In my article “Are Bitcoins Market Cycles Destined to Change” I mentioned how important a role I believe the metaverse will play in the expansion of the crypto market. For those not familiar with what the metaverse is, I will offer this simplistic definition: it is a shared decentralized virtual universe running on a blockchain, it is a persistent living experience where an unlimited number of people can interact simultaneously in real-time and a place where almost anything will be possible.
Think of it as a parallel digital world. From my observations gaming will lead the way into the metaverse but as it evolves gaming will be just a part of what the metaverse has to offer.
Some people might say that’s great but aren’t millions of people already engaging in virtual worlds today? This is true but it is not the same thing, these virtual worlds are controlled by centralized corporations that make the rules and control how these worlds evolve. Items that you purchase in these games or worlds can’t be used anywhere else or transferred out of the game. If you purchase items in one of these worlds and the corporation decides for one reason or another to shut it down, you lose everything.
If you think about it, most sites that you visit on the internet are owned by a corporation or another type of centralized organization that controls everything that happens on their website. Visitors to these sites are limited to interacting with whatever features the site owner allows. Also, while you are on their site, many times they are collecting data about you which can be monetized by them later.
The metaverse will be the exact opposite of this where the users are in charge, the users will determine how the metaverse evolves. The users will also control the economic infrastructure, all the assets and worlds will be owned by the users or a collective of users such as clans, factions, organizations, cartels, and syndicates. These groups will form DAOs (decentralized autonomous organizations) to manage assets and voting among other things. A DAO is an organization that is controlled from the ground up by its members with no central leadership. The DAO is governed by the community and has a specific set of rules that are enforced on a blockchain.
Corporations will have a place in the metaverse as well. But, unlike the internet, we will have the choice of whether we want to interact with them. In the metaverse we will own and control our own data, we will also be able to monetize that data if we choose to.
One of the most exciting things to me is the creation of a new global or more accurately said a new galactic economy inside the metaverse. I believe that ultimately this economy will become larger than the economy in the physical world as people spend more and more time in the metaverse. I believe a large part of this new economy will be driven by play-to-earn gaming in the metaverse, at least in the beginning.
List of Play2Earn Blockchain games: https://playtoearn.net/blockchaingames
Players will be able to not only invest in land and equipment but also will be able to start businesses in the metaverse. This in my opinion will be especially important in certain parts of the world where people struggle to make a living. The addition of another massive economy will give them another way to make a living or a way to supplement their current income. This is already happening in the Philippines and Vietnam with players earning $1500 to $2000 per month, and some even quitting their full-time jobs to concentrate on play-to-earn gaming.
In my opinion, the creation of play-to-earn blockchain games will lead to a paradigm shift in the gaming industry. The contrast between play-to-earn gaming and traditional gaming is like night and day. One where players own the assets they buy for the game and the other where any game assets you buy can never leave the game. With play-to-earn gaming, the NFTs that represent in-game assets are stored in your crypto wallet. With traditional gaming your assets are stored in the game, if the game dies you lose everything.
I believe as more players experience true digital ownership of their game assets and the potential to profit from playing a game, they will choose en masse the play-to-earn games. If this does happen the gaming industry would have no choice but to give the players what they want, more play-to-earn games.
Just the thought of a massive new economy with a variety of cryptocurrencies at its core really excites me. This could very well expose millions of people to the world of cryptocurrencies who otherwise may have never thought of using them. I believe it will also normalize the use of cryptocurrencies in the real world as more and more people are exposed to cryptocurrency use in the metaverse then transfer that experience to the real world.
My first exposure to cryptocurrencies was in early 2017. I am amazed at the speed at which cryptocurrencies are becoming mainstream since then and especially over the last 12 months. I am equally amazed by the innovation that has occurred in the last 12 to 18 months. With the addition of play-to-earn gaming and the metaverse, I have to believe that will only accelerate this trend.
Until next time, take care!