As more i-gaming operators seek to develop products to target the so-called millennial generation, bitcoin is an important component as the digital currency for the connected gaming generation, writes online gaming expert Tim Heath, CEO of Coingaming.io.

Tim Heath, CEO, Coingaming.io

E-sports, skill-based slots and digital betting for ‘millennials’ continue to drive the i-gaming industry. However, one important part of this instant-gratification consumer funnel is the use of bitcoin as the preferred payment method of these digital natives.

The recognition of how important bitcoin is becoming for the connected generation hasn’t gone unnoticed. Only last month Barclays, one of the UK's largest retail and online banks, publicly stated that it is going to allow bitcoin acceptance before the end of the year. If the implementation goes to plan it will mean that Barclays is set to become the first major bank in the UK, US and Europe to accept bitcoin.

Barclays is not the only financial behemoth considering the growing mainstream adoption of bitcoin in the UK. Many firms are looking at the blockchain technology that underpins bitcoin and its application as a digital currency for the connected generation. Swiss bank UBS recently opened a FinTech research lab in Canary Wharf to look at the mainstream usage of blockchain and crypto-currencies.

Following this trend, nations including the UK, US and most of those in western and northern Europe, have arrived at the opinion that bitcoin is a hitherto legal currency. The Commonwealth Bank of Australia, Barclays, BBVA, Credit Suisse, JP Morgan, State Street, Royal Bank of Scotland and UBS are collaboratively working on plans to design a "distributed ledger" technology based on the blockchain that facilitates bitcoin transactions; further demonstrating the growing mainstream acceptance of bitcoin within the traditional fiat-currency based financial world.

Bitcoin is the natural choice for the digitally connected generation, which seeks gratification here and now via the multitude of apps and on-demand services that reside on their smartphone homescreen or on wearable devices. For this connected generation, everything is at the end of their fingers; it is on-demand and almost immediate.

On-demand services are growing. Cisco, the technology giant, has predicted a 66 per cent increase in the on-demand market every year for the next four-to-five years with expectations that there will be two billion smartphone users by the end of 2015. Google has also forecast the on-demand app market to be worth over £30bn to the UK economy by 2025.

If i-gaming operators are to capture a greater share of this mobile digital natives or millennial market, then they need to be thinking about bitcoin as the digital mobile currency of choice.

Bitcoin provides a truly on-demand gaming experience and gratification with transfers from €0.01 or €1,000,000 instantaneously, with zero or low fees – so, no waiting for the “now” generation. Using bitcoin means gaming players don’t have to worry about public holidays or winnings from the weekend taking several days to appear in the players’ fiat bank account. Bitcoin allows a payment from anyone, anywhere within the online gaming ecosystem and is truly a borderless fulfilment.

Bitcoin can be the ‘digital chip’ payment protocol to service this growing consumer market, and if an i-gaming operator’s platform supports bitcoin, it could mean the ability to convince and convert the connected generation, which is only interested with now and on-demand gambling entertainment services.

Tim Heath has more than 10 years of management experience in online gaming and is the CEO of Coingaming.io, a software provider for white-label bitcoin casino and sportsbook solutions.