3 criticisms of the latest “blockchain revolution”

Key facts:
  • Metaverses are just another “blockchain fad”, with an expiration date.

  • Cryptocurrencies other than Bitcoin in general tend to decline over time.

Ever since Mark Zuckerberg announced his company name change (from Facebook to Meta) to enter the metaverse, that last word has spread rapidly throughout the cryptocurrency world.

It seems no one wants to be excluded from the “metaverse” (yes, in the singular, as if it were a unified cyberspace). Art galleries, virtual stores, casinos, markets, embassies, etc. move into this virtual space. The metaverse has suddenly become the great “blockchain revolution” that no one wants to be left out of.

But this metaverse is nothing new. For many years, these virtual universes have existed. There, humans interact socially and economically as avatars in a space considered to be a representation of a real or imaginary world.

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Introduction From cryptocurrencies, tokens and blockchain, metaverses have given their economy and some decentralization. And announcing the development of the meta metaverse gave them unprecedented public exposure.

“Metaverse” is an interesting word for someone familiar with Argentinian slang. In the South American country, the verse is considered a sweetened and spurious poetic deception. “Put the verse” to cause this deception. And “being dead is a verse” can be interpreted as “a constant lie”.

Here are 3 reasons why I think the supposed metaverse revolution is just a hair:

It doesn’t surprise me that a new trend is emerging in the cryptocurrency ecosystem, and at this point in history, it doesn’t excite me too much. Recent years have witnessed a long review of “revolutions”crypto» (In quotes, a lot of quotes).

The bitcoin killers, For example, they had their faces only to fall into oblivion. These altcoins have been promoted as being better than Bitcoin (BTC), with greater advantages (generally greater speed or scalability, although they have always come at the expense of decentralization and security). The period 2010-2015 witnessed the birth of many of these currencies.

Many altcoin promoters present their coins as being better than Bitcoin because they have certain properties
It seems superior, although they omit the details they don’t take advantage of. Source: BitNovo.

Then, since 2017, the public eager for news and strong sentiments can be entertained via ICOs, which stands for “initial coin offering.” Similar to Initial Public Offerings (IPO), which is the sale of company shares before they are listed on the stock market, ICOs sell cryptocurrencies or tokens before they are listed on exchanges.

Everything has to have a cryptocurrency or a token, even professions (eg dentacoin, the coin of dentists) or cities (eg, New York Coin). Most ICOs have been nothing more than Ethereum tokens with the promise of nothing more than a technological novelty.

The crypto winter that started in 2018 has brought some calm to the digital asset ecosystem, but it won’t last long. Just two years later, a trio of fads fueling the “crypto revolutions” were unleashed on consumers: decentralized finance (DeFi), non-fungible tokens (NFTs), and play-for-profit games.

This is how we come to the current fad, the metaverse. After witnessing the release of a dozen Bitcoin killers in a day; pre-sale of hundreds of ICOs; decentralized finance that would eliminate the need for banks; NFTs that would revolutionize property rights; And play-for-earning games that will change the way people make money globally… Why do I think metaverses are something different and a real technological revolution?

All of the above fashions had their birth, their climax – and most – their decline. Being newer, only the DeFi and NFT industry is still active, despite its diminishing momentum and in a gradual purification process guided by the market itself.

Maybe just the metaverses are as follows: Fad Like many others who smoke sellers benefit from making money from the buyers of delusions.

And like many cryptocurrency fads, metaverses are presented in a way that FOMO increases its presence in the unwary.

The Spanish newspaper “El Mundo” wrote on February 5 that “the last technological revolution is called Metaverse”. There they describe what the metaverse is: “An immersive 3D environment that will serve as a meeting point between the physical and virtual worlds so that users can interact through an avatar.” I mean, A mix between Facebook, Google Map view, and Doom that I played on my PC in 1997 Is this really the “latest technological revolution”?

2. Metaverses: What a waste of time!

“In a few years, you’ll be able to buy groceries in the Metaverse area,” tweet Gabriel. you are not alone. With titles like the ones above, how can you doubt that this will be the case?

Professionals from various fields also expect that no one will escape the “metaverse” revolution. “Very soon we will be able to attend online events and meetings with some kind of avatar,” writes Serge Ramo, a sales consultant and coach who seems like a serious man and inspires authority, in a LinkedIn post. Add this guy: “He can be customized, and he will have the power to move and connect the two worlds.”

Probably because I do not have the spirit of gaming, and therefore, the fact of moving the avatar on the computer screen does not cause an increase in endorphins. Far from being revolutionary, I see this “metapheric” future that many imagine or yearn for as unproductive, full of distractions, procrastination and childishness.

