People can debate anything they want on the metaverse, whether it’s a virtual world or multiple worlds, whether it has intrinsic value or is destined to destroy us. They can also have all the opinions they want about cryptocurrency, whether it’s a terrible investment or an amazing opportunity, it’s the future or it’s just a fad. Regardless of what our culture thinks of either product (because virtual or not, they’re still products), both are creeping into our lives (although more slowly than promoters hoped). , and chances are one or both will gain widespread adoption.
Currently, crypto is a reality, even though it is only legal tender in two countries, and most view it as an investment rather than a form of currency. On the other hand, both from the point of view of its definition and the companies building it, the Metaverse is technically still a vision. There are platforms – Dectraland, Sandbox, Roblox – that offer elements, but a single virtual world in which people live, work and play in parallel with the physical world is still a long way off.
While some experts believe the metaverse will need crypto to survive, what seems more plausible, at least in today’s reality, is that crypto is going to have to wait for the metaverse before it can thrive as a currency. .
This may change. Players and proponents of the crypto space have high hopes for its growing value, both in the physical and virtual worlds. Granted, 76% of financial institutions say they expect to use crypto in the next three years given that it has the right regulatory framework. Putting this in place is a daunting task, but necessary for widespread adoption.
Here is the current situation:
Although these statistics clearly indicate that crypto and the metaverse have a mutually beneficial relationship, they are not codependent on each other. Consider that consumers purchasing in the current developing elements of the metaverse can use a regular credit card to purchase any virtual product. In the physical world, however, at least for now, they cannot use crypto to buy all physical products.
The Metaverse is ground zero for crypto, this is where people will become comfortable using it. As more and more people start exploring the metaverse, they will naturally want to use their currency of choice in each virtual environment, such as choosing to convert your home currency to a foreign currency when visiting another country, although it is just as easy to use a credit card. And, as they start putting crypto into their “wallets” and using it to pay for virtual purchases, the chances of it seeping into commerce in the physical world increase.
The biggest barrier to adoption is the sheer number of cryptocurrencies in the market. Ultimately, this will cause the most friction. Consumers cannot be expected to keep hundreds of currencies handy, even in a digital wallet, and retailers cannot be expected to accept all currencies. The perceived benefit of adopting crypto will be lost very quickly if interaction with it becomes too cumbersome. Imagine that each brand has a different motto. So, when shopping at Walmart, Kroger, Whole Foods, Target, etc., shopping becomes a difficult and confusing task. It is not an experience that consumers will buy.
Another problem is that only a handful of cryptocurrencies on the market actually have value. Just because you create something and assign value to it doesn’t make it valuable. Utility is what gives something value, and some kind of standard needs to be established. Similar to how the European Union adopted a single currency, the crypto market needs to weed out worthless currencies – ideally at one – but realistically at less than five. However, without a governing body, this will not happen quickly.
So in our current reality, the Metaverse is an emerging communication and commerce channel, crypto is an investment for most, a mode of payment for some. The sophistication and maturity of both are low while consumer skepticism is high. The continued volatility in the crypto market is a constant reminder of how many people and how much money has been lost over the past year.
This hesitation, coupled with the tumultuous state of the economy, has a lag effect that impacts consumers’ desire to experiment with either product. If you just look at adoption from the perspective of the basic human psyche, consumers are more concerned about inflation and how much they pay at the gas pump than buying a virtual Adidas jersey. sophisticated that they can only wear in the Metaverse.
Some pundits will continue to argue that crypto will never go mainstream, but given the current rate of change in our world, something is definitely happening. Consider the many economic forecast countries around the world are predicting cashless societies by 2030 at the latest – and it’s becoming even clearer that we’re headed in that direction. After all, what cashless really means is that all currencies will be digital and crypto is digital currency.
In the United States, Widespread Crypto Adoption Will Most Likely Come Down to Grassroots Consumerism, Not So by Mark Zuckerberg vision of the metaverse is coming to fruition and the masses are immersing themselves in it. As history has shown us time and time again, when American consumers decide they want something, they will do just about anything to get their hands on it. So whether they find a must-have product in the Metaverse or in the physical world that can only be purchased with cryptocurrency, they won’t hesitate to convert their hard-earned money into any type of cash. needed to own it.
Michael Scholz is the Vice President, Product & Customer Marketing at trade tools.