This year marks the 10th anniversary of the first stablecoin. But it is over the past year or two that stablecoins have started to really hit the headlines and have a significant impact on the crypto market. The standout example is Tether, which is now the third largest cryptocurrency in terms of market cap, behind only Bitcoin and Ethereum.Tether is pegged in value to the USD, making it no less volatile than an established fiat currency, and this stability has stood the test of time. In particular, it held firm while others crumbled during the difficult market conditions in 2022.Proven stability boosts consumer confidenceThis proven stability has eared Tether a higher degree of consumer confidence than other cryptocurrencies. At the same time, vendors who use the UniPayment gateway can accept USDT payments and other stablecoins, and this has made crypto more accessible for everyday transactions.The idea of using crypto for everyday purchases is certainly in closer alignment with Satoshi Nakamoto’s original vision than the high-risk boom and bust trading exploits that have made billionaires of paupers and vice versa over the past 15 years. But even this is only the beginning. The gaming industry is the fastest-growing leisure and entertainment niche on the planet and in terms of revenue, it is already bigger than movies and music combined. With around three billion people playing games worldwide, the industry has been evolving at lightning pace over the past decade, and stablecoins are set to transform it in exciting new ways.Gaming without bordersA core benefit of crypto is that it is a secure, fast, seamless and inexpensive way to make cross-border payments. B2B companies have been taking advantage of this for some years, and stablecoins provide a way for the gaming and esports industry to do similar, without the volatility risk associated with Bitcoin and others.Traditional physical sports take place in specific cities, countries or regions, but with esport, geography becomes irrelevant. That brings challenges, however. For example, back in 2018 at the height of the Fortnite hype, Epic Games announced a $100 million tournament. But the company ran into problems trying to make payments through traditional channels to winning players and teams that were scattered across the globe. Blockchain technology is an ideal solution and stablecoins protect both organizers and competitors from volatility risk.Converting virtual rewards into real world assets Those of us who grew up in the late 80s and early 90s might remember playing games like Sonic the Hedgehog and dedicating endless hours to accumulating rings and other virtual treasures. We probably also remember the disapproving glances from our parents who wished we would do something more productive.Stablecoin gaming in the metaverse opens up the possibility of earning real money and other rewards like physical merchandise by converting in-game rewards to spendable cryptocurrency. The same could apply both ways, for example providing the opportunity tobuy equipment for an in-game character that has value outside the four walls of the game. By using stablecoins, the transaction and your ownership of this asset is tangible and can always be “cashed in” or have its value transferred to another game.It is easy to envisage an entire virtual economy taking shape, and once it began, it would rapidly grow and evolve.A mega future for microtransactionsWe said earlier that stablecoins have been around for a decade now. But their influence on the world around us is still in its infancy. However, 2024 could be a watershed year, and given its position at the technological forefront, gaming is likely to be among the first sectors to take full advantage, as micro-transactions are already an established feature of this market.As the name suggests, they are small in themselves, but given the number of gamers in the world, their collective influence could be significant. Research by LendEDU found that Fortnite players were spending an average $85 per month on in-game purchases. Stablecoins could make these transactions faster, cheaper and safer.
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