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. Metavers are connected virtual 3D worlds where people can communicate virtually.

However, this is not the full reality. The term encompasses a wide range of virtual realities, including gaming tools 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 envisions a virtual reality-based sequel to the Internet.

Over the years, the meta-verse has evolved, and now this virtual theme has become a reality thanks to a stream of themed applications based on blockchain technology.

The bigger question, though, is whether there can be a metaverse without cryptocurrency. Market experts have a mixed opinion on this, as some believe that cryptocurrencies have no guarantee, while others see them as fuel for the metaverse economy.

On the contrary, metaverse and crypto are two concepts that can exist separately. A token can be useful in the real and virtual world, but the concepts must have a clear synergy with each other.

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

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

BuyUcoin’s CEO Shivam Thakral said, however, that metaverse and crypto cannot be separated as the underlying technology for both is the same and crypto is integrated into the management and operation of the metaverse.

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

“The metaverse can add significant value to the global economy, and that value could be realized in crypto by using it as a payment method,” he added.

The basic premise is that metaverse projects need a medium of exchange or payment mechanism to buy the digital assets of the digital world that are usually tokenized.

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

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

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

If an investor is willing to plan their journey into the meta-verse, they should recognize the potential before investing there, market experts suggest.

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

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

The metaverse will also have to expand from existing constraints and evolve towards interoperability between self, with more assets to be added beyond land, symbols, avatars, structures.

This is followed by extensive research into the basics of Metaverset, Mudrex’s Patel said. “So strategies and experiments based on your research and risk appetite.”

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

“Investors should not just aim to monetize the metaverse at this point and explore it experimentally,” he added. “Metaverse tokens can be a small part of the portfolio depending on risk appetite.”

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