metaverse: Can there be a metaverse without cryptocurrencies? Here’s what experts say

Synopsis

Over the years, the metaverse has evolved and now this virtual theme is turned into a reality, thanks to a flood of themed applications based on the blockchain technology. However, the biggest question is can there be a metaverse without cryptocurrency. Market experts have a mixed opinion over it as some believe the cryptos have no mandate, whereas others see it as fuel for the metaverse economy.

Over the years, the metaverse has evolved and now this virtual theme is turned into a reality, thanks to a flood of themed applications based on the blockchain technology.New Delhi: Metaverse has been a buzzing word among technocrats and crypto fanatics. Metaverse are connected 3D virtual worlds, where humans can communicate virtually.

However, it is not the complete reality. The term includes a wide range of virtual realities, including workplace tools to games and community platforms.

Interestingly, the term ‘metaverse’ was coined way back in 1992, when the US-based author Neal Stephenson used this word in his 1992 science-fiction novel ‘Snow ‘Crash,’ which envisions a virtual reality-based successor to the internet.
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Over the years, the metaverse has evolved and now this virtual theme is turned into a reality, thanks to a flood of themed applications based on the blockchain technology.

However, the biggest question is can there be a metaverse without cryptocurrency. Market experts have a mixed opinion over it as some believe the cryptos have no mandate, whereas others see it as fuel for the metaverse economy.

On the contrary, metaverse and crypto are two concepts which may exist separately. A token may have utility in both real and virtual worlds, but the concepts need to have a clear synergy with each other.

Hitesh Malviya, Founder, IBC Capital said that crypto can be used to fuel economy inside metaverse. “Crypto could be used as a utility in metaverse platforms in future,” he added.

The metaverse can be considered as the digital version of the world we live in. Recently, we have seen a wide application of metaverse in daily life activities such as art exhibitions, product launches, and even weddings.

However, Shivam Thakral, CEO of BuyUcoin, said that the metaverse and crypto cannot be separated as the underlying tech for both are the same and crypto is an integral part of metaverse governance and functioning.

Contrary to their opinion, Edul Patel, Co-Founder and CEO, Mudrex said that metaverse and cryptocurrencies are entirely different concepts that can exist without each other.

“Metaverse can add significant value to the global economy, and that value could be realised in crypto using it as a mode of payment,” he added.

The basic principle is that metaverse projects need a medium of exchange or a payment mechanism to buy the digital assets in the digital world, which are usually tokenised.

On the contrary technologies based on cryptography have established their effectiveness in combating cyber-attacks such as data breaches, hacks and phishing, which are highly prevalent in the digital space.

So far, the only currency accepted in the metaverse is cryptocurrency. Decentraland, Sandbox and NFT Worlds are three popular blockchain metaverse projects which also launched their utility cryptocurrency to fuel their respective ecosystem

However, the fact can not be ruled out that the metaverse may accept fiat currency as well. However, this is merely a hope or a concept as of now, but the future may be different for the users.

If an investor is willing to plan his journey in the metaverse, one must acknowledge the potential before investing in it, suggest the market experts.

Malviya from IBC Capital said that investing in the metaverse real estate, and investing in a utility token of metaverse are two separate things and investors need to understand the difference between the two.

“Metaverse real estate is having a bit of a high entry barrier for beginners, on the other side investors with limited capital can always invest in their tokens to be a part of their ecosystem growth”, he added.

Metaverse, too, will have to expand from the existing limitations and move towards the interoperability among the same, with more assets to be added beyond the land, symbols, avatars, structures

This is followed by a thorough research over the fundamentals of the metaverse, said Patel from Mudrex. “Then strategise and experiment depending on your research and risk appetite.”

Blockchain and crypto enthusiasts are entering the domain through their portfolios. Though, the niche understanding of the theme permits them to expand the portfolio wisely and diminish the gamble.

“Investors should not just aim at making money from the metaverse at this stage and explore it from an experimentation point of view,” he added. “Metaverse tokens can be a small part of the portfolio depending on one’s risk appetite.”
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Updated: 05/06/2022 — 10:00