Attention crypto-world friends: before entering the metaverse, lock in some earnings

In his monthly crypto column, Israeli serial entrepreneur Ariel Shapiro describes emerging technologies in the fields of cryptocurrencies, decentralized finance (DeFi) and blockchain, and their role in shaping the 21st century economy.

The impending Metaverse dominates the crypto headlines, with analysts racing almost obsessively to predict what innovations the new digital world will bring. Facebook's rebranding to Meta appears to be just the tip of the iceberg, with Microsoft and a number of other big tech companies announcing their plans to integrate into the Metaverse.

The hype surrounding the Metaverse is natural. While some might hate to admit it, there's no doubt that future humans will spend more time in VR headsets. But the key word here is "future" - most Metaverse development is building a digital world that the vast majority of humanity won't be using for many years to come. Saving energy and saving attention for the development of mainstream crypto/DeFi is very important, because they have changed economic incentives on a large scale.

Take Ripple (XRP), for example, which was sued by the U.S. Securities and Exchange Commission (SEC) for allegedly offering illegal securities through the sale of its cryptocurrency token, XRP. The company has come a long way in bringing the benefits of blockchain from the "we topple the banks" crowd to the "let's work with them" crowd. Ripple has gained the upper hand in the lawsuit recently, and many believe that the federal lawsuit means that the crypto industry's defeat is a certainty. Gone are the days. Thousands of miles south of the United States, bitcoin (BTC) has taken center stage in a city in El Salvador.

These two emblematic developments highlight the size of blockchain-based finance and its pace toward mass adoption, and it is worth examining them closely, as well as looking ahead to the success of other major blockchains. Just as many cryptocurrency investors lock in gains on a regular basis rather than holding them forever, so must the industry.

Ripple effect

The recent change in trend in the landmark SEC case against Ripple could add momentum to cryptocurrency adoption. Two years ago, the U.S. Securities and Exchange Commission (SEC) sued Ripple for “raising more than $1.3 billion in an unregistered, ongoing offering of digital asset securities.” The case has sparked panic over similar projects, as well as concerns among investors about the possible fallout from their investments. But the tables turned, and Ripple called it “a very big victory” when the judge rejected the SEC’s request to reconsider blocking key documents.

If Ripple can fend off the SEC lawsuit, the world's only superpower could take a more friendly stance towards cryptocurrencies, which would open the floodgates for cryptocurrency development. That doesn't necessarily mean that the most aggressive crypto purists will be emboldened. Ripple’s commitment to arming outdated banking and traditional financial infrastructure with blockchain-powered tools already in use by DeFi platforms may lend legitimacy to the idea of updating the centralized financial system, rather than replacing it with the libertarian DeFi dream .

This will have major economic implications for the future of the global economy, and analysts should at least take some time to consider NFTs.

Making DeFi More Accessible

While Ripple is making waves and Bored Apes are trending on Twitter, what about DeFi? The DeFi market is currently valued at $207 billion, compared to just over $104 billion on April 25, 2021. DeFi is actively opening up traditional investment opportunities to retail investors around the world. At a time when inflation is rising and housing prices around the world are becoming increasingly unaffordable, having access to investment opportunities for retail investors, that is, ordinary people, could be a lifesaver.

And this is exactly what critics of the crypto industry often ignore. Those who think of blockchain as a technology looking for use cases miss the development of companies like Levana that will actually introduce DeFi to crypto investors through games that teach them how to capitalize on a dystopian future of human-inhabited Mars s legend. This approach, known as gamification of investing, is spreading like wildfire, as is the industry as a whole. By 2026, the DeFi world is expected to explode by around 70%.

government cooperation

Countries from Germany to Singapore are pushing ahead with cryptocurrency regulation as Ripple makes progress in pushing the U.S. to further open up to cryptocurrencies. Of course, El Salvador also has a high-profile case, using bitcoin as legal tender as the best example of the country trying to innovate out of its financial crisis. Other countries are also taking steps to use blockchain to its advantage.

The Philippine government is actively working with a company called Oz Finance to provide economic opportunities through Special Economic Zones (Ecological Zones). The idea is to empower individuals and companies to operate virtually or physically in a tax-free, privacy-preserving, decentralized application (DApp) friendly zone powered by Oz’s utility token, TOTOz.

Blockchain is so intertwined with the lives of ordinary people that universities like Harvard and MIT offer blockchain courses, a sign that the crypto world is shifting towards the mainstream, even in academia.

While the blockchain industry is expanding, there are only so many resources that the blockchain industry as a whole can deploy at any given moment, especially with a global developer shortage. So before we enter the metaverse with the rest of the Degen (meaning "degenerate gambler", self-deprecating crypto people) put all this in perspective and focus on initiatives to improve the financial lives of ordinary people in this physical world.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.