Quick Summary:
- Crypto, NFT, and Metaverse are co-related and metaverse particularly is booming because of the insane success of the NFTs in the past year.
- NFTs are helping the metaverse to build itself, while crypto helps it to cement its economical basis.
- Crypto and NFTs are performing beyond their domain and utilities to help the metaverse thrive.
The market had a 2021 value of USD 63.83 billion. How fast is the metaverse market expected to expand between 2022 and 2029? Market growth is anticipated to occur at a CAGR of 47.6 percent.
Metaverse and its relation to NFTs:
Metaverse is a virtual world presented through the AR and VR experience aided by blockchain technology.
Just like a video game character, anyone can live a second life in the metaverse and be anyone. In the metaverse, you can own cars, houses, and other properties, join club memberships, enjoy concerts, and play games.
Almost everything you interact with in the metaverse is NFT. Be it a car, your house, the music you play, and even your own avatar – everything is NFT and tradable on the marketplaces.
Metaverse and its relation to Crypto:
Crypto holds the credit for introducing almost all blockchain products to the world. Non-Fungible tokens, NFTs, work just like cryptocurrencies. How crypto is helping the economy in the metaverse?
Each metaverse is a part of any ecosystem where a project offers NFTs, tokens, metaverse experience, and often a play to earn the game. Users could construct their own virtual environments and make them accessible to other users.
The "metaverse" is going to happen but I don't think any of the existing corporate attempts to intentionally create the metaverse are going anywhere. https://t.co/tVUfq4CWmP
— vitalik.eth (@VitalikButerin) July 30, 2022
Blockchain technology, interoperability, digital ownership, and rules controlling their usage all serve as the foundation for virtual worlds. From incentivizing the creators and artists to funding the entire project, the crypto tokens act as a store of value that can be traded for fiat.
Virtual real estate gives toe-to-toe competition to the real-estate business by selling virtual land plots in the metaverse. Opportunities for investors, innovators, artists, and even speculators exist in these property parcels.
Since the metaverse is such a nascent space, the long-term value of blockchain-based virtual real estate depends on a number of external factors.
Metaverse is experiencing insane growth as the price in virtual real estate grew 879% between September 2019 to March 2021, according to chainanalysis. In 2019, people were buying these virtual land plots for utilities that come along. However, many purchases made today are based on speculations.
Conclusion:
The metaverse is going to capture a lot of attention in the coming years as Meta, Google, Microsoft, and many other giant tech companies are pouring billions into it. Thanks to NFTs and cryptocurrency, we could see a significant shift in how we promote and interact with one another.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
