Cryptocurrency To Gain Massive Adoption In VR, Coinbase CEO Predicts
Innovations in cryptocurrency market will in the near future, challenge traditional banking and finance systems, and bring virtual reality to either change or oust the status quo in this area.
It will most likely do this by becoming the preferred currency in virtual reality. That is the hypothesis and thought of Brian Armstrong, founder of Coinbase in his new blog titled Digital Currency Could Be Widely Used in VR.
Armstrong’s optimistic proposal is predicated on the simple reason that a virtual reality world will soon emerge in which transactions will no longer be carried out on the principle of uni-currency.
In other words, when people trade in virtual worlds, it will no longer be fashionable- or perhaps even rude- to rely on or use the currency of one country. Digital currency at that material time will then become the currency that will be used in these virtual spaces.
Armstrong’s hypothesis further theorizes that many more companies and investors will stay on these virtual worlds to make easy cash and profit, with the digital currency creating huge incentive that will make them stay put with its adoption.
Between Virtual Reality And Virtual Currency
Virtual reality, according to Armstrong include “things like Second Life. VR is not required to have a virtual world (Second Life is an example here), but VR will likely accelerate the usage of virtual worlds dramatically.”
In simple terms, Virtual Reality involves experiencing the computer generated ecosystem with the use of VR devices such as Oculus Rift, Google Cardboard, HTC Vive, to mention a few. Besides, VR is likely going to go mainstream system, with projected revenue of about $27 billion by 2022.
The market system of the virtual world, as Armstrong conceives, will operate in such a way that nothing will be absent for purchase in the virtual world.
People will be able to buy all kinds of assets in virtual worlds, including services (songs, experiences), teleportation, fashion and clothing (for their avatars), real estate, and vehicles (cars, spaceships, etc.).
In fact, the adoption will involve sales and exchange of special abilities, with people having free access to events or clubs, and entertainment (new episodes, levels, songs, and experiences).
What will be more fascinating is the fact that each of these assets and services can stand as a unique digital token that their owners can truly own. In that sense, digital currency (cryptocurrency) becomes a means of exchange as well as an asset which can stand in the place of real money itself.
All of these transactions will be carried out using cryptocurrency, Armstrong, who made reference to a literature like Ready Player One or Cryptonomicon, written on virtual reality which described the time people would be spending in the future, insists.
Interestingly, Armstrong pointed in the direction of the great works underway which stress the impact of the virtual worlds. He enumerated that a number of firms are working hard on virtual world in virtual reality today. Some of the companies in this regard include High Fidelity, Alt Space, and VR Chat.
In his article posted on his blog, Armstrong highlights a handful of ways developers and creators of virtual worlds can benefit by the product of their creation, especially the adoption of a decentralized digital currency.
He also touched on the cons of this development, balancing the options the developers of these virtual worlds have. For Armstrong, developers could,
- Create a centralized digital currency, as indicated in the Second Life’s activities with the Linden Dollar
- Use an existing decentralized digital currency like Bitcoin or Ethereum
- Also issue their own token on any of the major coins
The implication of these options, for Armstrong is that participants, particularly content creators in these virtual worlds will be able to earn “real money.” Besides, people could also have a chance of paying their bills, including rent while earning and living in these worlds.
If that happens, in Armstrong’s thought, more people will be willing to come and stake games in the virtual world. Plus, that will naturally prompt gamers to spend more time in the virtual games, increasing their game time.
“More people will spend time in the game. Perhaps they will even earn a living in the virtual world that pays their rent in the real world. . If this happens, you could see people spend 8 to 12 hours per day,” Armstrong said.
A great deal of benefit for game app developers, Armstrong noted further. Using digital currency in virtual worlds is a good deal generally for app developer and content generators as they could commercialize their innovations.
More specifically, this becomes a serious popular business model in games world as using a digital currency would give room for a large number of people to earn an actual living in VR. By that, “they can convert their earnings to their local currency.”
The question which immediately stares Armstrong’s hypothesis in the face bothers on what the outlook of the virtual currency and virtual banks in VR will be. And he would say that there could be virtual bank structures with their pillars holding them.
Armstrong also theorizes that there perhaps will be virtual bank vaults that spin when opened, and virtual tellers with glasses. The hypothesis also refers to Reader Player which had already stated that:
“Perhaps the wallet where you keep your coins will have them pile up, or jostle around when you move.”
Armstrong concluded with these remarks which apparently encourage content creators and virtual game app developers to adopt the use of virtual currency within the app.
With that, customers can use such digital coins by converting them into traditional money so as to use it in real life. If that happens, it will blur the lines between the virtual and the real world, creating an interwoven and interconnected reality.
“This will help take virtual reality from a hobby or entertainment to a full-time job or lifestyle.” Said Armstrong.