Crypto What?By: Editor-in-chief Lenush Lebedeva
NF.. come again?? Oh, you mean crypto…what…?
A form of money that does not physically exist. But exists in digital form which in turn means that this is cyber money… a concept that initially was not taken too seriously and was basically a game of gamble for traders has now turned into a whole a decentralized financial system.
A currency that is used in the cyber-World which crypto buyers or crypto users refer to as metaverse. Now, on this market one can acquire commodities such as land, yachts, clothes, art, you can even buy a farm with animals, and you can buy produce to feed your animals. All of these are basically commodities which in the crypto industry are labelled as NFT’S – non fundable tokens which are basically files that exist in blockchains.
For 50 thousand dollars you can buy land in the metaverse which is the equivalent of a 100sqm in our world. But if in the real world you acquire actual land you can physically touch and walk on then in the metaverse it is basically just a file. In order to buy this, you need to have the equivalent of 50k in a crypto currency. If that does not sound crazy, then imagine buying land for the equivalent of 1000 dollars in a crypto currency that was later sold for the equivalent of 4.3 million dollars. But how do you convert this crypto currency into actual money?
You can exchange the crypto currency on the crypto market by creating a wallet in a company that trades on the crypto market who like a bank can exchange your crypto currency into real life money such as euros after which you can withdraw it from the crypto trading company into your bank account.
To put this into perspective a person who becomes a millionaire in the metaverse is worth that amount in the real world. Moreover, real life banks are now accepting crypto currencies. An unnamed bank in Switzerland will accept you depositing a crypto currency and exchanging it for swiss francs with the current market exchange rate.
If you want to feel sick my friends… someone bought a token for 8 thousand dollars and sold it for the equivalent of 5.7 billion dollars, which makes this guy a billionaire. Some would say that this is fake money but look at the stock market an investor can be worth hundreds of millions based on the shares he owns on the stock market in other words assets, but it doesn’t mean he’s got it lying around in cash. The crypto market is somewhat the same concept – if ever this hypothetical crypto billionaire decides to exchange any amount of their crypto currency into real life cash, they can do so based on the current rate through the companies that trade on the crypto market as previously mentioned and deposit the X amount into their bank accounts. Just like any trader on the stock market can sell his stock based on what it is worth at that moment.
The main hype at the moments are NFT’S. We have established that NFT’s are a commodity which are worth something on the market even though they are basically non-existent. They are bought for actual money, but it only exists in the crypto industry – as Dennis explained in the ‘Crypto-what’s? What are NFT’S AND cryptos’ video on LifestylepopTV.
It all seems relatively harmless but what is the correlation with the real world?
The connection is fast increasing by real life companies collaborating with the crypto market companies which create NFT’s. this work in the following ways:
A good example is an NFT called faceless which can be used as an entry pass for New York fashion week 2022. The brand that faceless is collaborating with is showcasing the pieces portrayed on it and the owner of the NFT can claim those pieces for free.
This is similar to promotional vouchers – you buy a product, you get 2 free drinks at a reputable venue and of course depending on the quality of the product you have different vouchers. Basically, an acceptable form of manipulation to sell a product. By giving away a piece for free the brand is advertising the given NFT and company selling it. In reality this is just a form of marketing which is the most common way NFT’s, and the crypto market are associated with our daily life in our ‘normal’ universe.
Another genius correlation and form of interaction with NFT’S is the most popular brand endorsement.
Parties around the world which you can only have access to if you own a particular NFT.
For example, the use of celebrity influence to buy NFT’S. So, a given celebrity can throw an event or party and in order to get into this party one must have an NFT, but not just any NFT, it must be the one created by the company or artist that they are cooperating with. Basic marketing if you ask me, but at least this is understandable instead of buying concert or event tickets with money you need to create a wallet on the crypto market, purchase an NFT and use it as your access pass. But as opposed to a regular ticket which you would later throw away an NFT can be resold later, and you can even make money on it. Sounds like a sweet deal if it’s a real-life event like the New York fashion week.
This has already been done by Snoop Dogg and Justin Bieber.
Justin Bieber had an entire concert in the metaverse which was livestreamed, but space was only sold for NFTS.
And Snoop Dogg hosted a party in his crib. Now your avatar can join this party and party with snoop doggy dog like its 2003.
The collaboration with celebrities is nothing new, however, as I wrote earlier it is basic marketing – a company creates a product and pays a celebrity to endorse the product the same way a company creates an NFT and pays a celebrity to endorse the NFT.
What are we left with? How does this affect our society?
We have a lot underaged millionaires. Which leads to a lack of control not to mention that these underaged millionaires can also work and buy property and other assets, should they accept crypto currency.
Financial scams that are undetectable on the crypto market. In 2021 alone there were scams worth 14.5 billion dollars on the crypto market.
And of course, illegal activities have been given a leeway. Once the real-world bank compliance has tightened its reigns the financial cyber crypto pyramid has come to help with:
And other black money.
This decentralized financial system is quickly taking over the World and is a fast-growing market.
This reminds me of a video game where you have an avatar and must run around buying land, feeding animals, start a business, and other activities while collecting tokens. Except this is with real money and you can cash out as you can do with the stock market. You can quite literally create anything you want on the crypto market including cyber versions of real-life businesses and sell whatever commodity in real life to real people (via their avatars or directly) who can later claim whatever product they bought offline.
For example, H&M opened a store in the metaverse where you can literally buy clothes either for your avatar or you real life self and claim it at your local H&M store. In fact, anyone can do it, if you have enough money in your crypto wallet to buy the land for your business you can set it up in the metaverse and sell it for any amount you want. As a result of a successful sale the value of your business will be directly affected in the real World.
Is the new financial market going to take over the current financial system? Or will it be a parallel financial system? Or will the crypto market collapse faster than it emerged and everyone who has invested large sums of money into it will lose all their cyber billions? This is a question most likely nobody will be able to answer or give more than a genuine opinion on. But anyone not involved in black money and corruption would likely want to believe that the system will be centralized and become part of our daily life which is next to impossible considering the whole World must accept the possibility of the crypto market otherwise international trade will cease to exist.
If you remember once upon a time the arrival the internet posed a similar issue for the mass media industry. The arrival of the iPhone being considered the quantum leap forward created many online journalists who quite literally could publish anything they liked whether it came from a reputable source or not on top of which misinformed masses based on one person’s opinion, or one could film a HD movie on their phone, stream blockbusters and of course download any song they wanted – none of it was controlled and piracy was a big thing. Kind of like the crypto finance world now. Eventually a way was found to centralize the system and control and verify the content and regulate the way the internet was used for mass media messages. Will this happen in the crypto market? Yes, or no? Comment on our YouTube channel LifestylepopTV.
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