With Bitcoin rapidly approaching its 18th birthday, the expansion and establishment of this and the greater crypto market is unlike anything finance has ever seen.
From what began as 10,000 Bitcoins purchasing a single pizza, the price peaked at more than 100,000 USD for a single unit, far outpacing what most early adopters could predict.
Despite this proven potential, crypto growth still faces ongoing challenges. Most specifically, the waiting and technical aspects of crypto can be overwhelming for some, acting as a barrier to entry into this form of trading. Gamification could serve as a solution to this problem, but how might it best be implemented?
Speed and Technology
Before looking at gamification’s effects directly, it’s important to fully understand the issues that can hold crypto back. The first is speed, which, while not a factor for all forms of crypto, can be problematic with Bitcoin transfers.
Unlike other forms of fiat currency, many cryptocurrencies are limited by an overall set number of simultaneous total system transfers.
When too many transfers occur, those over the limit enter a waiting area called a mempool. Average transfer times sit at around 10 minutes, but can vary considerably.
The second issue ties more into the technological aspects of crypto. While every kind of financial trading can be complicated, traditional currencies are also far longer established, more often taught, and have long-lasting backing infrastructure.
Even though crypto uses a proven tech, it and its systems are still in relative infancy. Getting started requires considerable individual research about how the systems involved work before many potential traders feel comfortable. For older traders, or those not computer savvy, the entire process can be intimidating.
The Gamification Approach
Gamification, or the introduction of gaming elements into non-gaming systems, has a proven track record in both drawing new users in and maintaining engagement for existing users. The idea is that, over time, a user builds an ever-stronger relationship with a brand thanks to the rewards they receive.
The use of a gamification platform is also already established in the financial sphere. Specially developed software takes users on journeys, adding interactive elements to what would traditionally be a less-engaging and more strictly mechanical system.
These newer platforms build loyalty, activate more customers, encourage return trips, and just as importantly, can be customized in the pursuit of specific goals.
It’s in this customization that gamification holds potential in overcoming or at least mitigating the two most common cryptocurrency problems.
With gamification, the journeys users are taken on could be set up to guide new users to greater familiarity and comfort with crypto.
Each step could teach users more about different parts of the system, how they work, and how they fit together in the big picture. This approach could therefore attract and retain more unfamiliar users than traditional methods.
Similarly, gamification could also help keep users engaged while they wait for transfers to complete, mitigating the transfer speed issue. It could be possible, for example, to run a special interactive game that’s only available during the transfer process.
Paired with the right rewards, the transfer period could be turned into an element that users enjoy, rather than one they wish didn’t exist. Of course, the exact form of implementation would depend on the trading business and its goals, but the theoretical pathways would remain the same.
Gamification is not a necessity for any business, but it does represent a direction in which many industries are heading.
In a time of increasing reliance on smartphones, online services, and personalization, gamification offers numerous advantages, and many of these could be customized to fit the crypto space.
There are real opportunities here; it’s just a matter of a few pioneering developers to help set the tone going forward.