We are seeing a lot of focus being placed upon the Metaverse. This is something that is starting to capture the attention of many. A short time ago, this idea was only in the minds of a relatively small group of people. Now, we are seeing articles that are starting to bring it to the masses.
What is really not being discussed is the part blockchain and cryptocurrency are going to play in this. Nor are people really mentioning the economic potential. Truthfully, this is one of the most exciting parts since it takes things, globally, to an entirely new level.
Of course, those who are involved in cryptocurrency understand a great deal about what is taking place. We discuss topics such as the Age of Abundance. Not only is this written about but many are starting to live it. With the advancement of DeFi that is providing outstanding returns to people along with the #Play2Earn environment, we are seeing the beginning phases of what will be a completely new economy.
Metaverse Economics
This is something that people in cryptocurrency are starting to grasp.
A great way how all of this will look is this way (wish I could link where I found it):
- open economic system unifying all things
Here we see what the Metaverse is truly about. While many focus upon the virtual aspects, ultimately it comes down to the economics behind it all. That is what is going to change everything. We are embarking upon an entirely new economic system, one which we have not formulated a clear name for.
Personally, crypto-economics seems to fit well.
The concept just mentioned is nothing new for those who follow cryptocurrency to any great degree. Another way of phrasing what is tokenization of everything. The ideas are interchangeable.
It is why blockchain and cryptocurrency are going to be such a big part of the upcoming Metaverse. To deny this means we have to discount some major probabilities.
For example, to think cryptocurrency is nothing means that one has to eliminate the entire premise of the next generation Internet. While there is a lot of work to be done and technical challenges to overcome, there is little doubt it is on its way.
This means that, if one embraces it yet denies the future of cryptocurrency, the belief is we will see fiat dominating this realm. Coupled with this is the idea that governments will also have a major part in this new world that is developing.
Personally, it is a harder forecast to believe than the future success of cryptocurrency. The established system is already having a difficult time with the digital world. It is only going to get worse.
Trend Already In Place
What we are witnessing is evolutionary. Realistically, we are only about 13 years into this shift. There was something that happened near the end of the last decade that changed everything.
No, it wasn't the introduction of Bitcoin, at least not in this case.
Instead, it was the birth of the smartphone. When Apple™ brought out its product, things changed completely. The entire way we interacted with the Internet was instantly altered forever.
This, of course, is showing up in terms of economic impact. Again, this is a growing realm meaning that the trend is long term and established.
Here is a chart detailing M-Commerce. It only goes through 2017 but the trend is only growing.
Source
This details the percentage of E-Commerce sales that are done on mobile. As we can see, it is a rapidly growing aspect of all online sales. In a decade, the economic impact of the smartphone is rather clear.
Now that we know mobile is growing, what about E-Commerce in general? We notice a similar trend.
This chart goes through 2020, before the lockdowns occurred. We know this online shopping skyrocketed during that period and that, even though it fell off a bit, is still on a higher trend than before.
Source
We also have to note this chart shows the percentage of all retail sales. There are some things that obviously are not purchased online yet fit into the retail sector such as gasoline.
Nevertheless, again we see a long-term trend in place that is increasing at an exponential rate. This is factoring into the shift that is before us.
From Atoms To Bits
This is one of the most overlooked concepts taking place. We are moving a lot of things from the physical to the digital. This means we are going from dealing with atoms to bits.
Consider the idea of ebooks. This took something physical that carried limitations and made it virtually unlimited. Publishers put together a certain amount of books during each run. This is not the case with ebooks. There is no limit to the amount that can be sold and downloaded.
The same is true for music. Without the physical item such as a CD, a site could sell as many downloads as the buying public wants. The world of bits bring us to the unlimited.
Money also saw this transformation. When it left the physical, the unlimited was unleashed. Many feel this is a negative. What they overlook is the fact that unlimited money supply was coupled with a part of the economy becoming unlimited also. Of course, the proverbial, you ain't seen nothing yet enters the discussion.
Gaming is getting bigger. Just think of how many games will be developed over the next decade. Now consider all the in-game assets that will be bought. There is no limit to them since none exist on the physical plane. Developers can simply keep creating more assets that will feed into the network effect of their games.
It is why cryptocurrency, in spite of more being developed, will not have an inflationary impact on prices. Since much of our world is going digital, the items offered in this realm is only going to expand.
This will end up creating enormous financial opportunities.
Just ponder how each person is literally going to be transformed into a content creator. Each day we all create a digital footprint. Presently, we do not own it.
The Metaverse is an open economic system unifying all things. Through tokenization hundreds of trillions of dollars of physical assets will have digital representation. At the same time, we might see an equal amount (if not more) of assets that are created yet only reside in the digital realm. All of the later will only exist through cryptocurrency and have no tied to the fiat system.
All of this is presenting us with the massive economic potential of cryptocurrency. It truly is setting us up for the Age of Abundance.
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Crypto has unlimited potential and it has solved the biggest problem for all of humanity - money. Now everyone has a chance to become their own bank and grow the money by just investing in good projects or creating them. Owning a digital asset is much more convenient than owning a physical one.
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Wow, I had not seen that small trend of moving from atoms to bits, but I think that from there goes the growth situation that is causing the traditional economy to pass from hands and the large landowners of yesteryear are now some or other lagging behind, With the new nerdy millionaires who have appeared overnight making and forging fortunes in a few short years, and it looks like the trend will continue to grow.
The metaverse has not yet fully entered but I believe that our children will be reversed in that realm much more than we believed, I see that what the science fiction movies showed a few years ago as something distant is getting closer every day I think that the Interstellar travel will become more real and closer every day or perhaps we can do it from the chair and comfort of our home with an augmented reality viewer.
Well for now we are hardly exposed to this because of what splinterland has taught us, I suppose that agroed is already thinking about riding splinter land as an augmented reality where we can enter as an avatar and be personally in battle as a general giando our first-class army hand in the front row without pressing click but giving orders like a god, I think that's where we're going.
Sorry for not appearing but we are very busy but even if I do not comment I always read your interesting futuristic blogs that inspire us and give us confidence of the crazy growth that is coming.
Best regard.
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Games are literally creating wealth out of nothing but time. A lot of people will be attracted to that!
Atoms to bits as our technology (the transistor specifically) moves to atomic scales. We are truly living through some great transformations. The metaverse will be the biggest use case for NFTs in the long run, they may seem like a fad now, but when the hype, mania, and newness wears off, it's gaming and the metaverse that will drive innovation within the NFT market. Nice post thank you
In a few decades from now the only existent economy will be around crypto. the current financial system makes no sense in a digital era.
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We are already seeing this on Splinterlands.
Just imagine how much more products Splinterlands will create down the line and give first hand perks to early adopters or governance token holders....thereby generating more value,...true words you’ve written here...true words.
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Everything is going digital so I am not surprised that crypto can skyrocket even if it slowly gathers a portion of the new market share. However what do you think is the future of buying/selling? Will it be cryptos with high volatility or will it be stablecoins with more stability?
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I totally agree as the world evolves along with technology and these days there is just an acceptance for change. This is what has made the biggest impacts as everyone just waits for the next thing and wants to move towards it. You are right in saying we haven't seen anything yet in crypto as this is just getting started and thank goodness we are early adopters.
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I need to live another 50 years 😉
!BBH
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Very informative article! Thank you! Keep up the good work! I truly hope the future will be as you described it, which seems very realistic indeed! :)