Will Blockchain Technology Unlock the Metaverse’s True Value?
The metaverse is made up of virtual worlds where people can do many things they do in real life. To paraphrase Meta CEO Mark Zuckerberg, it’s an “embodied internet”, where instead of just viewing content “you are in it”. And cryptocurrency will almost certainly become the primary payment method in the metaverse.
UK-based blockchain VC company Outlier Ventures confirmed: “The defining characteristic of a true Metaverse is that it needs its own economy and currencies native to it, where value can be earnt, spent, lent, borrowed or invested interchangeably in both a physical or virtual sense and most importantly without the need for a government.”
As a result, I recommend that you research metaverse and its related technologies before making any key investments.
#What is the metaverse?
Metaverses are inter-connected virtual worlds where people can do things they can’t do in real life, such as work, entertainment, shopping, fitness, and socializing. In a virtual environment, people can start their businesses, buy land, create artwork, and attend concerts. Metaverses create spaces for people to kill time by utilizing virtual reality, augmented reality, social media, and blockchain technology including NFTs. Although the development of the metaverse is still in its infancy, in simple terms it’s easy to see that it will eventually become a virtual world with a virtual economic system.
In the future, users may purchase clothing for their virtual characters rather than clothing for their real-life wardrobe. Rather than buying a piece of art to hang on the wall, it is preferable to purchase digital art to display in a virtual gallery.
#The relationship between cryptocurrency and the metaverse
Cross-platform currency is a critical link in the virtual economic system. The emergence of cryptocurrency is as if it were tailor-made for the virtual world. It enables users to use cryptocurrency in metaverses in similar ways they would use cash in real life. Furthermore, transactions in metaverses are almost instantaneous, thanks to the blockchain technology underlying them, which aims to establish a trust mechanism for both parties to the transaction and ensure the transaction process’s safety.
In explaining the attraction of programmable crypto to metaverse developers expert Matthew Ball explained: “Most important is the fact that developers and users can invest their time and capital with confidence that a blockchain’s policies, incentives, or economics won’t change arbitrarily over time.”
Camilo Echeverri, Co-Founder of MGH DAO mentioned “Seeing all these developments of play-to-earn and metaverses is really motivating because Web3 is going to change everything, especially in the way we interact on the Internet.”
When asked what is metaverse to him. His answer was “The metaverse is a place on the Internet where you can watch your favourite movies, play your favourite games, listen to your favourite artist, and do everything you like with your friends and family.
Consider Decentraland, a decentralized 3D virtual reality platform. Users who want to buy items on the platform must use the platform’s token MANA as the transaction currency. Indeed, metaverse cryptocurrencies such as MANA, Sandbox (SAND), and Enjin (ENJ) have recently received a lot of attention. The popularity of various pet meme coins has also increased due to the popularity of metaverse’s cryptocurrency. Led by Dogecoin, especially in the US, and with celebrity backing from billionaire entrepreneurs Elon Musk and Mark Cuban, it’s not difficult to see the advantages of its payment-friendly features in terms of low fees and infinite supply for online communities and marketplaces.
Borget Sebastien, Co-Founder and COO, The Sandbox was also invited as a speaker at a Twitter Spaces session on metaverse said. “Imagine the metaverse as a digital parallel world where we can experience more social and immersive interactions from wherever we are in the world. We can choose our identity, play, collaborate, enjoy entertainment, and earn revenue. It will be fun and borderless.”
#How to start participating in the metaverse
The metaverse is a concept that is still in its infancy. At the moment, there are many different ideas about how metaverses will look and what role they can play in our lives, both at work and at home. Meta (formerly Facebook) has ambitious plans for its future development as the pioneer of metaverses technology such as VR headsets. The plan calls for the introduction of virtual fitness equipment and space for virtual business meetings. And although VR technology has advanced significantly, there are still numerous technical issues that must be addressed before it reaches mass adoption.
However, we can participate in the metaverse today in a variety of ways as cryptocurrency investors. The simplest way to get started is to buy existing metaverse-related cryptocurrencies. These cryptocurrencies are available from major cryptocurrency exchanges. Simultaneously, you can purchase NFTs or even consider purchasing real estate and artwork in the metaverses world. However, I advise that if you want to join the metaverse, you should do a lot of research. Access to what’s happening in the existing metaverse, such as playing the online game Fortnite, is a good way to comprehend its potential and to start thinking about the expected value of your investments.
Do not join the metaverse based solely on celebrity endorsement and the current media hype, as you might with any other crypto investments. It is critical to devote as much time and effort as possible to understand how they work and which metaverse projects are most likely to survive and prosper in the long run. Similarly, buying NFTs at random simply because of the hype is not a reasonable investment strategy.
Before purchasing NFTs, you should investigate which NFTs are appropriate for your interests, which ones are likely to be profitable, and do the research to ensure a good experience in buying NFTs.
It should be noted that mature blockchain network projects should be chosen for investment as much as possible. Many metaverse projects that use crypto or blockchain technology are built on established ecosystems like Ethereum (ETH) or Solana (SOL), which will therefore benefit investors, and offer a lower-risk investment option. Because even if the more ambitious elements of an always-on metaverse are not realized, Ethereum or Solana will likely continue to prosper.
Anndy Lian, Chairman, BigONE Exchange commented too that “The economy is growing in metaverses. Cryptocurrency is playing a very big part in this whole development. A lot of governments do not have a good way to regulate De-Fi products. If we’re going to add DAO or metaverse to the scenario, it will take them a long time to catch up. We have to exercise self-regulation and constantly communicate with regulators to provide updates on the progress in the space, in order to minimise misconceptions of the crypto world.”
We don’t know how the metaverse will evolve in the future. People have been discussing how to develop it for many years, and the term ‘metaverse’ is decades old, but progress until very recently has been slow on creating these persistent virtual worlds. Although there may be changes this time around, it is critical not to invest based solely on hype.
All cryptocurrency investments are risky, and you should only invest funds that you can afford to lose money. Don’t let the fear of missing out (FOMO) drive your investments. If the metaverse is a worthwhile investment project, it will be worth waiting to invest in once your research is completed. As a result, I remind all investors to choose investment projects with caution and not rush into a decision.