The metaverse and cryptocurrency are hot technology buzzwords. For many investors and developers, these two are intertwined and have the potential to become a big opportunity. A seasoned market analyst and lobbyist, Deepak Talwar introduces many factors and benefits related to metaverse and crypto – combined.
“While the metaverse, three-dimensional immersive virtual worlds and cryptocurrency are very different things, the two may come to strongly rely on each other as they evolve,” says Deepak Talwar, a seasoned market analyst and lobbyist. A public digital ledger that stores transaction data is known as the blockchain. It powers the metaverse and cryptocurrency. Transactions on a blockchain network can be peer-to-peer, eliminating the need for an intermediary such as a bank or IT firm in user interactions. This, among other things, can save money.
On the internet, commerce is still conducted with a digital equivalent of physical-world fiat currency. “Blockchain and its currencies were created as a digital-native means of conducting business in the digital age. Metaverses, with their 3D virtual worlds and immersive services, are regarded by some as a possibility to generate permissionless interactions between internet users, thanks to blockchain technology,” says Talwar.
Today, there are many 3D immersive worlds available, such as video games in which players can interact with one another in real-time. However, according to other definitions, these 3D worlds aren’t genuinely part of the metaverse unless they include a fully-fledged digital economy. Users can buy digital objects in many of these games and services. This is a typical practise among video gamers. Outfits and accessories can be purchased to boost player performance or modify in-game appearance. Cloud computing-based services follow a similar model, offering a free or low-cost initial package while enforcing a paywall for premium or add-on functionality.
This metaverse shopping notion could have real-world implications. Before making a purchase, customers might try on a virtual version of the clothing in the metaverse. Deepak Talwar, a seasoned market analyst and lobbyist, talks a lot about the ‘digital twins’ of real-world locales, which have a lot of potential for businesses when it comes to property design and construction. Individuals who may preview a product, such as a furniture, in a digital recreation of their home could be considered in the same category.
With the potential for e-commerce and social engagement, this is where cryptocurrencies and blockchain-based apps enter. Direct peer-to-peer interactions via the internet offer near-zero fees and fast fund settlement. An NFT (non-fungible token) can be used to guarantee item ownership. It could be a piece of art, a digital collectable item, or a digital counterpart of a physical world purchase, such as a pair of Nike sneakers that can be worn in the metaverse.
However, for the time being, the metaverse is primarily confined to the video game industry and other inventive projects. Deepak Talwar outlines four stocks to keep an eye on in 2022 as they bridge the gap between cryptocurrencies and the metaverse – The Sandbox, Decentraland, Axie Infinity, and Crypto Baristas.
In recent years, the prices of several native tokens utilised in a metaverse have surged, generating a lot of investor interest. Keep in mind that investing in cryptocurrencies and tokens based on a blockchain network is extremely risky, and not simply because they’re new technology. “Cryptocurrencies and tokens used in the metaverse aren’t businesses that make money. Instead, they’re a form of digital currency that may be used to make purchases or interact with other people in the metaverse. So, their worth is largely subjective and vulnerable to price fluctuations. Individual stocks of businesses are also extremely volatile, but investors can analyse their worth using revenue and profit measures, which crypto investors lack,” informs Deepak Talwar, a seasoned market analyst and lobbyist.
However, early versions of the metaverse show a lot of promise, especially for individuals who want to participate in them. Some cryptos provide their owners a say in a DAO or other virtual enterprise, giving artists and other digital creators a new outlet for their work. When it comes to investing in this field, being cautious is crucial because it is still in the early stages of development. However, in the next few years, the junction between cryptocurrencies and the metaverse will be worth keeping an eye on.
