This week is the week to be paying CLOSE attention to macroeconomics, the Bitcoin price, and the Fed meetings. The bottom of the bear market could be closer than we think!
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What is the Metaverse?
Metaverse is a virtual world with a blockchain-based system of transactions. It’s a place where avatars and other digital assets can be traded for real-world values. This is often done using cryptography to support a digital economy and secure virtual representations of ownership. Today, the metaverse is mostly populated by games such as Roblox, Fortnite, and other similar projects. Some of these metaverses even accept cryptocurrency as payment.
Despite the term “metaverse”, this virtual reality system is still in the early stages. It’s not meant to replace reality, but to supplement it. At the moment, metaverse technology is most commonly used in games for computers and consoles. Companies like Roblox are even working on creating their own metaverse games.
The Metaverse has attracted investors from many different sectors. Blockchain-based applications enable users to own virtual land in the virtual world. The aim is to make money by playing games. Some popular metaverses include SecondLive, Decentraland, and Axie Infinity. These games use the Ethereum blockchain. The Axies in these games are non-fungible tokens. Users can build Axies using over 500 parts, and they can breed with other Axies up to seven times, selling the offspring on the game platform.
With the growth of social media, the metaverse can be used as an avenue for businesses to reach new markets. However, this system comes with some dark sides, including high volatility of most cryptocurrencies, lack of regulation, and a lack of privacy protection. Big companies are likely to benefit more from this technology than smaller ones. These firms have plenty of budgets and can build trust and privacy measures.