The future some imagine means that all day-to-day activity takes place within metaverses. Source: Javier / stock.adobe.com

The consultant quoted here does not think so. He asserts: “It is possible to have more immersive and productive meetings, merging the physical and digital worlds like never before (vegetal). This will allow for customer engagement with the direct sales force and the benefits of digital sales, all in one place and leverage the power of both environments together.”

Is it a matter of taste? If I have to make an online purchase in the supermarket, I prefer a list of needed products alphabetically or by type, with a photo, indicating their availability or non-availability. Moving in a virtual Carrefour through the aisles of gondolas, with my photo represented, would simply delay your shopping experience without any need.

And if I have to participate in a virtual business meeting, I want it to be as short and focused as possible. Spending life’s time creating how my avatar will look good in front of my interlocutors is far from my interests.

To control a virtual character, I prefer to play Super Mario. coincidence, The only use I can see in metaverses is the games. There yes, anything goes, no need to rush, it’s a relaxing moment. But revolutionary and applicable to any aspect of life? Pure verse number.

3. Metaverses are Chetcoins

These virtual worlds have their own economy and often have their own currencies. With the ease of launching new tokens on different blockchains, it has all released its own metaverse. Metatokens broke out in the market.

As reported by CriptoNoticias, the metaverse tokens were among the most coveted after 2021, along with memecoins (what would Hal Finney say on the day the freeze and all that happened after “Bitcoin turned on”?).

Is it wrong for that to happen? of course not! I raise the flag of the free market and defend the right of the Metaverses to launch any coin they want and the right of investors to buy a Radio Caca token (no, it’s not a joke) if they so desire. But the long-term future I see for these digital assets is constant depreciation.

With few exceptions, this has been the fate of altcoins and is likely to continue to do so in the future. Even if the cryptocurrency has an increase in the price of fiat money, if it is measured against a strong currency, such as Bitcoin, the devaluation of the currency will be observed unstoppably.

For example, the following chart shows the state of IOTA (MIOTA), the cryptocurrency that emerged in 2017 as the unit of account in the Internet of Things:

In the long run, most altcoins lose value when measured against bitcoin (in yellow), although its price in dollars (green) can fluctuate. Source: CoinMarketCap.

It makes sense for this to happen. As the economist Seif El-Din Amoos explains in his book The Bitcoin Pattern (Bitcoin Standard), “There is nothing original or difficult about copying Bitcoin’s design and producing a somewhat different imitation, something thousands of people have already done so far.”

The Argentine bitcoiner and lawyer Camilo Juragoría de Leon wrote – shortly before the emergence of metaversomania – Interesting article He showed 4 steps in what he calls “Blockchain Crypto Industry Scam Cycles”. Note the similarities with what happens in relation to metaverses:

In the first of these steps, the fraudsters declare that they have made a “theoretical invention or discovery” of a purported technology, product, service, or all together.

The second step, as Jorajuría de León explains, is that the technology is for sale “to unsuspecting users. This is always distributed through a token that uses cryptography.” He adds: “The declared technology aimed at solving the problem does not necessarily reach production, but the token that works. Always up to date. In cases where technology comes into production, it doesn’t solve the problem it was meant to solve.”

The third step, according to the lawyer, is that “scammers are selling the digital assets they have created” with virtually no cost or production cost. The price sometimes rises, providing a profit for the developers and – in the words of the author – “speculators who got into Ponzi before the rest.”

In step 4, the drop occurs. This is how the Jorajuría de Leon describes it:

“Later, after a while, there comes a time when it is inevitable that users will show that there was, in fact, no value generated by the product/technology/token. At this point and in the absence of a solution to any problem, there is a drop in the price of the asset.

Camilo Eurachoria de Leon, attorney.

I am committed to analyzing the bitcoin quoted here. Regarding metaverses, everything indicates that it falls somewhere between steps 2 and 3. It can take months or even years to move to the next step. But The history of shitcoins shows us that perhaps nothing will be able to prevent the fall of the “metatokens”.

The Bitcoin Revolution Doesn’t Need Metaverse

Having said all this and having established my position on the verse that is the metaverse, let me remind you that, unlike decentralized marketing products, Bitcoin is already driving a real revolution.

And the Bitcoin revolution does not need virtual worlds, because It is a revolution that lives on the streets of the real world.

This revolution is being led by those who protect their bitcoin savings from the devaluation of fiat money; Those who use it to donate money to a cause thus avoiding international barriers; Those who send remittances to their family members in another country without being subjected to commission theft from central companies; And those who use Satoshi Nakamoto’s coin for It deals outside the state eye which is scattered almost everywhere.

Such are the revolutions that interest me, with real benefits for real people. Without the need for avatars, without the need for virtual universes, without throwing a verse at us.


Disclaimer: The opinions and opinions expressed in this article belong to its author and do not necessarily reflect the views and opinions of CriptoNoticias.

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