Metaverse: Can There Be a Metaverse Without Cryptocurrencies? Here’s What the Experts Say

New Delhi: Metaverse has become a buzzword among technocrats and crypto fanatics. Metaverses are connected to the 3D virtual world, where people can barely communicate.

However, this is not the complete truth. The term covers a wide range of virtual realities, including tools for working with games and community platforms.

Interestingly, the term “metaverse” was coined in 1992, when American author Neal Stephenson used the word in his 1992 science fiction novel “Snow’ Crash, ”which envisioned a virtual reality-based heir to Internet.

Over the years, the metaverse has evolved and now this virtual theme has become a reality, thanks to a flood of theme applications based on blockchain technology.

However, the bigger question is whether there is a metaverse without cryptocurrency. Market experts have a mixed opinion on this because some believe cryptos have no warrant, while others view them as fuel for the metaverse economy.

In contrast, metaverse and crypto are two concepts that can be very different. A sign can have uses in real and virtual worlds, but the concepts must have a clear synergy with each other.

Hitesh Malviya, founder of IBC Capital, said crypto could be used to power the metaverse economy. “Crypto could be used as a tool on metaverse platforms in the future,” he added.

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

However, BuyUcoin CEO Shivam Thakral said the metaverse and crypto are inseparable because the underlying technology for both is the same and crypto is essential to the management and operation of the metaverse.

Contrary to their opinion, Edul Patel, co-founder and CEO of Mudrex, said the metaverse and cryptocurrencies are rather different concepts that can exist without each other.

“The metaverse can add significant value to the global economy, and that amount can be realized with crypto by using it as a means of payment,” he added.

The basic premise is that metaverse projects require an exchange medium or payment mechanism to purchase digital assets in the digital world, which is often tokenized.

In contrast, crypto-based technologies are building on their effectiveness against cyber attacks such as data breaches, hacks and phishing that are rampant in the digital space.

Currently, the only accepted currency in the metaverse is cryptocurrency. Decentraland, Sandbox, and NFT Worlds are three popular blockchain metaverse projects that are also launching their cryptocurrency utility to leverage their respective ecosystems.

However, the fact cannot be ruled out that the metaverse also accepts fiat currency. However, it is only a hope or a concept for now, but the future may be different for users.

If an investor is willing to plan their journey into the metaverse, they need to identify the potential before investing there, market experts suggest.

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

“Metaverse real estate has a slightly higher barrier to entry for beginners, on the other hand, investors with limited capital can still invest their tokens to be part of growing their ecosystem,” he said. .

The metaverse, too, needs to expand from existing limitations and evolve towards interoperability between itself, with many properties to be added beyond the ground, symbols, avatars, structures.

This has been followed by a lot of research on Metaverse fundamentals, according to Mudrex’s Patel. “Then strategize and experiment based on your research and risk appetite.”

Blockchain and crypto enthusiasts will enter the field through their wallets. However, niche understanding of the theme allows them to expand the portfolio wisely and reduce stakes.

“Investors shouldn’t just want to make money from the metaverse at this point and test it experimentally,” he added. “Metaverse tokens can be a small part of the portfolio depending on risk appetite.”

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