Cryptocurrency Has Made Its Way Into The World Of Sports - Does It Have A Positive Effects?
Cryptocurrency has made its way into the world of sports. Football hasn't had the best relationship with technology in the past. David de Gea's move to Real Madrid fell through because the fax machine was too slow. But now, there has been a big change.
This happened in 2021, when David Barral left Real Madrid and became the first player to be signed with Bitcoin as payment. Dux International, a team from Spain, announced the move on Twitter. "He becomes the first person in history to sign in with cryptocurrencies." Thank you to our new sponsor, Criptan, for making it happen.
Even though crypto has been around for a while, this isn't the only club that has tried it. Rimini FC, an Italian Serie C football team that used Quantcoin, AZ to sell 25 percent of their stake. Alkmaar's players were the first in the Netherlands to be paid in Bitcoin, and Watford, a team in the Premier League, have a Bitcoin logo on their shirt, too.
In this section, we're going to talk about Bitcoin.
Bitcoin, like any other currency, is used to buy and sell things. At the start of 2009, it was the first completely virtual money in the world. University of Liverpool business and sports management lecturer David Cockayne says that cryptography is "basically knitting together different encryptions of code." This is how it came to be, he says.
New Bitcoins are made by a process called "mining" on supercomputers with complicated code.
People and businesses around the world use computers to make new bitcoins. They don't print them.
The industry has realized that digital payment systems can help get sponsorships and make more money from fans. I don't know. Through "fan tokens," you can buy things for the fans.
It's easy for fans to download an app and buy tokens that give them access and control over certain things at their favorite club, like how the team's kit is made and what music is played before games.
Alexander Dreyfus, CEO of the platform called "Socios," believes that they are just the start of a new way for fans and clubs to work together.
"We think that fantasy games and digital assets in general are going to be a big part of this disruption that we need to make to make sports and football a little more accessible to the fans." People will become more involved with the club in the next five to 10 years, he says.
With more than 60 clubs, the Socios already have a lot of big names in the game, like Barcelona and Manchester City. Even Lionel Messi joined in on the fun by getting fan tokens as part of his welcome package at Paris Saint-Germain. Some people aren't so sure about the idea.
There are a lot of cryptographic things going on, and it's also very technological. The finance expert, David Gerrard, says it's "we don't know what it is, but it's very cool."
For now, I don't see many of them taking off. The crypto part is just for marketing, and the tokens are for fans to trade or buy things in the shop, and so on.
Another crypto product that is becoming more popular is the NFT, also known as "non-fungible tokens." NFTs are digital assets that are like real-world collectibles, but they use unique data to show who owns them. Any kind of sports event, like Messi's first goal or digital trading cards, could be a good way to remember it. Some might cost a lot, though. One of the first digital NFT cards with Cristiano Ronaldo sold for €353,400 just a few weeks ago.
Crypto may be hard to understand or volatile, but it's here to stay, so don't worry about it. Is the rise of digital currencies going to lead to a future where football fans make decisions about apps, pay for apps, and trade virtual cards?