Bank of America strategist Haim Israel believes metaverse projects will create huge opportunities for blockchain technology. In addition, they will ensure that cryptocurrencies reach the mainstream once and for all and be used in financial transactions.
The statements in question were made by BOfA’s managing director of research in a recent interview with Insider.
However, he reasoned that existing cryptocurrencies such as BTC and ETH are too volatile to fit this role. In that sense, he believes metaverse developers are likely to resort to stable digital currencies (stablecoins) will prevail.
What is a metaverse?
Metaverse is a term referring to a variety of 3D virtual environments online in which people can play games, build things, socialize, work, and even trade and earn cryptoactives.
Interest in the metaverse soared after Facebook announced in October that it would change its name to Meta, to signal its commitment to building its own platform.
After that, a series of tokens linked to metaverse platforms soared in price. Furthermore, several digital lands in metaverses were sold at record prices.
According to Israel, the metaverse is where “we’re going to start using cryptocurrencies as coins.”
“I definitely believe this is a huge opportunity… You need the right platforms… this is definitely going to be a huge opportunity for this whole ecosystem,” Israel said.
The BofA strategist also predicted that traditional payments companies will be much more interested in cryptocurrencies if they become widely used in the metaverse.
“I see a lot of collaboration between the two,” he said.
Excitement with metaverse
Several major market players agree with Israel on the potential of metaverses.
Grayscale recently said that the projects represent a market opportunity of more than $1 trillion in annual revenue.
Likewise, Tim Sweeney, CEO of Epic Games, highlighted:
“In the coming decades, the metaverse will become a multi-trillion dollar part of the world economy. This metaverse will be far more comprehensive and powerful than anything else. If a central company gains control of this, they will become more powerful than any government and will be a god on Earth.”
Exaggeration about metaverse?
Although the excitement around the metaverse has increased, many people are more skeptical. They especially point out that virtual worlds have been around for decades. Others question whether cryptocurrencies will really gain widespread adoption:
“I’m not convinced that the metaverse will be user-owned or decentralized if it’s developed by Meta, Microsoft, Apple, etc. (which is where $10 billion is being spent to develop it!),” said Ben Gilbert, venture capital executive at PSL.
In the same vein, Raj Gokal, co-founder of the Solana network, said he was worried about the hype surrounding the metaverse:
“I’ve never seen so much hype in mainstream media about an unpublished product or product category, maybe ever.”