Many IT developers and investors see a future in which the metaverse and cryptocurrencies are both integrated into Web3, a decentralized internet governed by people rather than businesses. Though initially quite different, cryptocurrency and the metaverse may come to rely on one another as they develop.
The next generation of the web, Web 3.0, will serve as the platform upon which the metaverse will be built. This would consist of user-controlled money and data economies supported by decentralized applications with blockchain functionality. Nonetheless, it can’t be denied that the two concepts may work well together. Shopping soon became an integral part of both Web 1 and Web 2, and it seems likely that this trend will continue in Web 3 companies. While the ultimate shape of the metaverse remains unknown, it is becoming more clear that it will likely have a major bearing on the future of cryptocurrencies and the social effect they will have.
What Does Blockchain Technology Means For The Future Of The Cryptocurrencies And Metaverse?
First, we’ll talk about blockchain, a crucial piece of tech that underpins both virtual currency and the metaverse itself. Through the usage of a blockchain network, users are able to conduct transactions directly with one another, cutting out traditional intermediaries like banks and IT firms. This has the potential to reduce expenses and shorten processing times, among other advantages.
In the online marketplace, digital equivalents of conventional fiat money are still widely used. The blockchain and digital currencies built on top of it were developed to facilitate electronic commerce.
Some have speculated that metaverses use blockchain technology to allow for permissionless interactions between internet users in their immersive services and 3D virtual worlds.
The Influence Of The Metaverse On Digital Currency
Since Facebook’s redesign, the Metaverse has gained prominence. Most significantly, in the Metaverse, all transactions are conducted digitally, often using bitcoin.
As a result, during Facebook’s rebranding, there was a noticeable increase in the value of cryptocurrencies and other forms of non-fungible tokens (NFTs). To put it simply, nonfungibles are irreplaceable because they are one of a kind. Unlike national currencies, they cannot be exchanged for another of the same value. For instance, on the day after the Meta announcement, the price of the Decentraland token MANA increased by about five times its initial value.
Another thing that matches this category is virtual pets. Axie Infinity, an early leader in the cryptocurrency game industry, also saw a spike in demand for its native tokens around this time.
Since NFTs, cryptocurrencies, and other digital assets are the sole viable means of payment for Metaverse transactions, this fact incentivizes the purchase of these assets. As a result, the Metaverse has helped boost the demand for digital currencies.
Buying Stuff In The Virtual World
The Metaverse extends well beyond the realm of video games. Instead, it’s a world dominated by online shopping. Anyone of any age who considers themselves “a techno-grandparent” is welcome here in this Metaverse.
Media files, pictures, animations, NFTs, programs, and other forms of intellectual property are all part of the Metaverse. The nature of these assets is not very physical. Which suggests they may not exist in corporeal form. Instead, they are uploaded to a cloud storage service, and the user or business is granted full ownership.
The Metaverse may become a marketplace for digital goods like these to add to its many uses. A country’s money or cold hard cash is not accepted here, but else it’s the same. People would use digital tokens like Cryptocurrency to transact goods and services.
Gucci, Adidas, and Nike are just a few of the major companies that have joined the NFT fray. It is possible that in the near future, purchasing an object in the real world will also give you ownership of a corresponding NFT in the Metaverse.
A cryptocurrency exchange, such as Bitcoin Era or eToro, would essentially function as a portable cryptocurrency wallet. Your virtual possessions unique to the Metaverse, such as an avatar, clothes, animations for said avatar, virtual decorations, and weapons, will also be stored in your cryptocurrency wallet. Avatars’ wardrobes, home décor, and other accessories might be bought and sold today as real-world goods.
Conclusion
Finally, businesses will likely join in the fun if the metaverse is a financial resource. Blockchain’s distributed ledger technology has the ability to cut out middlemen in financial transactions, but businesses will still have plenty of ways to make money — maybe even more so than in today’s markets. Large-scale gathering places for individuals to work, enjoy, and interact will be provided by companies like Meta.
