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January 26, 2022

What is The Metaverse?

As you try to become more familiar with the direction this online world we call the internet is heading in, you may stumble upon a term deemed, “The Metaverse”. This is essentially a virtual world that allows you to freely move around and interact with it, generally through the use of VR/AR technology. As one of the top movers of the Web3 phenomenon, it is certainly something to look out for. Even if you see yourself past the age of having fun and moving around inside of these virtual worlds, they will certainly be shaping our technological future, not only for entertainment but for commerce. In fact, Forbes.com states that this is a $1 trillion revenue opportunity.

Examples of the Metaverse

A “metaverse” is basically a 3D virtual world that you can actively participate in, in a number of ways. This new idea isn’t so easy to wrap our heads around though. Merriam Webster attempted to explain this concept by taking a quote from Ian Bremmer, “the metaverse [is] a place where augmented and virtual reality, next-generation data networks, and decentralized financing and payment systems contribute to a more realistic and immersive digital world where people can socialize, work, and trade digital goods.”

The term is thrown around loosely, and with no major front-runners having fully fleshed out products yet, it’s hard for newcomers to understand exactly what we’re talking about. But as with many other topics, this term’s youth is exactly what makes it hard to understand. The metaverse is coined by so many different examples it can be hard to specify. Assume that with such a broad definition, the term takes some pretty broad strokes as well. Some major pop culture examples would include: “Ready Player One”, where our main characters participate in a virtual reality game that has real-life implications. The video game Fortnite has begun hosting lengthy concerts within their virtual world as well, where you can use your avatar to act as a concertgoer as you watch the artist’s hologram perform in-game. You could even look at Pokémon Go as a rendition of this phenomenon as well, as it hosts a virtual world you move around freely in while you participate in its game mechanics. If you want to check out one of the web3 projects that is moving along nicely, you could take a look at The Sandbox.

Why should I care about the Metaverse?

As the digital world is continually evolving, and our ability to interact and utilize software to enhance our daily lives continues to grow, these advancements should be on the forefront of people’s minds. Even if you don’t see yourself running around fighting monsters or socializing through your computer screen, there are plenty of key ways to make sure you don’t get left behind. As with many other cryptocurrency projects, these worlds will be governed by and utilize their own tokens for most in-game functions. This means if you find a project that you like you are able to go to one of the many useful exchanges and purchase yourself tokens to be an early investor.

Web 3.0 Tokens

This new virtual reality is fully equipped with unique user experiences, commercial possibilities, and countless other ways to become fully integrated with our daily lives. To take part in this exciting new reality, it is a must to pick up some tokens of popular, or less common projects that you believe in. These could include The Sandbox, Decentraland, Axie Infinity, or many others. With the rise and fall of projects, don’t let the excitement overshadow your decision making though. “In Nov 2021, 68% of adults in the US were not interested in Meta’s project metaverse.” (Morning Consult) Though most of this concern will come from the fact this generation is still grasping on to exactly what it is, it is imperative to understand that most projects will fail, and there are so many to come in the future. It can be hard to tell how exactly the use-case and adoption of the metaverse will shift as time comes. All we can do for now is try to understand what it is, where it is currently heading, and how we choose to be a part of it.

The Metaverse and Crypto Taxes

If you do decide to jump into this brand new world, and maybe even pick yourself up some tokens, you need to make sure that you have the proper tools on hand to help you manage your financial accounting needs. One of the best solutions for you will be Ledgible.

With Ledgible, you can report and keep track of your crypto transactions with the supported integrations as you dive into the crypto space with this new information. If you want to learn more about Ledgible and get started for free, click here.

Disclaimer: The author and Ledgible do not provide investment advice and nothing in this article is meant to be taken as such. This website is presented solely for informational and entertainment purposes and is not to be construed as a recommendation, solicitation, or an offer to buy or sell / long or short any securities, commodities, cryptocurrencies, or any related financial instruments.

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