Pros and Cons of Crypto in the Sports World

Pros and Cons of Crypto in the Sports World

Culture

Pros and Cons of Crypto in the Sports World

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Cryptocurrency is here and there is nothing stopping it from growing. But, while we are certain that it will at some point take over sports as well as everything else, there is a question of what we can expect from Crypto in the sports world.

As always, there are pros and cons. Those who like the idea point towards the benefits in financing and funding, as well as selling merchandise. Those against it fear the negative effects it could have on any sport, including corruption and underhanded deals.

Generally, there are three points where it is important to investigate what might the impact of crypto be:

  1. Players using crypto
  2. Clubs using crypto
  3. Fans using crypto

And the last one is probably the most important. If there is a rise to a large secondary market, especially in the form of the black market, clubs and investors might try to capitalize and adapt to it. In the end, fans are where the money is.

But, if the issue is approached calmly it will be possible to reap all of the benefits without falling into the pitfalls.

In the end, if something is easier it can always be just better. And if we are not hasty as fans and researchers we could find the future of sports even more enjoyable, regardless of the discipline.

Feb 10, 2021; Tampa Bay, FL, USA; Tampa Bay Buccaneers quarterback Tom Brady holds the Vince Lombardi Trophy during a boat parade to celebrate victory in Super Bowl LV against the Kansas City Chiefs. Mandatory Credit: Kim Klement-USA TODAY Sports

Players Buying In

It is practically impossible to ban players from owning and using crypto. Even now there is a list of players that keep Bitcoin wallets, and that list will only grow over time. Banning it might even be considered an infringement on their civil rights.

But, this can become an issue if corruption is found and there are offers for players to be paid off anonymously. This can be an issue both for teams, other players, fans, as well as the tax collector.

Pros

Aside from the regular benefits that any person would have when using crypto, athletes have the advantage of securing a crowd-funding line for their expenses. This can persuade players to maybe stay in teams that don’t have a big budget but have a big fan-base.

It might also be a way for those playing college ball to finance their careers through the fans and not the predatory arrangements with managers. Would the NCAA accept this now is unknown, but it can be a great way to remove some issues from many games.

Cons

Being dependent on the will of the people is a fickle thing and while using crypto would decentralize the power in sports, those with more money would still hold more of it.

It is possible that unsupervised access by players to crypto wallets might breed corruption and could force them to play only for the fans and not for the team.

Sports Betting in Crypto

This practice already exists, and while it is seen as an overall good thing, there are some downsides to be considered. Primarily, sports betting with crypto needs to be done through legitimate channels.

There is a full list of trustworthy operators found through platforms like SmashingTip that allow betting with crypto like BitCoin and that have all of the necessary licenses.

Pros

Not only is betting with crypto easy and can assure added anonymity, but it can also be a way to hedge two bets at the same time.

Namely, by betting on sports with crypto you can bet on both the result of the game and the future price of crypto. This does give an extra thrill to the game.

Cons

There are a number of doggy websites online that pretend as if they are accepting crypto, but the site alone is fake. Once you connect your hot wallet to the service you will not only lose all of the money you have sent but probably even compromise your wallet altogether.

Jan 20, 2021; Anaheim, California, USA; Minnesota Wild defenseman Carson Soucy (21) and Anaheim Ducks left wing Max Comtois (53) battle for the puck during the second period at Honda Center. Mandatory Credit: Kelvin Kuo-USA TODAY Sports

Clubs Owning BitCoin

Sports clubs buying into crypto will probably be the last step in the development of digital currency. There is little chance that such a move would be acceptable to shareholders and other stakeholders now when the price of big crypto such as Bitcoin is so volatile.

But, once it happens, it will be the largest impact on the game imaginable.

Pros 

By using crypto, teams will be able to sell their products, as well as a variety of rights and services all over the world on a standardized currency. This might even help small teams that gain larger recognition of exploding in both popularity and possibility.

Cons

We already know that clubs are hotbeds of corruption all over the world in every major sport. Making payments anonymous will only widen the possibilities for things like money laundering and tax evasion.

With greater diligence by the authorities, this can be avoided, but unless some parameters are set in advance we might see all of the negative effects before someone decides to do anything about it.

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