Thursday, January 27

Is the metaverse good for Bitcoin? This is the opinion of a Bank of America strategist

Interest in metaverses has grown after the announcement that Facebook, now Meta, would begin developing its own metaverse. In a new world of digital interaction: What role would bitcoin and the rest of the cryptocurrencies play? Bank of America research director Haim Israel anticipates what would be a possible outlook.

In a interview For the magazine Markets Insider given this Tuesday, November 30, Haim Israel, pointed out certain opportunities that cryptocurrencies could live in this concept called metaverse.

For Haim, the metaverse would mean a “mass adoption opportunity” since users would make use of “cryptocurrencies as currencies [de pago]» referring to the fact that digital payments would be made using crypto assets.

The growth of the metaverse would mean the growth of cryptocurrencies, according to the director of research. The metaverse would be the ultimate way for people to freely start using cryptocurrencies as a form of payment.

For Israel, the idea of ​​decentralized metaverses generates more trust in the people than one controlled by large corporations. However, this point is contradictory, given that people are interested in the developed Facebook, not the decentralized metaverses. This taking into account that this concept, within the ecosystem of cryptocurrencies, has been around for a long time, as is the case of Descentraland.

However, according to Haim himself, there are challenges to overcome regarding the possible adoption of cryptocurrencies in future metaverses. One of the main cases is the issue of volatility. Because of this, companies that develop their own metaverses — taking into account that this concept is not exclusive to Facebook— they will look favorably on stable coins, according to Israel’s opinion.

Haim’s opinions could have weight in the decisions of the bank due to his position as director of research. Source: Linkedin.

Although it is a hypothetical future, the interest in the use of cryptocurrencies within the metaverse is already a reality. Descentraland, the pioneer of decentralized metaverses in the cryptocurrency ecosystem, recently became known that one of the land within this virtual world was sold for approximately $ 2.8 million. The transaction, obviously, was made with crypto assets.

The concept of metaverse refers to human interaction within a virtual world through digital avatars. In particular, this concept is nothing new, since games like SecondLife have been exploring this type of theme for quite some time.

Facebook’s rebrand has raised interest. According to its CEO, Mark Zuckerberg, Meta will now develop its own metaverse. In this sense, the adoption of cryptocurrencies will depend on the corporate decessions that the company takes.

Facebook, or Meta, in this case, will only develop your metaverse, not the metaverse. Since defining it this way, would be comparable to saying that Facebook is creating the Internet.