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    eSports and cryptocurrencies

    Esportsbusiness.net Team

    What is Bitcoin?

    Bitcoin is a global system of "cryptography" and digital payments. It was created as the world’s first digital currency since the system operates without a central repository or a sole administrator. The system works in peer-to-peer philosophy with transactions being conducted directly among interconnected users without intermediaries. The digital coin was launched back in 2009. It was the idea of an unknown developer (or even a group of developers) under the pseudonym of Satoshi Nakamoto.

    Tons of thousands of businesses, millions of buyers

    Since 2015, it is estimated that more than 100,000 online sellers of products and services worldwide have used bitcoin as a payment method. According to this year's Cambridge University survey, about 5 million users use electronically "encrypted wallets", and in their vast majority use bitcoin.

    Although bitcoin remains a controversial trading method, JP Morgan Chase's CEO Jamie Dimon has repeatedly called it "fraud",  more and more businesses are accepting it as a means of payment, and several experts predict that the Bitcoin will overcome even the $ 14,000 mark in 2018.

    If you had invested $10 in 2010

    On 2 June 2010, the first recorded exchange rate to the dollar was 0.06 dollars, which means that if someone had then invested $10 now would be at the disposal of 1.75 million a dollar.

    Big Market despite 'Reactions'

    The controversial method finds "opposing" the big states that "fight back" on the philosophy of crypto smiths: The central Russian bank threatens to close as many Bitcoins sites offer as opposed to other currencies while China has already closed several electronic bureaus.

    For now, however, despite the "hostile" policies, the total value of those who have invested in Bitcoin is over $ 167 billion. The initial problems with cryptocurrency are very much synonymous with those of eSports as both have faced a lot of problems in their inauguration to become forces to be reckoned with.

    Bitcoin Going Big in China

    "One coin for one villa" is a recently popular phrase in the bitcoin circle, describing in a down-to-earth manner of the good expectations and imagination of the domestic speculators in the heart of Bitcoin. Recently, Jermain Li, the first investor in Snapchat, and Pete Smith, CEO, and co-founder of the Blockchain, also invested in the bitcoin cryptocurrency. It is estimated that the price of bitcoin per unit by 2030 is expected to rise to 500,000 U.S. dollars.

    In China, on January 6 this year, after the Central Bank interviewed and stationed in and inspected a number of virtual currency exchange platforms in China, the volume and liquidity of domestic bitcoin transactions were found to be greatly affected. The domestic exchanges also announced the suspension of the provision of liquidity currency. However, bitcoin trading is still booming. Since early 2017, the market price of bitcoin has fluctuated between 6,000 and 8,000 yuan. However, compared with the same period in 2016, bitcoin has become a "fragrant fairy tale."

    Veteran bitcoin players tell IT Times on their own experiences that making big money from bitcoin is not a nonsense, but not everyone can dream of coming true.

    "When the price is low, electricity is not dug back, when mining a month's electricity bill about 2.000.000, and later put the miner sold, not dug." Zhao Dong was the industry's well-known "miner". Known as "East Uncle Between 2013 and 2014, it invested tens of millions of yuan to mine in Erdos, Inner Mongolia. Later, the price of bitcoin plunged. After the bitcoin price experienced a cut to 8,000 yuan to 9,000 yuan, the heavy loss of Zhao Dong made him give up and he continued mining.

    Since the birth of Bitcoin in 2009, it has become a highly anticipated "Internet financial star." The production of bitcoin comes from a special calculation algorithm, in which the total amount of bitcoin is fixed at 21 million. Each coin is "scooped up" by the power of the computer. This process is commonly called "mining ".

     "The amount of bitcoin that has been dug up is about 16 million and only 5 million can be dug up. Now all domestic mining operations are large-scale and the cost of mining is too high." Zhao Dong told IT Times reporter his mine during the peak period, there were nearly 6,000 mine machines. When the price is high, the profits for one month can reach 56 million yuan.

    Bitcoin not consistent

    The senseless value increase in bitcoin has made more and more people get upset for the cryptocurrency.

    One can talk about a full-fledged bitcoin fever. Most people who invest are likely to do that for speculative purposes. But a thought behind the bitcoin, as the mythical pseudonym Satoshi Nakamoto had when he created it in 2009, was that bitcoin would act as a digital currency. It would allow payments over the internet without the involvement of banks or the existing financial system.

    Some companies have also sold their products and have been paid in bitcoin. Steam, a leading platform for digital distribution of computer games, opened the possibility of bitcoin transaction back in spring 2016. Among other things, it would help customers in developing countries without a credit card.

    But now it's over with computer gaming by bitcoin as announced by Steam. On its company blog, it is written that the decision is due to high transaction fees and excessive fluctuations in the bitcoin rate.

    Solution to the Bitcoin problem - Skrilla

    Do you have any idea happens when a rapidly flourishing sport meets the rapidly flourishing finance technology? eSports Cryptocurrency in the answer.

    eSports has been in the mainstream for a while now. Fans and enthusiasts watch their favorite teams competing in multimillion-dollar competitions and lift trophies. The world of eSports consists of blockbuster titles which includes, League of Legends, Dota 2, CSGO and so much more. The world is going digital and eSports might very well be the future of digital income. For example, in 2016 Leagues of Legends Worlds Championships, the crowd attendance was over 60,000 while over 50 million fans watched the event online.  This was just one of many events where such an amazing attendance was recorded in recent times.

