Changing technology does not usually come as a surprise. To name just a few, the internet, the smartphone, and the cloud were all introduced to the world before their appearance in science fiction.
With the “next big thing” of the digital age just around the corner, everyday life could soon shift significantly. We call it “the metaverse.”
What is the Metaverse?
Virtual worlds, or metaverses, are places where people can do many of the same things they do in their real lives. There will be opportunities to work, shop, exercise, and socialize. All of this can be done within a virtual world — setting up businesses, buying land, and creating art.
Metaverses combine virtual reality, augmented reality, social media, and blockchain technology to create virtual locations where people want to hang out. While many are still in their infancy, these virtual worlds have virtual economies. You might be able to purchase clothes for your avatar instead of buying clothes for your closet in the future.
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Why the Metaverse Matters
Metaverses may be unable to accomplish the epic vision many have for them, but they could fundamentally alter the way we interact with digital worlds. Creators, gamers, and artists could benefit from a collective virtual experience in the same way non-fungible tokens (NFTs) have.
It could not just reshape the creator economy but invent it from scratch. Metaverse is a virtual world that could lead to a trillion-dollar industry. Entertainment, commerce, and even work are some reasons people visit. There is no mention of the metaverse as a web continuation but rather as a successor. Decentralized applications and blockchains are used to build it.
Entrepreneur and essayist Matthew Ball believes that the metaverse will become one of the critical components of all digital experiences and the following excellent labor platform. A new generation of companies will be created due to this, similar to how the internet grew in popularity. It could kill off incumbent industry leaders in an intriguing twist, as digital platforms did in the past.
What does crypto have to do with the Metaverse?
A fundamental demand will be permissionless identity, high-speed exchanges, and financial services. Hundreds of millions, if not billions, will need to access the data. Cryptocurrency technology holds the key to solving these problems. Decentraland and The Sandbox have created virtual worlds that integrate cryptocurrencies so gamers can build and monetize structures such as virtual casinos and theme parks. On exchanges like Coinbase, you can purchase the MANA currency used in Decentraland. Decentraland even has casinos that accept MANA, with dealers paid in MANA for showing up at work.
Moreover, NFTs are poised to play a foundational role in the metaverse, allowing users to own everything they acquire in-game, including their avatars, virtual items, and virtual land. One of the most significant NFT sales of a 259-parcel virtual estate in Decentraland occurred recently for more than $900,000.The eventual possibility of buying and selling virtual goods from different games and universes will be possible via interoperable marketplaces.
Someone might be able to sell their Fortnite skins with the funds they obtain from selling their virtual plot of land on Decentraland. The use of cryptocurrency could become the sole legal tender for all virtual objects and intangibles in the metaverse.
It is truly incredible how much money players are spending on digital assets. The Sandbox Co-Founder and CEO Arthur Madrid asserted that hundreds of thousands of dollars were spent on digital assets. “I think it will add a new layer to the existing digital economy to turn those assets into NFTs, to create an NFT economy.”Despite not being able to predict how the metaverse will look or when its final form will arrive, cryptocurrencies will undoubtedly have a significant role in its growth.
The development of technologies such as virtual reality and how industry leaders like Facebook are getting involved will influence the changing nature of the metaverse as much as advancements in blockchain technology and cryptocurrencies.
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Are you interested in getting involved? How can you get started?
Metaverses are still a relatively new idea. There are certainly a lot of different ideas about how digital spaces will develop and what kinds of roles they can play in the future. In addition to creating virtual gym equipment and virtual business meetings, Meta (Facebook) has grand plans.
Despite the advancements in virtual reality technology, much more work remains. Virtual worlds are a great way for crypto investors to get involved. There are several ways to obtain metaverse crypto tokens; the most obvious is to purchase them directly from exchanges. In addition, you can buy NFTs or even consider investing in real estate in a particular world.
You will need to conduct extensive research if you decide to pursue this path. Get a sense of what a metaverse is like by visiting an existing one. Decentraland doesn’t require you to purchase any virtual reality equipment or to pay any MANA to see as a guest. Create an avatar, log in, and start playing.
You shouldn’t just invest in something because Facebook or another big company or celebrity does it. It is essential to understand how these worlds work and which one is most likely to endure. In the same vein, buying an NFT at random does not make sense. In order to determine what NFTs would be profitable for you, choose which ones you think would suit your interests and investigate how the NFT market works.
In addition, many of these crypto-based metaverses are built on underlying blockchain models like Ethereum (ETH) or Solana (SOL), which may make them a less risky investment option since they are not limited to one sector or one virtual world. Ethereum and Solana will probably persist even if the metaverse does not materialize.
You might consider owning stocks in a metaverse-related company as an alternative to buying crypto. Crypto is one avenue to participate, but it isn’t the only one.