With its popularity rising exponentially, bitcoin has taken over almost all sectors of human engagement. Owing to its benefits over fiat money, this financial tool is now recognized as a viable alternative to paper money. Although only 3% of the world population makes use of cryptocurrencies like bitcoin, they have now begun to make their presence felt in many industries. Especially with many countries like the USA granting legal status to bitcoins and other cryptocurrencies, it has become easier for all sectors to harness their benefits. Therefore, considering the development, popularity, and efficiency of bitcoins, their involvement in the sports industry does not come as a surprise. Bitcoins have revolutionized traditional sports in many ways. From buying tickets and merchandise of your favorite teams to participating in legalized sports betting, bitcoins have the potential of being used in a large number of ways.
How are bitcoins useful in sports?
The sports industry has seen the use of about 1500 cryptocurrencies, out of which bitcoin is the oldest, most popular, and most used. Available on the official site of many trading apps like the bitcoin share, bitcoin has become considerably valuable in traditional sports. The benefits and potential uses of bitcoins are many for this industry. It is opined by many that the use of bitcoins can help in increasing the dividends coming in from sports professionals and serious sports fans. Some of the most pronounced benefits that the sports industry has secured through the use of bitcoins are:
- Bitcoins are used to purchase tickets to sports events. Several events around the world now allow customers to pay for their tickets both through cash and bitcoins. Certain events only accept payments made through bitcoins. Provided that bitcoins are extremely easy to buy and sell, this enables customers to buy their tickets from any place in the world, at any time, just with the help of a smartphone.
- Bitcoins have become popular in the gambling world. Online gambling, especially, has been witnessing extensive use of bitcoins and other cryptocurrencies. Since bitcoins do not have a centralized control system, they provide the customers with increased user autonomy.
- Blockchain technology can prove to be very helpful in storing the personal health records of various players. This would make the information easily available and secure against any potential damage. Information like physical measurements, health reports, and past performance records can be arranged systematically with the help of blockchain technology.
Benefits and challenges of using bitcoins in the sports industry
Bitcoins bring with them benefits as well as challenges for the sports industry. Some benefits of using them in sports are:
- Bitcoins provide increased user autonomy. Because of the lack of a centralized authority, bitcoin transactions are not subject to currency conversions. This makes it easier for people to buy tickets to a sports game or invest in gambling.
- Bitcoins have helped in the popularising of gambling. Although legalized in many countries, most people still are apprehensive about online gambling. The security that bitcoins provide help in building a larger market for gambling activities.
- Blockchain technology is very efficient. Information related to the bitcoins transactions is stored in ledgers across thousands of computers, and the data once saved cannot be tampered with. This makes storing information on blockchains extremely secure and viable.
However, bitcoins do have several limitations. For instance, because of the lack of centralized control, transactions made through bitcoins cannot be traced back to the users easily. This makes it hard for organizers to prohibit the illegal activity. Secondly, bitcoins are extremely volatile and are subject to market changes. Linking it to sports, therefore, puts the industry in a position of vulnerability.
It is the responsibility of organizers to be on their guard while indulging in bitcoin transactions. However, the many benefits that this efficient financial tool can bring with itself cannot be ignored. If handled with efficiency, bitcoins can undoubtedly lead to the betterment of sports.