The virtual currency, Bitcoin, has quickly emerged as the currency of choice for many different industries. The currency, created by an anonymous entity online has exploded onto the scene, and people have found numerous uses for it. While it isn’t managed by a central bank, it has proven its utility time and again. The latest segment of the economy where Bitcoin has had an impact is in gaming. Why exactly is Bitcoin becoming the preferred method of payment in the gaming industry?
Protects Developers
One of the biggest reasons that gaming is moving toward Bitcoin is because it protects the financial interests of developers. When a developer sells a game online for download, it can be risky to accept payment with a credit card. By doing this, a buyer could pay for the game with a card, download the game, and then request a charge back with their credit card company. In this situation, the developer would have the money for the charge taken back out of their account and given back to the customer. The customer can then play the game and keep their money. While this isn’t the intention of honest gamers, it does happen quite a bit, and it has an impact on them.
Because of this risk, developers who accept credit card payments have to price this into their game prices. They know that a certain percentage of purchases will be charged back, and in order to make money, they have to raise their prices accordingly. By selling games in Bitcoin, developers can charge a little less for their games because they know they know that all sales will be permanent.
Convenience
Another big factor in Bitcoin being used for gaming is the convenience that it provides. If you’re a Bitcoin user, you have your Bitcoin stored in a wallet somewhere. In order to purchase games with that Bitcoin from a traditional merchant, you would have to convert that to U.S. dollars by selling the Bitcoin and then use those to buy your game. By purchasing games with Bitcoin, you take out an unnecessary step and simply transfer the currency instantly. From the developer’s perspective, they also view it as convenient because the money is instantly transferred from person to person without going through a middle man. There are no bank policies to worry about, or risk of fraud, as the money goes directly to you. This makes the use of Bitcoin an extremely attractive option for both gamers and developers.
Lower Fees
Bitcoin makes it possible for developers to charge a lower overall price because they don’t have to factor in as much money to cover fees. When a customer is interested in buying a traditional game with a credit card payment, the credit card processor gets a percentage of that transaction that can be high. Sometimes, you might pay a 3 or 4 % credit card transaction fee in order to buy a game. With Bitcoin, this concern goes away as there are no credit card fees to worry about. A small fraction of a Bitcoin does go to someone to verify the transaction for you, but it’s typically less than the cost of a credit card transaction fee. This allows your Bitcoin to go further and ultimately get you more games than if you used dollars and credit cards to buy them.
Overall, Bitcoin is an exciting technology that has the capability to transform financial transactions. The gaming industry is starting to wake up to the immense potential that it provides both buyers and sellers.
