At Elite Mining Inc, we’re creating a series of articles about everything crypto. As part of our crypto education series, we’ll take a look at the metaverse today.
See our first educational article on DeFi here.
Everyone seems to be talking about the metaverse, especially following the news of major companies journeying into this new space. As you may know, Facebook rebranded to Meta, Google is making its way to the metaverse with a new set of AR glasses, and Microsoft made a massive acquisition of Activision Blizzard as a way to enter this new market. .
But the metaverse is not reducible to one company — no matter how big Big Tech may be.
The rise of the metaverse is undeniable. Look at the Google Trends chart over time. In early 2021, the term had the lowest possible rating; by November 2021, ‘metaverse’ had the highest possible Google Trends rating.
Even traditional banks believe in the metaverse. JPMorgan thinks the metaverse is a $1 trillion dollar yearly opportunity.
In this article, we’ll dive deeper into what the metaverse is and discuss its potential. This way, you have all the information you need to explore this new virtual world.
What Is the Metaverse?
Put on a headset and journey into the metaverse (source).
The metaverse is a vast network of 3D virtual worlds that are focused on building real-time social networks. It is also described as sort of a superimposed and persistent virtual and/or augmented reality.
In many senses, the metaverse encompasses all things, from work and play education and travel. It’s like another world, in virtual form.
You don’t have to wait to see what the metaverse is all about either. The metaverse is accessible by various contemporary technologies, from smartphones to VR headsets. Some top projects in the space include Sandbox and Decentraland.
As always, as with all things technologically advanced, there are concerns about the impact on the society this technology could have. In the same way, there are concerns that the metaverse is going to change genuine human relations for the worse.
Understand that the metaverse is not meant to replace real social relations between humans, just like that’s not the case with phone or video calls. The metaverse is meant to virtualize and augment the social experience. In this sense, it opens up a whole new world of possibilities:
There are many implementations of the metaverse already, and it could be said that the first metaverse was Second Life, which was launched in 2003. Obviously, if we think of the metaverse in very broad terms, then any massive multiplayer online role playing game (MMORPG) could be classified as an implementation of the metaverse since they’re virtual/digital and social.
You may also find it interesting that Barbados opened an embassy in the metaverse. No longer will people have to make the trip to the physical embassy to process paperwork. They can do so at the metaverse embassy.
The opening of a metaverse embassy by Barbados points to a key reason why the metaverse is grabbing so much attention now. The metaverse is beginning to blend with the real world, especially when it comes to economics. Proposed implementations of this new tech include improving work productivity, interactive learning environments, e-commerce, real estate, fashion and more.
How the Metaverse Economy Functions
NFTs will tie together the metaverse economy (source).
By its very nature, the metaverse will have its own internal economy. This economy could be powered by tokens and NFTs, or fiat currency. Since the whole thing is digital, it’s necessary to ensure that the assets purchased inside the metaverse are truly owned by those who purchased them. There’s arguably no better way to do that than with NFTs, which have publicly accessible proof of ownership.
This is why NFTs may pin together metaverse economies. NFTs, or non-fungible tokens, are created and exist on the blockchain. Since they’re created, or minted on the blockchain, they cannot be changed or manipulated. This requires an unimaginable amount of computational power for proof-of-work blockchains and a ton of capital for reputable proof-of-stake blockchains.
For example, if you want to purchase real estate in the metaverse, it might be in the form of an NFT. If you want to purchase a weapon in a metaverse game, it may be in the form of an NFT. For e-commerce and digital merchandise, NFTs could also function as tamper-proof receipts.
Integrating NFTs and crypto wallets into the metaverse unlocks even more financial opportunities for those that join the metaverse. NFT sales hit $27 billion in 2021, up from a mere $400 million at the start of 2021. That’s a 67.5x increase in one year!
When you factor that NFTs could be the economic lifeblood of the metaverse, no wonder that there are predictions that the metaverse will be worth around $830 billion annually in 2028, and trillions per year by the 2030s.
Is This All Just a Fad?
Metaverse: Fad or game-changer? (source)
As you know, we specialize in Bitcoin mining at EMI. This article is written for educational purposes only, and we’re not going to make predictions about the metaverse.
But we do think the rise of the metaverse is notable.
It could all be a fad. In fact, the creator of Sony Playstation, Ken Kutaragi, believes the metaverse is pointless. Five years from now, the metaverse could fall out of mainstream favor and simply become a niche market.
However, the amount of talent flocking to build the metaverse, along with the rise of play-to-earn gaming, will ensure that development will continue and there will be a strong user base. That’s reason enough alone to think that the metaverse could remain relevant.
Plus, given all the eye-popping projections, the metaverse is probably worth paying attention to over the short term. If you’re interested in crypto and new technologies, the metaverse is at least worth exploring.
Sure, it could all be a fad. But if it turns out to be the next big thing, then you will want to have learned about it sooner, rather than later.
*This article is for informational purposes only, and should not be considered financial advice. Understand that rewards vary based on network, overall participation, and other factors. Do your research and consult with a financial advisor before deciding to provide liquidity, stake or farm tokens.