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How Crypto currencies have affected the Sports industry?

07 May 2021 Developer News
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Even a couple of years back, the users of traditional currencies were not so sure about the future of crypto currencies. Now, the usage of cryptos are a common thing in online purchases, acquiring trading assets, paying utility bills, etc.

Very recently they have impacted the sports industry too! Instead of confining its limits to banking and other activities, the blockchain technology used in crypto based dealing infiltrated the sports industry too. The blockchain based crypto transactions unlocked the payment doorways by introducing crypto coins that eased online fund transferring process.

Be it about betting on players via different sports betting websites, buy them for a club, etc. can be done by paying in Bitcoins. It’s much safer way to transfer the payments as the payment transfer is done within the secured networks of Blockchain technology.

A lot of sports club owners are even paying in cryptos to their club members nowadays.

According to renowned hockey player Nikolaj Rosenthal, the current CEO of Evonax believes that digital currencies are one of the most effective ways to unbolt multiple opportunities for those dealing in BTC coins.

According to Bitcoin Era Login, it’s another leap of digital currencies to become the new normal in e-sports business.

Time to explore how crypto currencies have impacted sports business in detail:

Smart digital token coins for the club-fans

The idea of distributing bitcoin tokens to the global fan base of any sports club is quite a unique strategy to roll the digital currencies in a market. Renowned football clubs like Juventus and FC Barcelona issue their own crypto tokens for distributing it within their fan base.  One of the key reasons behind it is to trigger the craze amongst their fans to buy the merchandise, use the tokens for taking part in voting the club’s decisions, winning the premium VIP seats in the Derby. Some clubs have also adopted crypto currencies for paying the players of the club. That has steadily raised the percentage of ICO for the Bitcoin issuing firms.

Impacted the e-sports economy

According to Newzoo’s research report, it has been seen that digital currencies have impacted the global e-sports. By 2019, it reached 380 million approx.

It has been seen that the e-sports economy generated 906.3 billion US$ and it reached around 1.5 US$ billion by 2020. That compelled maximum team owners to invest heavily in E-sports organizations. One such initiative influenced the involvement of digital currencies in the economy, steadily effecting the percentage of investment in e-sports.

The London Football Exchange (LFE) has already felt the heat of crypto craze post democratizing the club ownership.  They moved ahead with the idea to initiate ICO up to 4 billion tokens. The tokens can be acquired for gaining multiple discounts on the merchandise. The fans can also use these tokens for buying the tickets before an online match. If you’re thinking about the safety, then you need not worry about those.

That’s because each fund transfer is monitored under a secured blockchain network.  One such initiative eliminates the risk of data hack from the system completely.

Online betting turned easy

Online betting turned easy for the e-sports gamblers nowadays. The popular gambling apps provide multiple options to select a team by including the name of the players whom you feel perfect for an upcoming match. If your selection is a suitable suit then you can easily win the bet. That way, you’re earning a certain amount of bitcoin tokens as winning prize. The ICO given to you by the sports club in the form of a token amount easily hits your crypto wallet. That way, you’re winning a betting amount in digital currencies. Later you can get the cryptos converted in a traditional currency if you want without the involvement of any third party payment gateway site. That’s because, the entire conversion process of your bitcoins into any other form of traditional currency occurs in a secured Blockchain network.

The amount is credited in your account post the deduction of a nominal charge for converting the BTC’s into traditional currency. You don’t have to stand in the que or wait for the clearance from the era old traditional exchanges, often taking days or weeks. It takes not more than a few hours or a working day to convert your crypto currency into traditional currency in Blockchain network.

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