According to a Bank of America analyst, the metaverse represents a massive opportunity for blockchain technology, and it will eventually cause cryptocurrencies to be broadly used for payments.
Haim Israel, Managing Director and Global Strategist at Bank of America, highlighted the metaverse as the mechanism that will drive the bitcoin sector into broad adoption provided certain criteria are met in a recent interview:
“I truly believe this is a massive opportunity… You’ll need the appropriate platforms… That will undoubtedly be a significant opportunity for the entire ecosystem.”
The metaverse, according to the Bank of America analyst, is where “we’re going to begin utilizing cryptocurrencies as currencies,” underlining that it is where “people will ultimately start utilizing cryptocurrencies for transactions.”
However, the director of research feels that present cryptocurrencies like Bitcoin, Ethereum and others are too volatile for this purpose and that stablecoins will eventually take over.
The phrase “metaverse” refers to a collection of online 3D virtual spaces where individuals can play games, make objects, interact, work, and even trade and earn cryptocurrency.
After Facebook announced in October that it will change its name to Meta to symbolize its commitment to developing its own platform, interest in the metaverse has risen. Big businesses and cryptocurrency entrepreneurs are competing to create digital worlds.
Decentraland, for example, is a popular platform that allows users to buy virtual plots of land, construct their own structures, and vote on the economy’s government.
As enthusiasts flock to digital homes and land as a speculative investment, a piece of real estate on Decentraland was sold for $2.4 million. On Tuesday, Republic Realm purchased a property in The Sandbox metaverse for $4.3 million.
According to Israel, the metaverse appears to be the place where individuals will finally start using cryptocurrencies for commerce.
Cryptocurrencies and blockchain technology, which supports some of the new virtual communities, are thought to go hand in hand. This prevents metaverses from becoming centralized under the authority of tech companies or payment suppliers.
Israel, on the other hand, believes that many digital currencies are far too volatile to be widely used for commerce. As a result, stablecoins, which are tethered to stable analogs like the US dollar, are likely to be used by metaverse developers.
Traditional payment businesses will be much more interested in cryptocurrencies, according to the Bank of America strategist, if they become widely used in the metaverse.
While the metaverse’s popularity has grown, many people remain suspicious. They point out that virtual worlds have existed for decades – for example, Second Life – and that virtual-reality headgear has never taken off.
Others doubt that cryptocurrencies will acquire widespread adoption, and believe that tech behemoths like Facebook will end up dominating whatever the metaverse becomes.
The Market Value of the Metaverse Could Approach $1 Trillion in the near Future.
Morgan Stanley, a multinational investment firm, recently declared the metaverse to be the next significant investing subject. Last week, Grayscale Investments published analysis indicating that the metaverse may be a $1 trillion business potential.