Technology

Metaverse: can there be a metaverse without cryptocurrencies? Here’s what the experts say

New Delhi: Metaverse has been a buzzword among technocrats and crypto fanatics. Metaverses are connected 3D virtual worlds where people can communicate virtually.

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

Interestingly, the term “metaverse” was coined in 1992 when American writer Neil Stevenson used the word in his 1992 science fiction novel Snowcatastrophe, which explores a virtual reality-based successor to the Internet.

Over the years, the metaverse has evolved and now this virtual theme has become a reality thanks to a flood of themed apps powered by blockchain technology.

However, a more important question is whether a metaverse can exist without cryptocurrencies. Market experts have mixed opinions on this, as some believe that cryptocurrencies have no basis, while others see them as fuel for the economy of the metaverse.

On the contrary, the metaverse and crypto are two concepts that can exist separately. A token can have utility in the real and virtual worlds, but the concepts must have clear synergies with each other.

Hitesh Malviya, founder of IBC Capital, said that cryptocurrency can be used to support the economy in the metaverse. “Cryptocurrency could be used as a utility on Metaverse platforms in the future,” he added.

The Metaverse can be seen as a digital version of the world we live in. Lately, we’ve been seeing widespread use of the Metaverse in everyday life, such as at art exhibitions, new product launches, and even weddings.

However, BuyUcoin CEO Shivam Thakral said that the metaverse and cryptocurrency cannot be separated because the underlying technology is the same for them, and cryptocurrency is an integral part of the governance and operation of the metaverse.

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

“The Metaverse has the potential to make a significant contribution to the global economy, and this value can be realized in cryptocurrency using it as a payment method,” he added.

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

On the contrary, cryptographic technologies have proven effective in combating cyber-attacks such as data breaches, hacks and phishing that are 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 that have also launched their utility cryptocurrency to support their respective ecosystem.

However, the fact that the metaverse also accepts fiat currency cannot be ruled out. However, this is just a hope or a concept at the moment, but the future for users may be different.

If an investor is ready to plan his journey into the metaverse, he must recognize the potential before investing there, market experts say.

Malvia of IBC Capital stated that 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 somewhat high entry threshold for newcomers, on the other hand, investors with limited capital can still invest in their tokens to become part of their growing ecosystem,” he said, he adds.

The Metaverse will also have to move beyond existing limitations and evolve towards interaction with each other, adding more assets beyond land, symbols, avatars and structures.

This is followed by extensive research into the foundations of the Metaverse, according to Mudrex’s Patel. “Then strategize and experiment based on your research and risk appetite.”

Blockchain and crypto enthusiasts are entering the field through their wallets. However, a niche understanding of the topic allows them to expand their portfolio wisely and lower the rate.

“At this point, investors should not just be looking to capitalize on the metaverse and explore it experimentally,” he added. “Metaverse tokens can make up a small portion of a portfolio depending on risk appetite.”

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