Sports and Crypto: Is There a Connection?

The sports industry is probably the last place you’d expect cryptocurrency to thrive. However, it would seem crypto and sports have found common ground. However, it becomes more evident that crypto has some significant value to fans, players, and sports owners by the day.

Today, we have players who accept payments in cryptocurrencies and others who invest in many of the thriving digital currencies in the cryptocurrency market. However, what relationship does crypto have with sports beyond getting paid or investing in crypto, and how can one transform the other?

Here, we examine the connection between sports and cryptocurrency, why crypto has become popular in sports, and how it can benefit the sports industry.

Connection between Crypto and Sports Players

We all know there is a lot of money in sports; sports players make a lot of money through sponsorships and huge contracts. We also know how lavishly sports players spend their money. This is why many of them go broke soon after they retire. More so, agents and financial advisors use them to make money, leaving them with little or nothing after a while.

Interestingly, some players understand how the cryptocurrency market operates and know there’s a lot to benefit from. As such, they’ve included cryptocurrency in their many investment portfolios and we have those who buy BNB and other cryptos. We also have teams that invest in digital currencies and others working on setting up their team tokens.

Potential Benefits of Cryptocurrency in Sports

Sports enthusiasts stand to gain a lot, financially and otherwise, from cryptocurrency. Below are some potential benefits of cryptocurrency in sports:

  • Thanks to the decentralization of cryptocurrencies like Bitcoin, sports enthusiasts can cut through intermediaries and control their money.
  • Apart from putting them in total control of their money, cryptocurrency offers investment opportunities for sportsmen and women. Investing in cryptocurrency is one way for these people to secure their future beyond the sports industry.
  • Cryptocurrency offers a way for athletes to secure their financial information and prevent financial crimes such as identity theft.

Use Cases of Crypto in Sports

Cryptocurrency is used in sports in many ways, and some of the common use cases of crypto in sports include:

  • Digital Trading Cards and Collectibles

These are powered by NFT technology; they are unique and available in limited quantities across the cryptocurrency market. Collectibles can be created with this technology and verified with secure blockchain technology. They are a perfect tool for designing digital trading cards, in-game assets, and game memorabilia for fans to trade.

  • Fan Tokens

Fan tokens are popular because they can create additional streams of income for teams while increasing engagement. These can be purchased using fiat currencies like pounds, euros, and dollars and exchanged for collectibles, among other things. With fan tokens, individuals can support their favorite teams and earn some cash through cryptocurrency investing.

  • Ticketing Systems

Clubs’ blockchain-based ticketing system is another use case of crypto in sports. Crypto has provided a secure way to purchase, store, and trade tickets between events and owners. This provides a much more efficient experience because fans who can’t attend an event can switch their ticket without forfeiting their money or paying penalty fees.

How Crypto Has Helped Sports Clubs

More and more professional teams are adopting Bitcoin as a method of payment. The decentralized nature of crypto makes buying tickets safe, fast, and secure. 

Cryptocurrency companies support sports clubs and teams. For example, the Premier League sides Arsenal, Crystal Palace, Newcastle United, and Southampton are supported by eToro. Moreover, Bitcoin sports betting and price helps increase profits and consequently provides a better experience for fans and athletes.

Experts have it that more teams will get the sport of crypto-based platforms in the future, which will widen the acceptance of digital currencies in the sports industry.

Blockchain Technology in Sports, Sponsorships, and Partnerships

Sports teams are now going into partnerships with cryptocurrency exchange platforms. For example, Arsenal made CashBet Coin their official and exclusive Blockchain partner. Also, BitPay signed a sponsorship deal with ESPN events back in 2014.

In 2018, Gibraltar United FC partnered with Quantocoin and started paying players part of the salary in cryptocurrency. It is believed that they do this to gain more traction and brand recognition.

Blockchain technology has made purchasing tickets safe, easy, and effective for fans. Why purchase tickets with fiat currency when you can buy them with Bitcoin? Blockchain provides a more secure and transparent way of selling and buying tickets for sports events. Fees and salaries of players are also paid with blockchain technology.

In conclusion, with the increasing adoption and rise of cryptocurrency investing, sports teams stand to gain a lot of benefits from incorporating it into their systems. Nevertheless, with the volatility of Bitcoin prices, sports teams should be cautious with investing in crypto assets.

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