Understanding the metaverse and its connection to cryptocurrency
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The metaverse is growing rapidly, both in terms of cultural awareness and in financial terms, accelerated by Facebook’s Meta name change last month. As the concept is slowly starting to become more mainstream, several large companies are embracing it and some analysts are calling it “the next big investing theme.”
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Igor Tasic, founder of metaverse consultancy firm Meta Ventures, says the metaverse goes beyond VR / AR and technology itself and has the potential to be the ultimate equalizer in the first half of the game. 21st century by creating a truly global place for people to be included, integrating their physical and digital existence into an authentic hybrid experience.
âWe are living in a moment of transition in the metaverse. I think even the way we refer to ‘it’ will evolve, âTasic told GOBankingRates.
âAs in the past, we called the Internet the ‘Web’, ‘Infoway’ and now ‘the cloud’. It seems to be more of a natural next stage of the Internet where the experiential aspect will take place, âhe added.
In a note to investors earlier this week, investment bank Morgan Stanley said the metaverse – a concept that includes building an alternate universe where individuals can mold their image to who they want to be and perform real tasks such as buying things, playing with friends and other activities – “can fundamentally change the way we socialize with others,” according to Bitcoin.com.
But what is the connection between the metaverse and crypto and how does crypto play a role in it?
Sina Kian, vice president of strategy at Aleo, a blockchain platform for fully private applications, told GOBankingRates that crypto is a fundamental part of the metaverse because it enables ownership of digital assets, and ownership will create incentives to invest.
Kian added, however, that one of the biggest threats to the Metaverse is the prospect of being captured by an oligopoly, thus recreating the threat of monopolies in the digital world.
âThe most important thing that crypto offers is a potential alternative to this world, in which ownership is more decentralized,â Kian said.
Phillippe Bekhazi, co-founder and CEO of XBTO Group, a global cryptofinance firm, echoed the sentiment, telling GOBankingRates that crypto is poised to play an extremely important role in the metaverse.
âObviously, there are emerging technologies, such as NFTs and social tokens, that could be used for everything from games and even making money from incentives to hosting virtual concerts for influencers and their fans. “said Bekhazi.
“What I think is underestimated is the role that major cryptocurrencies could play. Digital currencies are ready to be used as a payment system between various parties in a digital metaverse-like world,” he said. he continued.
âMoreover, it is not impossible that in a future metaverse, even crypto traders could trade Bitcoin and other crypto assets on an integrated VR / AR system within the metaverse. In such a scenario, they could trade “in person”, in the form of digital avatars, on the price they would like to trade with any crypto asset. The possibilities could be endless and we are delighted to see what results, âconcluded Bekhazi.
Other experts explain that the metaverse isn’t all about AR / VR avatars and cartoons. It can be any form of online engagement, from a Zoom call to comments on social posts from your favorite creators, as well as anything that gives you presence, engagement and identity in a digital space can. be a metaverseer, according to Chris Fortier, vice president of Product at Rally, a blockchain ecosystem that helps creators create their own social tokens.
âWith that in mind, crypto has an important role to play in any metaverse,â Fortier told GOBankingRates. âCrypto allows radical ownership of ‘tokens’, but ‘tokens’ are more than money. “
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âCome together, for example, empower creators and communities to dedicate their time and reward their participation in our digital metavers (both today’s web and the web3). It could mean amplifying a tweet, completing a t-shirt order for a fan, or introducing crypto to a new member of the community. Web3 communities now have the tools to honor and reward this digital technology, âhe added.
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