Cryptoverse — On NFTs, Metaverse and more…
I recently attended a webinar by Statista on the topic of NFTs, Metaverse and crypto which got me to research further in the cryptoverse, so here it goes…
- Metaverse
The most amazing story about Metaverse that I came across was an Indian wedding reception using digital avatars. The couple from India announced that their wedding will take place in the Polygon blockchain, with a virtual location resembling Harry Potter’s background. An avatar of the bride’s late father would preside over the virtual wedding and gifts and vouchers or currency changing hands will be via Google Pay / cryptocurrencies. Food would be delivered using the local food supply app. Isn’t this amazing?!
To give the layman an introduction about the topic, Metaverse isn’t a product but a concept. It is the vision of a shared virtual world, of what the concept could become with avatars walking around, you could go to a digital office, or attend virtual events.
Big brands are creating their own online environment. A few examples being the Arianna Grande Metaverse concert for the popular game Fortnite, Nike in partnership with Roblox to create Nikeland.
From this conference I attended, I found an astounding figure, 785 billion dollars! That’s what the value of Metaverse could be. To add to that, there is a use case for buying and selling virtual real estate, the prices for which are volatile now but who knows the future? The opportunities here are endless. Tell you what, if there’s a startup coming in with making this concept a reality —I’m going all in! Keeping all of the above in mind, as Mark Zuckerberg said — “It could be another 5–10 years till Metaverse is mainstream”
2. NFTs
I’m sure most of you have heard the NFT joke — “I wake up at 9 am to go do my job where a 19 year old is making millions by selling a swiggly line of NFT” . With that I’m sure most of you are aware that the value of NFT collectibles are growing by the minute, even an oldie like Amitabh Bachchan has cashed in on it. It’s times like these I wish I had studied Computer Science.
Let’s again go basic — NFTs or non fungible token is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger. Types of NFT data units may be associated with digital files such as photos, videos, and audio. There is a risk of user acceptance surrounding NFTs — not everyone might like the idea of NFTs. Too much monetisation is frowned upon. For instance, Stalker 2 which was earlier supposed to include NFTs in their Metaverse of the game have backtracked on the decision to do so.
Personally, I’m not a fan of NFTs, never liked them. Earn money the hard way by doing a 9 to 5 job you 19 year olds!
3. Cryptocurrencies
This is a second post about cryptocurrencies, but my opinion — I’m all about thinking that cryptocurrencies are going to the moon, but to all the people who think they are going to be millionnaires by investing ten grand in Bitcoin, I’d say stay focused on your job! And I’ll support my comment with some developments and risks associate with crypto:
Risks:
a. Sustainability: Annual energy consumption of mining a crypto is similar to that of an industrial plant
b. Cybercrime: What if someone steals your crypto?
c. Method of payment: All that talk about crypto being used as a method of payment, but is it sustainable? Companies have gone back and forth.
Developments:
a. Bitcoin mining: In 2021, China banned crypto mining which lead to changes which lead to America mining 22% of crypto. In 2022, political upheaval could lead to uncertainties about cryptocurrencies. Kazakhstan, for instance, was home to about one-fifth of the world’s bitcoin mining at the end of August 2021. But local miners have been faced with electricity rationing, they have been pretty much cut off from electricity supply. Russia, as well as proposed a potential ban on the mining of cryptocurrencies.
b. The arrival of digital coin: China will launch a digital currency, E-CNY. Which seems as a positive development, but only for China; might not be so good for international business.
Overall, I believe there is a big future ahead of us. What I’ve not covered is mixed reality, Artificial Intelligence and Machine Learning. If you’re interested in it, definitely check out Satya Nadella’s “Hit Refresh”, you’ll get some trends and insights from a CEO, not from a business school student interested in tech and finance :)
