There are many similarities between cryptocurrency and the Metaverse. The Metaverse is a virtual reality, and cryptocurrency is a virtual currency. The Metaverse intended to change the way we live. Cryptocurrency is pegged to change the world’s financial system. Both the Metaverse and cryptocurrency rely on belief in an alternative future. Perhaps in an alternative universe, we would all have been living in the Metaverse using cryptocurrency for our daily transactions. However, we live in a reality where the Metaverse and cryptocurrency have suffered a disappointing 2022.
The Promised Future
Coming into 2022, cryptocurrency was riding on a high. Bitcoin was at its all-time high of $69,000 in November 2021. The most popular cryptocurrencies, such as Ethereum, Binance Coin, and Ripple, also experienced their peaks. This led to a lot of talks about how high cryptocurrency could go. Likewise, although the Metaverse was received with some scepticism, the overall opinion was more positive. However, reflecting on the end of 2022, cryptocurrency and the Metaverse have had a disappointing year. This begs the question, ‘did the crypto market decline impact the Metaverse?’
The Impact Of The Cryptomarket Decline On The Metaverse
Although there is often a lot of talk about the Metaverse, the exact meaning of the Metaverse can be elusive. For some people, the Metaverse is owned by Meta, formerly known as Facebook. Although, the ‘Metaverse’ gained popularity after Mark Zuckerberg announced his vision for the Metaverse. The Metaverse is much larger than Zuckerberg and Meta.
The Metaverse is a collective virtual world that combines augmented reality, social media, virtual reality, and cryptocurrency. Other tech companies such as Google, Microsoft, Nvidia, and Qualcomm are betting billions of dollars in the Metaverse. However, those investments have failed to deliver in 2022, like cryptocurrency.
The above clearly shows that the Metaverse concept exists separately from cryptocurrency. Nonetheless, you can infer a relationship between both from the Metaverse definition. The decline of cryptocurrency showed that maybe the world was not ready for the digital world. In 2021, the public perception was the reverse, with NFTs showing that the digital world was on the rise. Cryptocurrency appears to be a litmus test of the digital world. Thus, the decline of the crypto market has made the Metaverse unappealing to some investors and the general public.
Other Challenges the Metaverse Faces
Besides, the Metaverse has several challenges beyond the crypto market. For one, the Metaverse faces the challenge of convincing people of its adoption. Many argue the Metaverse has no actual use. The crypto market also faces this challenge. There is still a question if both the Metaverse and cryptocurrencies have any real use in today’s world. Until this question is definitively answered, both will likely struggle.
Technological limitations are yet another problem faced by the Metaverse and Cryptocurrency. The Metaverse has promised a new world and reality, yet so far, the Metaverse has failed to deliver a new world. However, as top tech companies continue to invest in the Metaverse, there is hope it might one day pay off. Like the Metaverse, cryptocurrencies also invest in creating better technology. The world’s second-largest cryptocurrency, Ethereum, is currently in the process of an upgrade to an improved version. The Metaverse and the crypto market must continue pushing their technological boundaries.
Despite a difficult 2022, it is too early to rule out the Metaverse and the crypto market. As both make improvements to their technology, there is a chance that the public’s expectations might eventually be met. It is clear that both the Metaverse and cryptocurrency are connected. However, rather than cryptocurrency impacting the Metaverse. It is more likely that it is the Metaverse that will impact cryptocurrency. The Metaverse might be able to give cryptocurrency real-life applications.