Cryptocurrencies have taken finance a few steps forward by changing how funds are sent and received. This improvement cuts across nearly every sector that collects payments for various reasons.
Paying for entertainment with cryptocurrencies
In the entertainment industry, cryptocurrencies are expanding payment methods, allowing increased access to music, movies, gaming and gambling.
The integration of blockchain technology with entertainment is transforming several entertainment use cases, including the following:
Online Gambling
Many online casinos now allow users to enjoy slots, baccarat, poker or roulette, using digital assets as a payment method. There are several reasons why these establishments are expanding payment support.
One is the speed of payments, which is valuable at a live casino when interacting with a live dealer. Cryptocurrencies like USDT, Bitcoin (BTC), or XRP can be used to make quick payments so that dealers and opponents do not have to wait.
Concert Tickets
Ticketing services are gradually accepting cryptocurrencies as a trusted means of payment.
Using digital assets helps reduce the risk of fraud since all transactions are permanently recorded on the blockchain.
In addition, service fees are reduced because the typical intermediaries that inflate prices are absent.
Online Gaming and eSports
Many in the gaming industry have fully embraced cryptocurrencies. Online gaming services and eSports platforms already accept BTC, ETH, and other tokens as payment.
This is particularly important for eSports because global access is required.
With fiat payments, jurisdictional problems caused by regulatory restrictions may limit adoption and participation from players across the world.
However, cryptocurrency quickly solves this problem because transactions are borderless.
Movies and Cinemas
Quite a few cinemas accept cryptocurrencies for ticket purchases and concessions. In 2021, AMC Theatres announced it would accept payments made in Bitcoin.
The company has since expanded the list of accepted cryptos to include meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
This approach is attractive to younger audiences who are crypto-forward and are seeking more ways to use their digital assets.
Decentralised Streaming
Streaming platforms powered by blockchain technology accept crypto payments from fans and consumers who enjoy music and other media uploaded by hundreds of creators.
These platforms allow artists to earn directly from their works and distribute their content directly to their intended audiences.
Cryptocurrencies also facilitate direct payments between artists and their fans.
Travel and Adventure
Several platforms that curate tours and holidays accept cryptocurrency payments.
Through payment gateway platforms like BitPay, these services help people book hotels, flights, guided tours, and other unique experiences, receiving crypto and immediately converting the funds to cash.
This way, there are no foreign exchange fees and no processing charges to worry about.
Using crypto, travellers, and thrill-seekers can easily book holiday cruises regardless of location.
Barriers to Crypto Adoption in Entertainment
Price Instability: One of the biggest problems is volatility. The prices of decentralised and non-stablecoin assets like CBDCs can swing wildly, significantly impacting consumers and merchants.
For instance, the cost of a movie ticket paid with Bitcoin could constitute profit or loss depending on market conditions, which can change within minutes.
Although payment gateways significantly minimise this risk, crypto’s notorious price fluctuations can be problematic.
Regulatory Problems: The legal landscape surrounding cryptocurrencies is still changing. While some countries support crypto payments and innovation in the blockchain sector, others deter adoption using unclear tax rules or outright bans. This inconsistency can deter entertainment platforms from accepting crypto as they may be worried about compliance risks.
Irreversible Transactions: Unlike fiat payments, crypto transactions are generally irreversible. This means that it is nearly impossible to recover funds mistakenly sent to the wrong address. The irreversible nature of crypto transactions makes some people sceptical of selecting crypto as a payment option where fiat payments exist. Users are advised to double-check wallet addresses before concluding transactions and only use trusted platforms with strong customer support.
Limited Crypto Knowledge: Unfortunately, most people still do not have the level of crypto education required to make a significant impact. According to a Consensys report, 92% of respondents say they have heard of crypto. However, only 8% are familiar with the concept of Web3. Also, a report from the Pew Research Centre states that 63% of Americans do not trust that cryptocurrencies are reliable and safe. Furthermore, only 17% of US adults have ever used, invested in, or traded a digital asset.
Security Risks: The crypto sector is praised for its security, mainly because the average blockchain is immutable. However, the industry has fallen victim to several scams and mishaps and lost millions. According to blockchain research firm TRM Labs, the amount of crypto stolen in hacks crossed $1.38 billion in H1 2024, increasing more than 100% from $657 million recorded in 2023.
Conclusion
The possibilities for crypto payments in the entertainment sector are expanding as popularity increases.
From streaming movies and playing games to online gambling and movie tickets, cryptocurrencies are contributing significantly to how we access entertainment.
The future of crypto payments also looks promising because industry giants like Amazon are already exploring blockchain technology.
In addition, an increase in the popularity of decentralised finance (DeFi) can contribute to funding channels for entertainment platforms and introduce new business models.
However, participants, including users and stakeholders, must be cautious and prioritise regulatory compliance, security measures and user education for safe and seamless adoption.
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