Metaverse: Can there be a metaverse without cryptocurrencies? This is what the experts say

New Delhi: Metaverse is a buzzword among technocrats and crypto enthusiasts. Metaverses are connected virtual 3D worlds, where people can communicate virtually.

However, this is not the full reality. The term encompasses a wide variety of virtual realities, from work tools to games 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 proposes a virtual reality-based successor to the Internet.

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

However, the bigger question is whether there can be a metaverse without cryptocurrency. Market experts have mixed views on this as some believe cryptos have no justification, 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 usable 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 could be used to power the economy in the metaverse. “Crypto could be used as a utility in metaverse platforms in the future,” he added.

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

However, BuyUcoin CEO Shivam Thakral said that metaverse and crypto cannot be separated as the underlying technology for both is the same and crypto is an integral part of the governance and operation of the metaverse.

Contrary to their opinion, 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 could add significant value to the global economy, and that value could be realized in crypto by using it as a means of payment,” he added.

The premise is that metaverse projects need an exchange or payment mechanism to buy the digital assets in the digital world, which are usually tokenized.

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

So far, cryptocurrency is the only accepted currency in the metaverse. 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 just 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 to the metaverse, they should recognize the potential before investing there, market experts suggest.

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

“Metaverse real estate has a somewhat high barrier to entry 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.

Also the metaverse will have to expand from existing constraints and evolve towards interoperability between selves, with more assets to be added than land, symbols, avatars, structures.

This is followed by extensive research into the foundations of the Metaverse, said Patel of Mudrex. “Then set a strategy and experiment based on your research and risk appetite.”

Blockchain and crypto enthusiasts are entering the field through their wallets. However, the niche understanding of the theme allows them to broaden the portfolio wisely and lower the stakes.

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

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