    One of the most impressive digital phenomena’s that have taken the world by storm is Cryptocurrencies. A large number of organizations are well aware of their popularity. The common man is finding guides to learn the usage of the cryptocurrency while some nations are even considering them as a future currency. The eSports fans are also getting involved the digital currency because, since the dawn of the modern era, sports and money go hand in hand.  

    Combining Competitive Gaming with Blockchain

    The eSports industry is now well established in the modern world. Now, the big guns are learning about how it will fare for them in future and what possibilities it holds on the horizon. In order to tackle the problem with the consistent rise of Bitcoins, initiatives have been taken in the eSports industry.

    New eSports currencies coming your way

    Bitcoin and Ethereum are what making the cryptocurrency popular among the masses. However, some new currencies are making their way for the betterment of eSports industry. The limits of Blockchain shouldn’t be a problem for the electronic gaming if the things go as planned.

    Some initiatives are being taken to remove the constraints from the Blockchain. One of the initiatives is being taken by Skrilla. It happens to be a renowned betting platform.

    The project was undertaken by two popular gaming companies, Puntaa and GAMURS. While Puntaa is a famous peer-to-peer social betting firm, GAMURS is a platform dedicated to eSports with a monthly user base of more than 3.5 million.

    In order to place bets, buy items and earn in eSports, a new token has been created by Skrilla through the Blockchain technology.

    The new ICO introduced by Skrilla is on the verge of the inauguration. The sales of this new token of eSports industry took place in the first week of November. In order to meet the regulations of ERC20, Skrilla has utilized the Ethereum Blockchain and will be labeled as Skrilla (SKR). The new token will be initially used for participating in contests, placing wagers and for some contests. They are also on their way to establish streaming platforms which will exclusively accept cryptocurrency.

    eSports and Blockchain in the long run

    The popularity of eSports has gown top of the charts in just a matter of few years. It is speculated that the industry should worth over $1.4 billion by 2020, according to SuperData Research.

    So, for such a rapidly growing industry, the security risks should also be taken into account and some initiatives are set to be taken very soon. When there is so much money on the line, gamers, fans, enthusiasts, streamers, stakeholders should be able to trust the digital security.

    Organizations like Skrilla are amongst the few who wants the games and their users feel safe while making a bet or just spectating their favorite game. The partnership of eSports with the cryptocurrency should reduce the security hacks and also remove the involvement of third parties from the trade.

    With the immense risks of security, a passionate platform has emerged and have put up high quality online developing and publishing gaming services to good use to give the lovers of eSports, Play2Live(P2L). It happens to be the first decentralized gaming platform for enthusiasts of eSports.

    The gaming is now more fun and exciting for everybody through the platform of P2L, because of its inauguration of Blockchain technology. They are providing exceptional services to both the fans and streamers with no hidden costs whatsoever. Through their digital monetization, they are giving their users modern day technology at optimal efficiency.

    The fans can catch their favorite streamers broadcasting at exceptional quality. They are also coming up with innovative ways of using these digital tokens, to make a new leap into Blockchain and eSports. Normally streaming platforms have at most 8 or 9 streaming sources; however, this new cryptocurrency platform is offering 15 revenues. So, it doesn’t compromise on services.

    Investing in the Future of eSports

    Education institution and college are also paving the way for eSports in curricular activities. It is speculated that eSports might very well be an event in 2024 Olympics. Whosoever subjects eSports to criticism is always proven wrong. Gone are the days when eSports was thought to be a one-hit wonder.

    With the association of Blockchain, eSports is all set to take the world by storm and companies like Skrilla are set to provide the security for this association to flourish in a long run. These tokens may very well become the only mean of escrow-like transactions in eSports.

    In order to secure the future of eSports and your own finances, it is an exceptional choice to invest in Skrilla’s ICO. Over 10 million SKR tokens have been published, and from 6th to 20th November 60% of those were available for purchases. We can only wait and see what the future holds for this new eSports cryptocurrency.

    Australia has launched the platform and it has received an exceptional number of responses. While in the near future Skrilla is set to launch in the USA.

    Future is bright for Blockchain and eSports

    The progress of eSports can’t be taken for granted, and same can be said for the cryptocurrency. The flourishing industry of eSports is all set to achieve wonders with the emerging Blockchain technology.  Skrilla and Play 2 Live are just the beginning and by the look of things, they are sure to set a benchmark for the future hybrid organizations of eSports and cryptocurrency. The analysts are still concerned about whether this new cryptocurrency will make a mark in eSports business. However, judging from the past timeline of both cryptocurrency and eSports, both have made tremendous progress in a matter of years after facing a lot of criticism in the early days. So, arguably it is a safe bet to support the upcoming hybrid industry of eSports and cryptocurrency.

    Edited by Marian Härtel

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