts call “asymmetric risk,” where the profit potential outweighs the risk of loss. Buying into altcoins is like getting a full share of the gaming action without breaking the bank. Take Litecoin, for instance, it started at a mere $4 in 2017 and has climbed to $75 today, offering gamers a chance to level up their investments over time.
Lower Fees and Faster Transactions
A recent survey found that 40% of gaming in the US involves blockchain technology, and half of those players admit to owning cryptocurrency. However, popular blockchain-based games and gaming sites, like those using Bitcoin, often face issues like high transaction fees (gas) and slow processing times, especially when the network is busy.
In the US, typical Bitcoin transaction fees can reach up to $7, which can eat into your earnings or deposits on gaming platforms. This can make in-game transactions expensive and frustrating. To tackle these problems, many gamers are turning to alternative cryptocurrencies like XRP, Flow, and Sandbox.
These coins, often built on newer or specialized blockchains, offer lower fees and faster transaction times. For instance, games using Polygon, developed by San Francisco’s Anatoly Yakovenko, have fees as low as $0.0005 to $0.2, and transactions are processed in seconds rather than minutes.
This makes in-game purchases, deposits, withdrawals, trades, and rewards smoother and more affordable for players. It’s for this reason that many top American online casinos are now embracing a variety of cryptocurrencies beyond the mainstream options. They’re even offering bonuses to encourage players to use these coins, recognizing the benefits they bring to both gamers and the gaming industry.
Constant Innovation with Altcoins
Altcoins, like Ethereum, XRP, and Solana (SOL), are always trying their best to offer affordability and functionality where Bitcoin falls short. With Ethereum’s versatile blockchain, you can automate tasks and engage more seamlessly with the network, enhancing your gaming experience.
XRP simplifies mining, making it accessible even to newcomers. Solana steps in with scalability and security at a lower cost, making transactions smoother and more affordable. As these altcoins address the limitations of traditional cryptocurrencies, they’ll continue taking online gaming by storm.
Institutional Investment in Altcoins is Expanding
With institutional investors diving into digital assets, the spotlight has shifted from Bitcoin, towards the lesser-known coins. Big investors aren’t just asking whether to invest in crypto anymore; they’re wondering where to put their money within the crypto sphere.
This shift in mindset is significant because it means more attention and funding flowing into altcoins. Additionally, the fact that numerous credible institutions are investing in altcoins, increases the coins’ credibility and gives gamers all the more reason to use them.
‘Altcoin Season’ is Here
Moving from the realm of gaming, altcoins are generally on an upward trend that will only go higher. Dubbed “Altcoin Season,” these alternative cryptocurrencies are making waves, potentially challenging Bitcoin’s long-standing reign. According to Ron Levy, CEO of The Crypto Company, this shift, known as the “flippening,” is bound to happen.
While Bitcoin remains a powerhouse, a plethora of altcoins are emerging with unique purposes, opening doors for diverse opportunities. From decentralized finance (DeFi) to immersive gaming experiences in the metaverse, the rise of altcoins is reshaping the gaming landscape. With so many options to explore, it’s no wonder why more gamers are diving into the world of altcoins.
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