Today, we're anchoring on the digital economy of the Metaverse, the 2nd installment of our 3-part series on what the Metaverse is.
If you haven't yet read Part 1: The Basics, I'll wait...
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Now that you're back, let's get stuck into Part 2: Metanomics - The Digital Economy.
Citi published a report a few days ago, estimating the Metaverse economy could reach $13 trillion by 2030. That is an extremely high number for an economy that was valued at $500 billion in 2020 but is a perfect example of how humans can utilise the developing technologies in front of us to really add more value to the world's economy.
As previously discussed, Metanomics (the digital economy of the Metaverse) is where users can create, buy, and sell goods in the form of digital assets. With that said, all digital property still requires a level of authentication such as for one’s metaverse home, car, farm, books, clothing, furniture and more. Additionally, as with any society, individuals would need the ability to travel and trade freely between realms that might have different laws and rules. The interoperable nature of the Metaverse allows for movement within and outside of its digital economy, hence its ability to impact our daily lives at all levels via the jobs we do and infrastructures we build in the Metaverse, just as you would experience in the real world.
COO of Crypto.com, Eric Anziani spoke briefly on the role that NFTs play in the Metaverse as it is often limited to its current success in monetising digital art. He said “NFTs really started initially with the digital art side. But it's going to be a lot more powerful. It will be the tool that represents any digital type of assets in virtual worlds going forward. For those wanting to understand more about the currency that will run the Metaverse, the first place to look is at NFTs.
Non-fungible tokens (NFTs) are behind some of the most extravagant sales made within the digital real estate space, selling properties/land worthy of London, New York and even Tokyo! Besides this, the fashion industry has also got a stake in the metaverse, very early on too, in creating NFT accessories which luxury house, Burberry took the lead on for the Blankos Block Party video game and Louis Vuitton also got involved by launching its own NFT-studded video game, LOUIS THE GAME. These are projects that have come into the Metaverse that are only going to become catalysts for the major use-cases to come in the near future.
Another sector said to be hugely impacted by the development of the Metaverse is Education. Again, within any society, education is a necessity which directly corresponds with the health of a nation's economy. The immersive and illustrative methods used within the Metaverse throws the argument out there that the education offered within the Metaverse may prove to become more valuable than that of traditional classroom-style learning. As curriculums are gamified, statistics show that the majority of 12-18 year olds are more receptive to this type of learning. It also allows for teachers themselves to work even more flexibly and open up their remuneration options from cash and share options to digital currencies and properties. The opportunities are currently endless as well as unfathomable.
Beyond everything else, the Metaverse will support economic growth on a global scale. With all of its hype, it can be easy to forget that at its core, the Metaverse is just a reflection of the real world and so the constitution it is being built on, is easier to understand when in comparison to the activities we carry out daily. Understandably, there are still certain concepts that are hugely under construction but that provides us all with a gateway into this digital evolution and a bit more time to wrap our minds around these concepts. I'd say the best part is that this virtual world has no bounds and no limits so we're welcome to create, and to create freely...
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Liz. #FTWL
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