Coinbase founder, Brian Armstrong is now looking at the potential of virtual currency in virtual reality. In his latest blog, entitled “Digital Currency Could Be Widely Used in VR”, Armstrong began writing about his hypothesis, believing “Digital Currency Will Have More Hype in Virtual Reality”.
Virtual Reality and Virtual Currency?
Virtual reality is a way of experiencing the computer-generated environment using VR devices such as Oculus Rift, Google Cardboard, HTC Vive and other. VR is on mainstream, targeting $26.89 billion revenue by 2022. According to the Armstrong, transactions in the virtual world occurred using various currencies. The idea of using Digital currencies in the digital word would enable people to spend more time in the virtual world.
He referred to books like Ready Player One or Cryptonomicon, written on virtual reality which described the time people would be spending in the future. He said that;
Virtual worlds are 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.
His continued talk about second life economy described the possible things people can access the virtual world. He claimed this world will allow people to buy almost everything including vehicles, real estate, teleportation for instant travel and other entertainment stuff. Furthermore, he explained that there are firms like High Fidelity, Alt Space, and VR Chat which are presently building virtual worlds in VR today.
Using Decentralized Currency in Virtual World
His blog highlights the developers or the creator of the virtual world and how can they be benefited by using digital currency in the virtual world. According to him
• Developers can create their own centralized digital currency (He referred Linden Dollar in this regard)
• Existing cryptocurrencies like Ethereum and Bitcoin can be used
• Moreover, they can also create their own digital currency tokens
VR Games Are Getting Good
Though cryptocurrency in the virtual world can be a great concern in near future, the virtual games with digital currency can also be a popular business model. In the same regard, he said that;
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
Moreover, he describes that ‘it allows people to actually earn living in VR’ adding that,
They can convert their earnings to their local currency.
Talking about the banks in the virtual world, he said that we may experience ‘virtual bank buildings with pillars, virtual tellers with glasses and also the vaults that spin as you open them’. As long as a wallet to store the coins are concerned, he stated by giving an instance of Ready Player;
Perhaps the wallet where you keep your coins will have them pile up, or jostle around when you move.
He encouraged developers of virtual gaming App to use virtual currency within the App which enable customers to use such digital coins by converting them into traditional money so as to use it in real life. By doing so, we can effectively “bridge the gap with the real world” he said.
This will help take virtual reality from a hobby or entertainment to a full-time job or lifestyle. He concluded