infoTECH Feature

July 02, 2018

Why investing in eSports could be a great idea


Making money from investments is something that many of us have thought about, but only a few have actually executed that thought. Usually we feel like we’re too late to join in on the train or we simply don’t have the balls required as we’re afraid the investment will result in a loss instead of the profit we’re looking for. But what if we told you there’s a bullet proof investment opportunity which you’re right in time for? We’re of course talking about the eSports industry that we foresee have a great future ahead.

So why should you invest in eSports and how do you do it? There’s a well-written article by eBetFinder that covers the entire subject in detail, but we will give you a nice overview of it. When it comes to the why, the following four points is the key:

It’s still in its early stages
eSports have been around since the 90’s, but didn’t start to flourish until Twitch was released in 2011 and betting companies started offering odds on matches. It is in other words not a new phenomenon, but what’s new about it is that competitive video gaming is becoming recognized as a real sport among the population. However, we’re still in the very early stages of this as the older generation still doesn’t know what eSports actually is and therefore there’s a huge room for the industry to grow, which it constantly is.

There’s a steady growth
In a report released by Newzoo, a market research company specialized in video games and eSports, the revenue of the eSport industry had a 52% growth from 2015 – 2016, 41% from 2016 – 2017 and is expected to grow another 30% this year. There’s already a valuable pattern of growth and what’s extra interesting is what will happen when the industry reaches a point where the majority of people can enjoy it.

A paradigm shift is happening
In contrast to traditional sports that’s been around for hundreds of years (soccer can be traced back as many as 2000!), the first video game was not invented until the 1970’s and it wasn’t until the 90’s that it became somewhat mainstream, although not entirely socially accepted. This means there are still plenty of people who didn’t grow up playing video games or understand the culture of it.

All of this is however changing as these days everyone growing up in a developed country is playing games, which is slowly but steadily resulting in a paradigm shift. This is why we’re still in the early stages and why a steady growth is inevitable. With the new generation being raised by a society where games are not only fully socially accepted, but around us everywhere, more and more are finding an interest in watching professional players competing. The way society is heading, eSports may even replace traditional sports in popularity in the future.

There’s a world-wide audience
Competitive gaming is not only limited to certain areas of the world, but more or less every part of it is in one way or another invested in eSports. You may think that Africa isn’t, but you’d be wrong as although not as involved in the industry as other continents, the popularity is growing with South Africa and Nigeria being in the front.

So how do I invest in eSports?

If we’ve managed to convince you that investing in eSports is a great idea, there’s a lot of different ways that you could get yourself involved, including the following:

- Buying stocks in a company hosting events (with DreamHack and ESL being the major ones)
- Buying stocks in a competitive team organization such as fnatic, Astralis or NatusVincere.
- Creating your own professional team of players (requires passion, time and a huge budget)
- Buying stocks in a betting company focused on eSports (I.E Arcanebet, GGBET, Betway)
- Buying stocks in a company developing eSport games (like Blizzard, Valve or Tencent)

The above is of course only a few of the opportunities that exist and by exploring the industry further and doing your research you will find several other ways to benefit from the inevitable growth that the eSport industry is facing.


 
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