Virtual reality could save Bitcoin. That’s the opinion of the creator of the Coinbase application, according to whom cryptocurrencies will become the main currency of exchange within virtual worlds like Sansar and VR Chat.
Digital is a real asset:
Operating on the principle of a distributed ledger, Blockchain technology would present itself as a real resource to exploit for virtual reality.
Blockchain and crypto-currencies can be used as a means for users to invest beyond the limits imposed by physical transactions, as people’s daily lives are currently marked by the presence of virtual entities.
It’s no secret that Bitcoin is no longer on a roll. While its price had almost reached 20,000 dollars in December 2017, it fell throughout the year to finally tumble by 36% in November 2018. A decline that has been reflected in all cryptocurrencies like Ethereum or Ripple.
Virtual reality (VR)
In a few years, virtual reality (VR) has come a very long way and is trying to find a defining moment.
Virtual reality as a technology has come a long way since the release of the first Oculus Rift VR headset on March 28, 2016. It is now a very competitive business, yet valuable enough to maintain many ecosystems and product options. In a smart move, many devices are now highly compatible with software, which is great because content is the trick to a thriving new media hardware stage.
This content is now more readily available, including a set of exemplary mini-games from the legendary software house Valve (Steam market, DOTA 2, Portal 2) known as “The Lab,” which launched in April 2016. Since Valve is one of the co-creators of this HTC Vive VR headset, it’s no surprise that the sport seems to have been a huge success. More recent games like Epic Games’ Robo Recall (Unreal Engine, Gears of War, Fortnite), released in March 2017, have shown just how far the interactive hardware has come.
However, virtual reality could embody the salvation of cryptocurrencies. This is the opinion of Brian Armstrong, the founder and CEO of the famous mobile app Coinbase, which allows you to buy and sell Bitcoin and other “cryptocurrencies”.
In a blog post, the entrepreneur predicts that the use of cryptocurrencies will be boosted in the future by the emergence of “virtual worlds” in which users will use Bitcoin and the like to trade. Indeed, these virtual, universal currencies will be far more convenient than real-world currencies that are tied to specific regions.
VR Worlds and Cryptocurrency
VR worlds are set to multiply in the coming years and attract more and more people as the adoption of virtual reality by the general public grows. In fact, many companies and investors will be interested in these platforms and the ability to offer virtual services and goods on them.
In exchange for cryptocurrencies, users will be able to buy virtual experiences as well as goods for their avatars: clothes, accessories, housing, vehicle… it will also be possible to buy entertaining digital content such as episodes of series or songs directly from VR.
For their part, content creators will be able to get rich by exchanging cryptocurrencies earned in the virtual world for their local real-world currency. Some will earn enough money to make it their primary source of income, and thus spend even more time in virtual reality.
According to Armstrong, there are several options for virtual world developers. They can create their own centralized digital currency, like the Linden Dollar in Second Life. However, one can also rely on an existing decentralized cryptocurrency such as Bitcoin or Ethereum or create their own token based on the Blockchain of one of these currencies. In the long term, the CEO of Coinbase believes that real virtual banks could emerge.
The biggest obstacle to the massive use of Bitcoin in this area is its high volatility: while this makes it an ideal medium for speculation (which can be an advantage for some types of investors), it is also a significant risk for all companies that wish to invest in it in the long term.
In conclusion, Bitcoin and cryptocurrencies are destined to become the main currencies in virtual worlds. The more these VR worlds are frequented, the more cryptocurrencies will be used. Virtual reality could therefore become the main reason for the existence of virtual currencies…