The Metaverse announcement by Facebook, now Rebranded as Meta, was surprising to almost everyone. Having an independent virtual space for future online interaction looked like only something conceivable in sci-fi movies until someone brought it to reality. Now it seems it’s around the corner, and many seem to be loving the idea even though there are still some areas that appear vague.
When cryptocurrency was introduced, it was a highly debated and mysterious concept that took a lot of convincing for people to buy into the idea. As easy as it is now to buy Bitcoin with debit cards, the concept of cryptocurrency was very vague back then. Today, digital currencies are everywhere and widely accepted almost everywhere globally.
This article will help clarify the impact the Metaverse can have on cryptocurrency while gradually breaking down each concept to be easily understood.
Analyzing the Metaverse for a Beginner
Unlike cryptocurrency, the Metaverse is still quite a complex subject, even though many people seem to be interested in knowing what it is and how it functions. Therefore, before we go any further, it is best to explain the Metaverse meaning and how it can impact our lives.
The Metaverse is our possible future virtual world. It is a shared 3D virtual world that can be accessed through virtual reality headsets. However, the idea is far from a dream, as Meta is willing to spend up to $10 billion on the Metaverse project, even if it won’t be applicable in the coming years.
With the Metaverse touted to be the future of the internet and new online relations, it looks prepared to be the place where crypto assets could have limitless adaptations. That is why many have argued that there is a strong link between the Metaverse and cryptocurrency. If and when the idea of a digital world and workspace is being actualized, digital currencies will most likely be the legal tender there.
Metaverse Crypto: Where the Worlds Could Collide
Since the creation of the internet, many digital enthusiasts have dreamed and worked on different ways to bring cyberspace into reality. Before Facebook declared its intention to work on the Metaverse, there have been other attempts to create online virtual worlds in the past few years. If your examples are the Sandbox and Second Life, you may be correct, but sadly, none have maintained the long-term success we would hope for in technology of that magnitude.
At this center of the Metaverse commotion, various companies and establishments have recently turned their focus to blockchain technology, a new member in the flames of investment. Moreover, companies have lined up to invest in its application in other industries because blockchain is the sophisticated technology that runs cryptocurrency and its markets.
With successes already recorded in sectors like education and healthcare, blockchain technology’s impact on Bitcoin may be the tip of the iceberg. However, with the idea that the Metaverse can take blockchain technology to even greater heights, many suggest that a union between the two technologies is inevitable. This digital concept that heralds the creation of an alternate universe where individuals can model their image to whatever they want could provide numerous applications.
As the Metaverse would accommodate acts like gaming with friends, buying products, and other physical activities, the cryptocurrency market could be a financial base via which the Metaverse becomes a reality. Cryptocurrency would make it possible to purchase and sell products, services, and properties within the Metaverse.
The NFT Catalyst
One of the initial points where the Metaverse and cryptocurrency world will collide is through NFTs. Non-Fungible Tokens (NFTs) are forms of digital ownership that permit users to buy virtual goods and services. For example, NFTs are widely popular today in their use in selling various digital art collectibles online.
In the Metaverse, you can use this form of digital ownership to buy a plot of land, a mansion, or even furniture. You would need cryptocurrency to buy the NFT for that particular furniture; then, the acquired non-fungible tokens would act as a digital receipt to prove that you are the sole owner of that property. Of course, this applies to anything that will eventually become usable in the Metaverse.
Ethereum is one of the biggest hosts for NFT marketplaces, so that it could make pivotal contributions to the Metaverse’s success. If an NFT is based on a cryptocurrency’s blockchain, you would have to purchase it using that cryptocurrency. For instance, if it’s on the Ethereum blockchain, you must buy it via an Ethereum-based token, like Ether. Then, as transactions with this token progress, more Ethereum will increase in value.
However, other cryptocurrency options were created primarily for the Metaverse. Examples of these are Decentraland (MANA) and The Sandbox (SAND). These cryptocurrencies can effectively serve as the currency of the Metaverse and can be used, in rare cases, to vote on policies within the Metaverse.
What Does This Mean For Everyone?
As more and more people talk about the potentials of the Metaverse and cryptocurrency, both technologies seem primed to rise in value in the coming years. However, that reason alone doesn’t mean you need to dive in headfirst and invest. Both the Metaverse and cryptocurrency’s use within it are still speculative for now. Therefore, it is not yet guaranteed to succeed over the long term.
Your best bet is to take your time to study how both worlds work. Then, you can document your analysis to reference them subsequently. You can also read experts’ opinions on the subject to gain better knowledge of Metaverse, blockchain, NFTs, and cryptocurrencies. That way, you can be sure you are not investing blindly or impulsively in any Metaverse crypto.
Whether you have a crypto investment, be sure to look at the big picture. There are several other avenues where you can make guaranteed investments in cryptocurrency. This is not to say you shouldn’t anticipate the Metaverse’s growth and plan to invest in it if possible. Instead, it is a call to make the best use of your resources and appropriately plan for the future.