Understanding Crypto as a Metaverse Real Estate
Vivek Gupta
Serial Entrepreneur & Scientist SoftSensor.ai / LMDMax Corp/ PRR.ai/ Essex Lake Group| DATAIQ 100 2024 USA| AI 100 India
My experience in banking and payment industry always made me wonder on crypto valuations. I always questioned but could never find a logical framework to evaluate crypto and its value. A dollar physical bill remains a dollar in its digital form in a bank. It does not increase in value but rather diminish because of the transaction cost associated with the payment networks in enabling it. The same dollar when translated in crypto space, delinks itself from the original value and floats with a completely new valuation in cyber space.
When I asked this question to few young analysts who I met in my recent India trip, I received an answer that there is cost to mining the crypto # and hence it has a value. It for the first time made me understand Crypto in its simplistic form.
A thought triggered and now I reimagined Crypto as a real estate # Plot in metaverse. It is just an address which is in auction on a continuous basis, and different crypto chains are nothing but different builders selling this digital but uniquely identifiable space, an immutable address in the cyber space.
领英推荐
Everyone engaged in crypto purchase and sell is basically trading those addresses which may have some value in future. Real estate value is driven by multiple factors and its potential usage as a commercial or residential use. I need to understand if the crypto address in future will have a similar differential use attached to it.
What will be those factors in the crypto cyber space in future? Why owning the Hash-Plots (cryptos) from different builders like Bitcoin or Ethereum will have a unique and differential value. It is an open question for me, but at least this encounter has given me a framework to simplify Cryptos and compare it to the physical world valuation models.
Virtual Assistant | Top Rated Plus Freelancer on Upwork | LinkedIn Growth Hacker | Digital Marketing Expert | Salesforce CRM Management
1 年Vivek, thanks for sharing!
Serial Entrepreneur & Scientist SoftSensor.ai / LMDMax Corp/ PRR.ai/ Essex Lake Group| DATAIQ 100 2024 USA| AI 100 India
1 年Jayesh. Interesting point. There is no doubts on some fundamental properties of block chain as a digital infra. But what I am discussing is a framework to look at the current crypto market. In my view crypto is not a currency. Currency by design should have a translatable value. A dollar crypto cannot fluctuate in relation to dollar itself. So fundamentally, we need to delink crypto from the currency or coin term and look at it as a marketable # real estate. If we demystify crypto for general public, will general public participate in auctions for digital hash real estate. The regulators need to differentiate between digital coin equivalent of a currency from digital real estate and let public choose.
Advanced Analytics Leader | Trusted Strategy Advisor | Financial Services Consultant
1 年Great thoughts Vivek! I think the key here is "Acceptance".. The global regulated currency system today is trust based - acceptance is underwritten by central banks. As acceptance for private digital currencies increases, their value against existing regular currencies will increase as well (typical demand - supply related). Given the number of Cryptos emerging, I am pretty sure there would be consolidation and failures as well. Regular currencies (Regulators/Central Banks) will also fight back. In my view we will land in an Equilibrium state in the next decade with all forms co-existing, just my personal opinion!