What is Metaverse?
As the new buzzword in the online world of technology, the metaverse refers to an alternate digital reality that mirrors the true world where people can socialize, play, work, and trade crypto assets.
The online 3D virtual atmosphere is a game-changer that promises to cover virtual and physical worlds, introduces robust opportunities, and delivers unprecedented virtual experiences for web 3.0 users.
What is crypto?
A cryptocurrency is a digital asset that can flow without the need for a central monetary authority such as a bank or government. Instead, cryptocurrencies are created using cryptographic methods that enable people to sell, buy, or trade them securely.
Bitcoin and other cryptocurrencies are supported by a technology called blockchain, which maintains a tamper-resistant record of transactions and keeps track of who owns what. The creation of blockchain addressed an issue faced by previous efforts to create real digital currencies, stopping people from making copies of their holdings and attempting to pay them twice.
Blockchain and how it powers the cryptocurrency and metaverse
Let’s begin with the principles of technology that lie at the heart of both the metaverse and cryptocurrency. Originally explained by the Satoshi Nakamoto (Bitcoin creator) and now used by other big cryptos such as Ethereum, blockchain is a public digital ledger that saves transaction data. Transactions utilizing a blockchain network can be peer to peer to get rid of intermediaries from user interactions. This can decrease cost, among other things.
Commerce in the online world is still taking place using a digital version of physical-globe fiat currencies. Currencies and blockchain-based on it were developed as a digital-native means of transacting business in a digital globe.
NFTs, crypto coins, and Metaverse
With the potential for social interaction and e-commerce, this is where digital currencies and applications built on a blockchain enter. Direct peer-to-peer interactions on the web hold the promise of immediate settlement of funds and near-zero fees. Item ownership can be promised using an NFT, which could take the form of an art piece, a digital collectible item, or a digital version of a physical globe purchase, such as a pair of Nike sneakers you could also wear in the metaverse.
Here are the best stocks to watch in 2022 that are bridging the space between the metaverse and the cryptocurrencies.
The sandbox is a virtual globe where players can own, build and monetize their gaming experience in the Ethereum blockchain, using Sand Token. Players can make digital assets in the type of Non-Fungible Tokens, upload them to the marketplace and connect them into games with Game Maker.
Decentraland is a virtual reality platform where you can purchase parcels of land. You can develop the plot by building anything you fancy on it. Decentraland, founded in 2007, is one of the earliest entrants in building an Ethereum-based decentralized VR. Each plot of land is sixteen square feet, and just 90601 parcels are accessible.
Prospects for investors and users
Prices of some native tokens used in metaverse have increased in recent years, attracting lots of investor focus. Anyway, keep in mind that investing in digital currencies and tokens built on the blockchain network is very speculative.
Crypto tokens and coins used in the metaverse are not businesses that produce revenue and profits. Instead, they are a type of digital currency that can be used to make purchases or join in the metaverse. So, their values are very subjective and prone to wild swings in price. Individual stocks of businesses are extremely volatile, but investors can make assessments of their worth with profit and revenue metrics, metrics that crypto investors do not have.