Tech companies gamble on a virtual future in the metaverse
People buy virtual goods from non-owners in the virtual world. The worth of money has always rested on what people think it is, thus this is far-fetched.
This is a global trend. When Facebook rebranded as Meta, virtual world economies gained attention.
What is the popular metaverse?
It’s a collection of interoperable shared virtual worlds where people can take digital assets and a new digital identity.
Blockchain transfers the original, not a duplicate, of digital assets, making virtual reality more real.
Non-fungible tokens cannot be easily traded, unlike fungible money. Virtual world retailers supply copy-protected assets. As long as this is possible, buyers and sellers will meet.
Some regard the metaverse as the next significant innovation after the PC, Internet, and mobile phone eras.
Real economy can establish a metaverse using money and property tokens. In this metaverse, where tokens of all kinds are freely bought and traded in transparent marketplaces, supply and demand can work under digital identities.
NFTs have enabled illicit behavior. HM Revenue and Customs seized three non-fungible tokens in February in a VAT fraud probe involving 250 bogus entities. Three people were arrested by HMRC for allegedly trying to steal £1.4m. The tax agency said the suspects in its fraud case utilized “advanced tactics” to mask their identity, including bogus addresses, prepaid unregistered mobile phones, virtual private networks, and false invoices.
Mark Zuckerberg, CEO of Meta, faces market realities. The software giant’s stock worth fell $230bn on Feb. 3, a record daily loss for a US corporation. After quarterly results underwhelmed, shares plunged 26.4%. Facebook’s daily active users declined for the first time in its 18-year history, but the digital behemoth confronts many difficulties.
Apple introduced app tracking transparency last April. It enables users choose whether to be tracked by organizations like Meta, who can sell that information to advertising. The company generates much of its money by collecting user data and selling it to advertisers.
The tech giant’s name has been modified to reflect a new notion, the metaverse, which doesn’t yet exist. Many are dubious of a bold new future that borders on science fiction.