Why cryptocurrencies are so important in the metaverse

Bitcoin, Ether, Dogecoin: they are all cryptocurrencies that you can use to buy things online (and sometimes even offline, but primarily online). No wonder these coins are often mentioned when it comes to the metaverse.

web3

As we wrote in our article on Web3 and the meta-verse, the future of the Internet is also related to ownership. You will soon want to put your avatar in the latest Nike sneakers and you will want to show a work of art on your television that you have purchased as NFT. All of this is likely to work as decentrally as possible in the future. Not with ordinary money that you have in your bank account from ABN or ING, but money that you have in a wallet in the form of cryptocurrencies.

Facebook is now working on a centralized network: Meta’s metaverse is something Meta is responsible for, just as Facebook is now responsible for Facebook. However, the metaverse ultimately goes further than that: A decentralized network based on blockchain technology. At least in the end it goes no further than that: it already is. Look, for example, at Decentraland and Sandbox, an open metaverse where you can buy a piece of land with your cryptocurrency.

Decentralland

It can also be in game form. For example, within Decentraland you can play games together and earn mana, for which you can buy NFTs or have buildings built for. There will soon be a lot of money involved in the metaverse, and that is certainly not the key. It is also often about blockchain, something that many metavers will be based on. Not all crypto is associated with the metaverse, but Axie and Ethereum are examples of crypto associated with it over and over again.

Does it all sound like abacadabra? No problem, because it still needs to take shape. However, it is useful to know what that blockchain entails exactly: It is a kind of directory in virtual form, where the cards are linked together as links. Each card is a device, a computer that can be placed anywhere, and it takes many computers to make an adjustment in the card chain. This is the best way to view blockchain. It is also because of the large amount of computing power required that it is not seen as a particularly environmentally friendly thing because it uses a lot of power.

Blockchain

Bitcoin is the most famous blockchain crypto: every transaction is recorded in that blockchain again, and that means thousands of computers need to be aware of this change. That is also why it is decentralized: there is no need for a bank to supervise it, because the computers themselves are already a closed chain of joints.

Later, for example, when you buy new shoes in the meta verse, for your avatar, you can probably buy them with cryptocurrencies. Then the blockchain must be started again. Can it also be done with ordinary money? In some metavers yes, just like it is now possible on the internet, but many organizations make metavers based on blockchain, which makes cryptocurrencies very important in this.

Buy NFTs

To buy an NFT you need cryptocurrency. That’s why it’s so popular at the moment to show that you’ve acquired an NFT: it shows that you’re in the crypto, and that’s a huge trend at the moment. This should soon be much more normalized. Ultimately, it is the blockchain that must prove that an NFT belongs to you, but also, for example, the clothes on your avatar or the house he or she lives in. Your cryptocurrency wallet is ultimately about the same as your bank account, only none bank intervenes longer. Furthermore, you are simply making purchases with it as you would if you were now shopping online.

We even assume that your passport is linked to your wallet, so you never have to think about passwords for the virtual worlds you visit: you link your wallet and you log in. That passport is important not only to prove that you are yourself, but also what your age is: to visit strip clubs or gaming houses in the metaverse? Only if you are old enough for this. This is still in the future, but it would be a great way to get rid of remembering all of these passwords or storing them in password managers.

Large companies see $’s

More and more large companies are working on the meta-verse because there is money to be made. Money that may not come in hard dollars or euros, but instead is registered in a blockchain and a virtual wallet, but money is money. And money attracts people and businesses, making it more and more clear that the metaverse is becoming a big thing. Just ask Coca Cola, Dolce & Gabbana, Nike and Disney, in addition to tech companies like Meta and Microsoft.

Do you also want a crypto wallet? Among others, Coinbase and Binance have many cryptocurrencies available that are linked to the meta-verse. Or you can also look for Bitcoin or Ether on other platforms. MANA, SAND and AXS are also large NFTs, but they are often linked to certain metavers, namely Decentraland, Sandbox and Axie Infinity. If you invest, then do it wisely and only with money that should not be used for, for example, your fixed costs and groceries. Moreover, start small: you can always invest more when the time -or the ‘big’ metavers- is there.

Laura Jenny

When not writing, she travels around the wonderful world of entertainment or a cool place in the real world. Mario is the man of her life …

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