Cryptocurrencies and Metaverse: What is their relationship?

We tell you everything you need to know about 2 concepts that dominate today: Cryptocurrencies and the Metaverse.

As we told you in the first installment, the metaverse or web3 is a parallel universe in which you can develop a digital life equivalent to the one we know in the physical world.

Since in the digital world there are no real banknotes or coins, this space is used to make transactions with cryptocurrencies, which are virtual currencies, generally not recognized by central banks.

More of them are launched from time to time and there will probably be as many as there are real currencies in the countries.

The best known are BitCoin, Ethereum, Solana, Binance Coin, Polygon, Avalanche Token and Kitti Inu, however, others, very profitable, have already appeared in the metaverse:

Realy, Starsharks, Avaxtars Token, Senso and Ufo Gaming.

How do cryptocurrencies work?

To buy cryptocurrencies it is necessary to pay their value in dollars or euros and make transactions on the stock exchange to make a profit, as they work just like a store of value, such as gold.

When many people buy gold, its value goes up and vice versa; the same happens with cryptocurrencies, which explains their success in recent years.

Shopping with Cryptocurrencies in the Metaverse

With cryptocurrencies it is possible to buy objects in the metaverse such as houses, cars, boats, art, clothes, experiences, concerts and virtual “food” or “drinks”.

Thus, a property in the metaverse can increase in value as it does in the real world, or lose its value.

Those who already own cryptocurrencies enter the metaverse to enjoy the experience and can spend their money there.

The transactions are then virtual, but the coins are the result of a purchase in real currency.

The concept of ownership within the Metaverse

Once a house is purchased, its holder is given a title deed which he can exchange or sell as he wishes within the metaverse and can invite his friends and family there in his digital avatar form.

Each of the guests must gain access to the metaverse through virtual reality glasses and an application that must be downloaded onto the glasses, and it is not necessary to buy anything inside this virtual space.

It is possible to enter the metaverse and walk through all the spaces, except those that are someone’s private property, for which you should be invited.

Those with properties can design their homes or buy one that is already built and decorate it to their liking by purchasing all the elements in a virtual store.

You will also have a closet to fill with virtual clothes that you can buy in cyberspace stores, wear and resell on the second-hand market.

Cryptocurrencies with more presence in the Metaverse

Regarding the use of cryptocurrencies, it is possible to invest in the metaverse and earn profits:

for example, the Realy currency is a medium for buying and selling luxury goods and has seen gains in excess of 180%.

StarSharks is a currency dedicated to buying and selling games, financing projects, investing in shark aquariums and renting NFTs.

Its gain was 36%.

Avaxtars is a coin that is earned by playing and its profit was 27%.

Senso is the digital currency of Sensorium Galaxy which is a virtual reality social network within the metaverse, i.e. a metaverse within the metaverse and is used in the entertainment industry, with earnings of 27%.

Lastly, UFO Gaming is a medium of exchange in the video game of the same name in which people interact by creating communities. Its profits were 41%.

The site to learn more about this news is https://coinmarketcap.com/.

Cryptocurrencies and NFT

Another way to spend cryptocurrencies and at the same time earn money with the transactions are the NFT (Non-Fungible-Token). Fungible goods are those that can be transformed, like Bitcoin or like banknotes, as one hundred can be transformed into 5 out of 20.

NFTs are the opposite of cryptocurrencies because they can’t be transformed and that’s why they are used to give value to artwork or player passes. Thus, when I buy art in the metaverse, I have an NFT.

To explain it better, an artist creates a digital work that can be displayed on the walls of the metaverse or in a digital format by projecting it in a hologram or with augmented reality.

The artist then creates unique works that are serialized and assigns them a non-fungible token (NFT) that is given to its buyer in exchange for cryptocurrencies and can be owned indefinitely.

You can also sell it for a higher price and make a profit, just as you do with real-world art.

All these cryptocurrency and NFT transactions are carried out on Blockchain developments, which is a recent way of dividing the information of a piece of data among three holders, making its transformation impossible if all three do not agree.

Particularly NFTs are created with Ethereum cryptocurrencies and its blockchain.

NFT’s most famous artists are now Mike Winkleman or his alias Beeple, David Kochney, Jeff Koons, Vhils, Alexa Meade, Breakfast, Blake Kathryn, Axie Infinity Cryptopunks, Art Blocks and Bored Ape Yacht Club.

The clear relationship between cryptocurrencies and the metaverse is just beginning and there are USD$1 trillion worth of property transactions.

As we have explained, cryptocurrencies are the basis of e-commerce in the metaverse and to get into the game, real bills are required to buy them.

We will discuss each of these topics in more detail below.

If you want to know more about the Metaverse, in this other article we tell you the main reasons to enter this new virtual universe.

And for those of you who already have a project in mind, we invite you to discover our Metaverse service for companies.