I am mining bitcoin and getting a bunch of it every day, so now what? That is the question some of the people probably asked themselves when they got acquainted with bitcoin in its infancy. We know exactly what happened with the finances of those who stuck with it a few years down the line. However, we tend to focus too much on that side of the cryptocurrency revolution while we gloss over a more fundamental change in the way economic ecosystems will emerge in the 21st century. It took years for the earliest bitcoin adopters to be able to spend their coins on a variety of products and services. Once bitcoin gained wider acceptance, the amount of goods and services that were available to bitcoin users, including those specially designed or engineered for bitcoin users, expanded tremendously. The same can happen now with niche coins such as eSports’ ERT.
The Kind of Tokens You Hold, Represent the Kind of Consumer You Are!
Although bitcoin is still the most dominant coin, a plethora of niche coins have emerged in the market, creating sub-economies within the cryptocurrency ecosystem. eSports’ ERT is a great example of how it is possible to develop such a niche coin that can become the pillar of an emerging industry. The advantage now is that after the advent of the bitcoin economy, it will take ERT a fraction of the time to develop an economy around it.
This is due to the fact that it was designed with a specific set of goals in mind, and it plays a specific role within cryptocurrency markets. In a sense, any ERT holder, will automatically be identified with the gaming industry, pushing the notion that the tokens you hold say a lot about what kind of consumer you are. This will trigger the next stage of evolution within the cryptocurrency sphere.
The Relevance of Consumer Identity and Cryptocurrency
This evolution in consumer identity will generate economic efficiencies. Lower transaction times and costs were the kind of efficiencies that bitcoin brought to the market. With niche coins and custom tokens that can become one of the pillars of an industry such as eSports, it will be possible to achieve interesting economies of scale and an unprecedented level of integration between different actors within the industry.
This will create a whole new set of efficiencies. If a token such as the ERT allows specific customers that are identified with the gaming industry, to get better deals and bespoke products and services, then the economy will enter a whole new era by going deeper down the cryptocurrency rabbit hole.
Imagine the following:
- Gamers start buying gaming related products with ERT tokens, such as gaming PCs, or perhaps special mice and keyboards.
- The producer of these goods will have an incentive to market and retail within the eSports platform, which will allow them to spend less on marketing and distribution efforts through other platforms.
- Buyers will become a consumer cluster, which will allow companies to sell at lower prices while keeping their margins higher.
- This will jump start a small economy centered around the gaming industry, with the ERT and eSports playing a central role.
Precise Economies and eSports
This is not at all different from the economy that bitcoin created. New service providers, and innovative companies producing highly specialized goods and services for the bitcoin economy sprung eventually. Service providers such as cryptocurrency exchanges, wallets, hardware wallets and even artists, owe their livelihood to the bitcoin economy. The ERT token and eSports can do the same for gamers and for the gaming industry, while it gives consumers advantages that they wouldn’t have had otherwise.
Once gamers acquire ERT tokens and the gaming economy starts developing around this new niche coin, just as other economies develop around other niche coins, the cryptocurrency ecosystem will advance further into the realm of precise economies. Within these, a myriad of new services will develop, mounted on platforms such as eSports. The shift will be evident in consumer behavior, because cryptocurrency users will no longer ask themselves what they can do with this new coin. They will start asking which coin will be the best to have to acquire the products and services they are looking for.
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