Could crypto shape the future of the metaverse?

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As investors and interested gamers all flock to the Metaverse, crypto enthusiast Chris MacDonald and The Motley Fool’s Eric Bleeker discuss how crypto games, such as Decentraland (CRYPTO: MANA), and even an opportunity in the traditional actions, can reshape the way we think. about the metaverse of this episode of “The Crypto Show” from Backstage Pass, recorded on November 10th.

Eric Bleeker: It’s a chart for Decentraland.

As I mentioned earlier, narratives matter, especially in the space where people are looking to embark on projects before many of these network effects begin. What happened is just that if you look at that huge spike, you can’t miss it with all of this volume associated with it – well, Decentraland is an idea for bringing metaverse concepts into the crypto space.

Chris, when you see something like this furious rise in Decentraland, how would you feel about it? Because a lot of people are seeing a lot of this attention on the metaverse after Facebook [now Meta Platforms] (NASDAQ: FB) was rebranded to be a metaverse company as something that’s really going to be a driver for cryptocurrencies over the next 5-10 years.

Chris MacDonald: Yeah, there has certainly been this big change with Facebook that has taken that big step. I think we’re seeing a lot of – whether it’s metaverse options or various gaming options in the crypto space.

For me, I think about it as I would an NFT argument as to why you would want to own an NFT. You own a digital asset, or the ability to own digital land, or a place in a crypto game. Let’s say you can own avatars, you have a piece of the digital world, whatever digital world you choose to be in. There is a lot of interest and momentum in this space.

To be honest, this is a subject that I am still learning. There are so many different options, we talked a bit about Alien Worlds (CRYPTO: TLM) and Axie Infinity (CRYPTO: AXS) on a recent show. The growth in this space is simply amazing.

I think this is the one I know that I will continue to research and study a little more. Decentraland is certainly a compelling program that is in full swing. The graph you just showed is quite impressive. I didn’t see that ladder on it, Eric, when was–?

Bleeker: Yeah, I had to cut, stupid formatting. I believe so it starts at 78 cents and it was heading towards November. This run was around the Facebook announcement, so it fell below the $ 1.80 range. It went over $ 3.50. Right now it is trading roughly north of $ 2.50. [laughs].

MacDonald: Yeah.

Bleeker: Incredible gains for a short period of time. You can also see it in the storage space.

Unity (NYSE: U) last night they actually released earnings that initially disappointed on a numerical basis, but I think they were down and now they’ve jumped and they’re up about seven percent . Part of this publication of the results was that they were actually buying Peter Jackson’s old studio, what is it? This is the Weta studios [Weta Workshop], I believe.

You just see excitement across the space. I own Nvidia, Nvidia (NASDAQ: NVDA) has been one of my major holdings for a long time. The types of earnings – it’s a $ 700 billion stock and we’re seeing 20 percent. One day it was until 20 [laughs] percent noon, I think it closed at 12, then at four.

Again, these stories are important and people are trying to get ahead of the big trends that are going to define the next decade because we have seen the gains that have been made, pulling them from the tech trends of the last decade.

It’s definitely an interesting space and I think at Motley Fool we want to review and help investors win in a number of ways. For cryptocurrencies, we see this as part of a complete investment strategy. I really think the metaverse and the fact that it’s digital first and cryptocurrencies are digital first, there is some overlap there and there will be some benefits.

I think if you are an investor looking to target this opportunity, I would definitely look at some of the ideas like Unity first. I own Unity, it’s a company that has stagnated for much of this year, in part because the year-over-year growth rates weren’t as good for investors looking for a lot of stocks. Competitive SaaS with higher rates. But we’re seeing a lot of momentum moving into space, people are taking this longer term perspective on where Unity is and where it’s going to be for a leading metaverse company. I think it’s really interesting.

I think that’s something that we, like you said Chris, will continue to cover. I don’t know, do we have a metaverse show? We might even have one at this point on Fool Live, [laughs] I do not know. We definitely have a video game show.

I should note. For people who are joining Digital Explorers and this might be your first show, “The Crypto Show” is a block of our lineup on Backstage Pass, but we have a lot of lineup so if you’re interested we ‘J’ did an AI show, we have a video game show. You should definitely check the calendar as we are just one humble show among many.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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