There are three general perspectives on cryptocurrency:
- It’s seen as a game-changing revolution that will shape the future with decentralized blockchains overtaking centralized financial systems.
- Some view it as a temporary fad or a scam that will eventually fade away like many other innovations.
- Some believe that it will bring new services to the world, but it will only be an enhancement rather than a transformative revolution.
The concept of the metaverse and crypto is new and constantly evolving, making it difficult to define exactly what they are. The internet of the past cannot really be used to define the future.
The idea of the metaverse is not well understood, and anyone who claims to know what it looks like may not be telling the truth. The understanding of crypto is also unclear, with different people viewing it as money, stock, digital gold, or a hoax. Regulators, such as the U.S. Securities and Exchange Commission, are trying to find the best way to regulate crypto, but some people are against over-regulation as it can draw too much attention to it. Currently, crypto is not a complete, claimable thing and more time and research is needed to fully understand it.
Cryptocurrency – What It Is and What It’s Not
Cryptocurrency is a digital form of currency that functions as a medium of exchange and store of value. Although some cryptocurrencies can be used as a payment method, they are not considered as money because of their volatile value. Instead, they can be viewed as a commodity.
The ownership of certain tokens and coins, such as Ethereum, represents the ownership of a project and allows the holder to participate in governance activities, but it does not guarantee rights as equity would.
In some cases, cryptocurrencies serve as “digital gold”, as they have a limited supply and increasing difficulty in mining. They represent a form of scarcity, where the value comes from the difficulty in creating or obtaining it. The scarcity factor also affects the value of cryptocurrency and is a significant aspect in their development and usage within communities.
Thoughts on Cryptoeconomics
The network effect is a crucial factor in why established social networks and cryptocurrencies, like Facebook, Bitcoin, and TikTok, are hard to challenge by newcomers.
The value and utility of these platforms increase as more users join and benefit from the network, which creates a powerful network effect. This makes it difficult to create a new network of users that can compete with the existing services. The security and functioning of these networks is driven by the cryptoeconomics, which is an economy built around economic interests that are guaranteed by the tokenomics.
However, this focus on economic interests is influenced by Austrian neoliberalism, which can lead to unrealistic beliefs, overemphasis on economic benefits, increased social inequality, and even extremism. Some crypto projects are becoming increasingly centralized in pursuit of neoliberal economicism, despite claiming to be decentralized. Vitalik Buterin agrees that preventing collusion is crucial in blockchain and decentralization can help, but he is skeptical of moral arguments against neoliberalism.
The future is uncertain and relies on predictions and assumptions. Talking about it without taking action is not productive. Some people may have a positive or negative view about things that haven’t happened yet, but this is not useful. For example, cryptocurrency may not live up to its expectations or be more useful than the criticism it receives.
Defining the Metaverse
The metaverse is difficult to define as it is a concept that has not yet been fully developed. However, two main ideas exist about its potential.
Firstly, developers believe the metaverse will improve people’s satisfaction with technology by allowing for more interactive experiences beyond just looking and touching. The metaverse is not meant to replace the real world, but to provide a virtual space for work, play, and socializing.
Secondly, the metaverse is expected to aid in education and various industries by improving skills and experiences. Virtual reality and 3D technology will play a role in helping people learn and practice, making it more effective and enjoyable. The metaverse has the potential to raise the entertainment ceiling and provide a more progressive world where people don’t have to rely on paper or physically traveling to learn.
Lastly, the metaverse is predicted to become more realistic, breaking away from current virtual reality limitations. The virtual world as it currently exists is limited, as it is comprised of various databases controlled by different parties, restricting what users can do and see. The metaverse is being developed to overcome these limitations, becoming a more connected and unique virtual experience.
The Future of Blockchain and Cryptocurrency?
The future of blockchain, cryptocurrency, and related technologies is shaped by the beliefs and predictions of those who are developing them. Vitalik Buterin’s analogy of Skynet, a fictional computer system from Terminator that threatens humanity, highlights that the consequences of our actions and designs can be unpredictable in the long term. As the use of technology and the internet becomes more prevalent in people’s lives, the use of cryptocurrencies as an efficient means of payment is expected to increase. As digital activities become more prevalent, people will also have a greater sense of ownership, security, and privacy in the digital world.
The crypto world is diverse and expanding, and there are many different theories about its future. Some see the potential for revolutionary change and wealth for AI early adopters, while others warn of scams and digital scarcity. Different blockchain projects have their own visions and beliefs about the future of the crypto world, such as Ethereum’s vision of a global home for cryptocurrencies or Avalanche’s vision of an environmentally friendly, low-cost network.
Ultimately, the future of the crypto world depends on one’s own beliefs and predictions.
