Metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space including the sum of all virtual worlds, augmented reality, and the Internet. We have come a long way to reach the emergence of the Metaverse. From social media, cryptocurrency, blockchain to augmented reality and virtual reality, these all play a vital role in creating the Metaverse. But is this all hype or is it the future?
The rise of digital payment and crypto plays an important part in the metaverse. Before digital payment and crypto are popular, it is basically impossible to transact online easily, but with the cashless trend being more and more popular it is very efficient to pay online to a company or another user. Crypto takes this even further by offering encrypted transactions which are basically impossible to track, this allows users to freely transact in the metaverse without any regulation or control by others.
Due to the pandemic, a lot of in-person events have been canceled and companies and artists are finding ways to present these events through different channels, and doing it through metaverse is one of them. The most iconic show is famous rapper Travis Scott performing in Fortnite, one of the most popular games in the world right now, the response is polarised but it is no doubt that the visuals are stunning. Meanwhile, some fashion brands are also turning their fashion shows from physical to virtual by presenting them online through the Metaverse, which created a buzz in the fashion world.
Snapchat (SNAP), one of the most popular social media introduced the bitmoji feature a while ago which allows you to create a virtual version of yourself where you can choose different hairstyles, outfits and etc inside the Snapchat app. A lot of people are loving the feature and Snapchat is using this opportunity to collab with clothing brands such as Off-White, a brand popular among teenagers, Vans, and others to offer unique outfits for their bitmoji.
NFT and crypto art is the latest trending topic in the world. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files, it is tracked on blockchains to provide the owner with proof of ownership that is separate from copyright. We used to only value physical art but people are able to now buy NFT art using cryptocurrency. NFT plays an important role in the metaverse as you can think of it essentially as art in the metaverse. The popularity of NFT is rising rapidly, the sales of NFT exceeded $2 billion during the first quarter of 2021.
The recent announcement of Facebook (FB) changing its name to Meta showed how confident they are about the Metaverse. Their announcement further ignited investors’ interest in the Metaverse. The popularity of Metaverse games such as Sandbox (SAND), Decenterland (MANA), Axe Infinity (AXS), and etc, skyrocketed, which is followed by their crypto prices as well. Investors who want exposure to the Metaverse can buy these cryptocurrencies easily through crypto exchanges such as Binance (if you use this exclusive link to sign up on Binance now you can get a 10% rebate on all crypto trading fees). Another popular virtual reality game, Roblox (RBLX), reported good earnings and the stock popped 30%.
I think the rising trend of Metaverse is not going to slow down anytime soon as more and more people are being introduced to it. However, I think it might not be as dominant as a lot of people think it would be as older generations are reluctant to accept the concept of Metaverse which is understandable. Also, even though the Metaverse does provide an interesting alternative space for us to interact and “live” in, but at the end of the day we are still living in the physical world and I think it is important for us to be able to strike a balance between both worlds.
Check out another article here How to invest in the Metaverse
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