Bitcoin has existed in the market for quite a while now. However, earlier this year, it has shown exponential growth in its market share. With Bitcoin making its way in every industry, the sports industry has also adopted its ways. Though Bitcoin is at an early stage of its wide acceptance in the industry, it has still provided flexibility in transactions for the players, fans, and majorly the betting crowd.
The Acceptance Factor:
Bitcoin and other cryptocurrencies are also becoming more widely accepted as payment options. Fans have been able to buy tickets and goods using cryptocurrency, while teams have been able to pay players’ wages and transfer fees using cryptocurrency.
Blockchain technology has also benefited sports clubs and organizations by allowing them to establish more stable and trustworthy ticket exchange marketplaces.
How is Bitcoin changing the scenario:
1. Anonymity in betting
Cryptocurrency in the market has shown a significant hike in betting-related transactions.
As the transactions are based on the blockchain mechanism, they are recorded and maintained in a ledger. Bitcoin ensures security in transactions which makes the transactions hard to trace.
2. Cryptocurrency cannot be doped
In case you were largely unaware of the same, the encryption levels of the blockchain mechanism is unhackable so the data storage remains safe from external intrusion.
Sponsors are usually reluctant to invest in a team because the liquidity of money is an important factor. As proper funding and sponsorship is a requirement for any team to sustain, Bitcoin can bring out the ease of transaction and help the situation.
4. Payment in Bitcoins
Although it may appear distant, the notion of paying players with cryptocurrency is not unreasonable. This avenue of exchange might be a smarter decision for the long run.
Furthermore, smart contracts may readily replace paper contracts. It will make certain that the player’s dues are paid on time. It’s a brilliant idea that has the potential to revolutionize the sports business.
5. Merchandise Authentication
When professional teams or players’ uniforms and equipment are sold at auction, fans from all over the world become intrigued with the opportunity to own them. However, determining the genuineness of the auctioned objects is quite complex. And that’s where blockchain technology enters the picture.
When data analysis and artificial intelligence are integrated, an authentication mechanism may be built in which the legitimacy of sports equipment and gears is quantitatively assessed.
6. Transactions reflect in no time
In the case of cash and banks, the betting platform requires a certain amount of time before it is reflected in the betting account. When betting transactions are made with banks or in cash, it takes time for the transactions to appear on the betting platform.
Despite the fact that it may not appear to be a major issue, the time difference between transaction time and data reflection time has caused numerous disputes, including the loss of a bet. If transactions are performed using cryptocurrency on the blockchain, this concern can be simply rectified.
The NFT is another “crypto” spin-off that is growing in popularity in sports. From collectible sports cards to virtual real estate and even digital shoes, NFTs cover a diverse spectrum of different tangible and intangible objects held in digital wallets. An NFT is not replaceable with other NFTs. Each NFT is a one-of-a-kind digital object.
Trading cards and collectibles are a multibillion-dollar business that allows saving the moments and athletic experiences in photographs and other forms of media. NFTs also include unique and easily verifiable differentiating information on the blockchain network. To know more, you can have a look at this article about bitcoin mining!
In the sports business, the development of digital currencies is still up for dispute. It is, in reality, too early to assess its impact and draw conclusions about the validity of the blockchain mechanism.
With the help of major stakeholders in the sports business, however, it may be feasible to integrate Blockchain technology in a way that benefits each and every one. However, Bitcoin has the ability to radically transform the sports business.