Monday, January 17

Is it worth investing in Metaverse cryptocurrencies?

Often cited in movies and TV series, the metaverse did not emerge recently due to Mark Zuckerberg changing the Facebook company name to Meta. Since 1992, Neal Stepherson has used the term to describe a 3D virtual world experienced by avatars of real people.

The recent surge in interest in the metaverse came because Mark Zuckerberg changed his company name from Facebook to Meta. With that, several tokens that already existed related to the virtual world went off in the market, and several others emerged.

However, the question that remains is whether it is worth diving into this new wave that has been emerging with the metaverse.

What is the metaverse?

Theoretically, the metaverse is a 3D virtual space that connects people using virtual and augmented reality.

These technologies are still not fully present today for everyone to access, however, it is possible to experience what the metaverse has to offer using augmented reality VR glasses.

In addition, several games and virtual worlds already exist and can provide the user with an experience similar to what the metaverse wants to deliver in the future.

The metaverse virtual space is intended to connect people in different regions of the world, in addition to offering everything that the real world can: economics, entertainment, art, work environments and much more.

Why did the metaverse become popular?

The idea and the term metaverse had been around for a long time, and the tokens linked to this idea were also already present in the cryptocurrency market.

Even games like Fortninte were already providing a metaverse-like experience for players, featuring shows by real artists such as Ariana Grande and Travis Scott.

Some technology companies were also studying about mataverso. However, the announcement by Mark Zuckerberg, CEO of Meta (formerly Facebook), by changing the company’s name and showing everyone what he wants to do with the metaverse, shook the market.

Not only with cryptocurrencies, but in the traditional market, technology companies and others listed on the stock exchange also saw growth opportunities in the metaverse. In addition, companies like Microsoft also took the opportunity to show their projects related to the topic.

Now, in addition to technology giants, Nike, Adidas, Louis Vuitton, Gucci and other brands are also eyeing the metaverse and creating their virtual worlds and NFTs to be part of the 3D virtual future.

Which companies are focused on the metaverse?

  • Meta (Facebook): Mark Zuckerberg’s company was already studying and investing in the metaverse, looking for ways to implement the technology. The company even acquired a virtual reality glasses manufacturer, Oculus VR. In addition, the Target will be able to offer around 10 thousand job openings in the next years to proceed with the advancement of the metaverse development.
  • Microsoft: a big tech It also has plans to advance the technology of its video conferencing platform, Teams, to allow people to have more real-world experiences with avatars and the use of in-app augmented reality on the desktop.
  • Nvidia: Nvidia, another tech giant, in November launched an interactive avatar creation platform that uses artificial intelligence, Omniverse Avatar.
  • Epic games: the game company whose flagship game Fortnite has been showing interest in the metaverse for some time. With COVID-19, the company promoted artist shows in the game and allowed users (players) to interact through their avatars. Epic Games has several plans with the metaverse and the company’s CEO, Tim Sweeney, has already declared that this is an industry of several trillion dollars.

What are the metaverse tokens?

With the advance of rumors about the metaverse, several tokens and cryptocurrencies “linked” to the metaverse emerged in a short time. However, there were already some tokens with the proposal of a virtual world.

Highlighting the main ones:

  • Decentraland (MANA): Decentraland is a virtual space, where you can use the native token (MANA) to create, buy and sell virtual land, in addition to selling digital items. In November, the most expensive sale of a virtual land from Decentraland was made, which cost 2.4 million dollars.
  • The Sandbox (SAND): The Sandbox is another virtual universe that uses the native token (SAND) to trade items on the platform. Inside it is possible to create virtual spaces and interact with other characters. In November, Adidas announced that it will create a virtual space in the Sandbox, adiVerse. Furthermore, in December a user paid the equivalent of 2.5 million reais to build a land next to Snoop Dogg’s in the Sandbox. See how to buy SAND.
  • Gala (GALA): Gala is a currency blockchain platform developed by Gala Games, which aims to expand the gaming concept play-to-earn and pays users with the native token (GALA). The company wants to expand the games in the metaverse and the token came to value 48,000% in just three months.

Is it worth investing in the metaverse?

It is inevitable that currencies coming from the metaverse show interesting profits for users in the short and medium term. In November, the above tokens appreciated 200% in the cryptocurrency market.

However, projections about the metaverse are still uncertain and caution is needed when investing. Although the movement was positive, in early December several metaverse tokens plummeted, this is because these assets are extremely speculative bets.

In addition, a survey carried out by the IntoTheBlock showed that 32% of buyers from Decentraland (MANA) invested in the token in the last 30 days.

Therefore, you need to be careful when investing in a metaverse token. However, another alternative to investing in the metaverse is buying shares from big techs, technology companies that are eyeing the development of this new digital world, such as Meta, Microsoft, Google, Apple and Nvidia.

Can bitcoin be part of the metaverse?

Bitcoin, as well as any other asset in the digital world, may find space in the metaverse in the future. However, the current solutions that bitcoin seeks to develop and improve are tied to the user experience, such as scalability.

Promoting the use of virtual spaces, De-Fi protocols and NFTs in a scalable way is essential for a cryptoeconomy to work in the metaverse. Bitcoin develops these solutions more slowly and in different layers. NFTs, Smart Contracts and De-Fi can be done in bitcoin via chains (layers) secondary.

the universe of dApps (decentralized apps) with bitcoin is part of the future of Bit-Fi, and this could definitely involve the metaverse based on a hard-currency economy like bitcoin.

today the games play-to-earn with bitcoin, like CS:GO with the Zebedee Infuse, has the potential to leverage the future of interoperability of games that share the same native currency, and this is a gateway to building a metaverse with bitcoin.

It is certainly uncertain to expect bitcoin to develop these characteristics so quickly, given the conservative nature of the network (which makes it so superior), and it is impossible to predict that the tokens that support such playful universes will remain firm for a long time.