With all the advancements in the cryptocurrency world, it’s amazing to see different industries using it. Cryptocurrency is a buzzword in various industries, including the financial one. But can a sports industry take advantage of cryptocurrency technology? The answer to this question is ‘YES.’
The sports industry has realized the potential that blockchain and cryptocurrencies can bring to attract sponsors, monetize fan engagement and engage a worldwide market in multiple ways that were not manageable some years ago. Passionate fans and all citizens of the digital world consume sports and any related content beyond the normal duration of a game.
Clubs, teams and sporting bodies are busy innovating to survive in the current digital world and meet the expectations of fans. The sports industry has not only responded positively but also devised new strategies to make sure fans and clubs remain connected in this socially distanced world, and cryptocurrency has allowed it to achieve this.
The industry has recognized that cryptocurrency is capable of revolutionizing the fan experience through increased fan tokens, crypto-sponsorships, non-fungible tokens and revenue streams. Currently, there are different types of cryptocurrency gambling platforms, including the likes of Bitcoin and Tether sport betting sites. Be sure to go through the following sections to discover more about how cryptocurrency will disrupt and revolutionize the sports betting industry.
The Use of Cryptocurrency in Sports
Before you can learn how cryptocurrencies will impact the sports betting industry, it is important to understand how it is used. Here are some of the applications of cryptocurrency in the sports world.
Safe Payment Methods
Tether, Bitcoin and other cryptocurrencies are being incorporated and allowed as payment methods. Fans currently use cryptocurrencies to purchase things like tickets and merchandise. On the other hand, clubs use digital coins to pay the salaries of players and transfer fees. Teams and sports organizations have also benefited from cryptocurrencies by implementing transparent and secure ticket exchange markets.
Player and Club Participations
Cryptocurrencies provide unique ways and solutions for investing in stadiums/clubs or sports persons. In most cases, these lack financial means to boost their sporting careers, stadiums and clubs. With cryptocurrencies, both huge and small investors are now in a better position to take a share in the clubs and athletes that they love and support.
The returns could include a certain percentage of the club’s or athlete’s future income. If you decide to invest in this manner, it means that you have become one of the club or athlete owners. As cryptocurrencies keep track of the rightful owners, the shares in these assets can be traded.
Any business needs customers in order to make cash. Likewise, fans are required to monetize sports. Both live spectators and fans who watch races and matches on television, as well as other platforms, spend a significant amount of money on merchandise and purchase tickets to games. Sports teams have already embraced the use of social media platforms for harnessing fan engagements, but cryptocurrencies could take this a step further.
Some clubs and teams have already introduced their own virtual currencies/tokens that fans could use on tickets, merchandise, beverages and food at games. This results in operational efficiencies meaning increased profit for the club.
Performance Statistics and Metrics
The world of sports produces a huge amount of data that is yet to be utilized fully. Performance metrics of athletes can be massively beneficial for setting up coaching and training plans. They help athletes to attain excellent results by deeply understanding their abilities.
Cryptocurrencies serve as reliable data banks of race and game data collected from trusted sources. The main benefit behind this idea is that sportspersons are able to understand their abilities better. In terms of coaching, coaches can use the data to create effective training plans.
How Cryptocurrency Will Disrupt and Revolutionize the Sports Betting Industry
There are many impacts that cryptocurrency will introduce in the world of sports. And these impacts originate from:
Fan Tokens and Cryptocurrency Assets
The pop-up of fan engagement tokens is one of the exciting innovations that have evolved between technology and sports. As a fully fungible digital utility, a fan engagement token provides fans with access and influence over some decisions made by the clubs or sports teams that they support.
The owners of fans tokens have the right to vote on all important club matters such as training ground names and kit designs, among others. A fan token functions as a membership card that provides fans with exclusive rewards, which include VIP access and treatment to some special events. Many football clubs currently partner with some platforms like Socios.com and Chiliz.
Sports and Cryptocurrency Collectibles
Another cryptocurrency spin-off gaining drive in sports is the NFT. The NFTs represent a massive array of unique intangible and tangible items that are stored in digital wallets, ranging from sports cards and digital sneakers to virtual real estate. NFTs aren’t interchangeable. Every NFT represents a certain digital item.
The current market for collectables and trading cards is a multi-billion dollar sector, allowing sports fans to immortalize sports moments in videos, photos and many other mediums. On top of that, NFTs contain distinguishing data that is easily verified and unique on the blockchain network.
The electronic sports industry is growing at high speed. But with many stakeholders, including the likes of publishers, managers, organizers, players and sponsors, it’s far from transparent. The cryptocurrency technology might come to neutralize this.
By providing a decentralized platform with peer-to-peer transactions and all stakeholders under one roof, this sector might massively benefit. Think in terms of secure payments, trust levels, transfer of players and distribution of prize cash, among other things. Cryptocurrency will help the eSports industry thrive.
Despite the explosion of interest in cryptocurrencies, sports clubs and teams should be aware of some of the risks that this technology can bring. While the value of cryptocurrency assets continues to be volatile, their rise provides the opportunity and excitement for the sports and betting world.