The terms metaverse and cryptocurrency are popular in the technological world. These two are interwoven for many investors and developers as they have the potential to become a huge opportunity. Pradeep Agarwal Oracle discusses a variety of metaverse and crypto-related factors and benefits.
“While the metaverse, three-dimensional immersive virtual worlds, and bitcoin are all very distinct, they may become increasingly dependent on one another in the future. The blockchain is a public digital ledger that maintains transaction data. It is the engine that drives the metaverse and cryptocurrency. On a blockchain network, transactions can be peer-to-peer, removing the need for a middleman like a bank or an IT firm in user interactions,” explains Pradeep Agarwal Oracle.
On the internet, transactions are still conducted using a digital version of fiat cash. In the digital age, blockchain and associated currencies were invented as a digital-native means of conducting business. Because of blockchain technology, metaverses, with their 3D virtual worlds and immersive services, are seen by some as a way to enable permissionless interactions between internet users.
Many 3D immersive environments are now available, such as video games that allow players to interact with one another in real-time. Other definitions, on the other hand, claim that these 3D worlds aren’t truly part of the metaverse until they have a fully developed digital economy. Many of these games and services allow users to purchase digital items. This is a common occurrence among video gamers. Outfits and accessories can be bought to improve player performance or change their appearance in-game. Cloud computing services work in a similar way, with a free or low-cost initial package and a paywall for premium or add-on features.
This concept of metaverse shopping could have real-world ramifications. Customers can try on a virtual representation of the apparel in the metaverse before making a purchase. Pradeep Agarwal Oracle discusses ‘digital twins’ of real-world locations, which offer a lot of promise for businesses in terms of property design and building. Individuals who may preview a product, such as furniture, in a digital representation of their home may fall under this category.
This is where cryptocurrencies and blockchain-based apps come in, with the potential for e-commerce and social engagement. Direct internet peer-to-peer transactions have low fees and quick fund settlement. To ensure item ownership, an NFT (non-fungible token) can be employed. It could be a work of art, a digital collectible, or a virtual version of a real-world purchase, such as a pair of Nike sneakers that can be worn in the metaverse.
However, for the time being, the metaverse is mostly restricted to the video game industry and other creative endeavours. According to Pradeep Agarwal of Oracle, the Sandbox, Decentraland, Axie Infinity, and Crypto Baristas are four stocks to watch in 2022 as they bridge the gap between cryptocurrencies and the metaverse.
The prices of various native tokens used in a metaverse have soared in recent years, attracting a lot of investor attention. It’s important to remember that investing in cryptocurrencies and tokens based on the blockchain network is exceedingly dangerous, and not just because it’s a new technology. “Cryptocurrencies and tokens utilised in the metaverse are not for profit businesses. Instead, they’re a type of digital currency that may be used to buy things or communicate with other individuals in the metaverse. Therefore, their value is mostly subjective and subject to market swings. Individual company stocks are likewise incredibly volatile, but investors can assess their value using revenue and profit metrics, which crypto investors lack,” says Pradeep Agarwal of Oracle.
On the other hand, early iterations of the metaverse, hold a lot of promise, especially for those who want to be a part of it. Some cryptos provide their owners a say in a DAO or other virtual firm, providing a new channel for artists and other digital creators. Because this industry is still in its early stages of development, caution is required while investing in it. The intersection between cryptocurrencies and the metaverse, on the other hand, will be worth watching in the next years.
