Metaverse, a vast network of digital spaces, is expected to add at least $40 billion to Sub-Saharan Africa’s Gross Domestic Product (GDP) over the next ten years.
This is according to a research titled “The potential global economic impact of the Metaverse” by the Analysis Group (AG).
According to the research, which was commissioned by Meta (Facebook), the metaverse has the potential to add $3 trillion to the global economy in a decade, assuming adoption and growth are comparable to mobile technology.
But what exactly is the Metaverse, and how would it contribute to the economy? In this blog, I will try to explain just that.
What is the metaverse?
You might have heard the term “metaverse” before, but what is it? The metaverse is a virtual world that can be accessed through computers. It’s like reality, but instead of being made up of physical things, the entire world exists inside a computer.
The metaverse has been around since the beginning of computers themselves. Today, there are dozens of different places where people can go and interact with each other inside their avatars (which look like human characters). These avatars allow users to do everything from travel around space together or play video games together! Some people even create their own worlds for others to explore!
What are some examples of the metaverse today?
Virtual reality (VR), augmented reality (AR), mixed reality (MR), and the extended reality (XR) space are all names for a growing number of technologies designed to create immersive experiences by placing users in a virtual environment. To understand how these technologies are affecting economies, let’s take a look at some examples of XR today:
Minecraft is an example of virtual world technology that provides its players with a customizable experience while they interact with one another in front of their screens.
Second Life is an online platform where users can create avatars and live out their fantasies by interacting with other avatars in a 3D space.
Holograms—which can be created using AR technology—have been used for years at concerts and sporting events, such as the Super Bowl halftime show featuring Tupac Shakur, but recently they’ve also made their way into retail stores as exhibits.
What currency will be used in the metaverse?
The metaverse will be a world where you can purchase goods and services with money, but it is also likely that several new currencies will arise in this environment. The current state of affairs is that there are several different cryptocurrencies available on the market. However, most people use Bitcoin as the primary cryptocurrency because it has been around for years and has been proven to work.
Will there be other currencies? Yes, undoubtedly so. How these different types of currencies will be regulated or taxed is an open question though: bitcoin got its start as an anonymous currency without any government intervention or oversight; if this type of system becomes popular again in virtual worlds then how do we protect ourselves against fraud? That is a question for another time.
How will taxes work in the metaverse?
Although the metaverse is a virtual world, it does not exist in any physical location. Therefore, it is unlikely for users operating and earning within this space to be required to pay taxes in the countries where they operate based on the activities within the metaverse.
The metaverse is more akin to an online marketplace where users can spend time and interact with each other than in an actual country that people would want to live in like Second Life.
Companies will however most likely be required to pay taxes on the profits accrued from operating in whatever country they find themselves. This could mean money made from sales or fees in the metaverse. So yeah, you can’t dodge taxes (sorry).
How can governments tax sales made inside a virtual world if the company creating it is based in a different country?
The short answer is that they can’t. At least not yet.
It’s important to understand that the virtual world will not exist in a vacuum; it’ll exist alongside our real one, so governments will need to address how the metaverse is taxed just like any other business or industry.
If a company operates in the United States and sells products from inside its virtual world, then it needs to pay taxes on those earnings in the U.S., just as any online retailer would if they were selling from their website.
With that being said, there are some gray areas regarding how these taxes are collected and what kinds of protections exist for users who buy digital items (think: virtual currency) through companies based in other countries—and this may be where things get complicated for everyone involved!
What exactly are the benefits of having an online economy separate from our real-world economy?
Having a metaverse economy separate from the real world economy has some pretty important benefits.
People will be able to monetize their skills and creativity in ways that are impossible for them now. The reason for this is that in the metaverse, there will be no physical limitations on what you can create or do. You’ll be able to build anything from scratch and use it however you want: play with it, sell it, give it away for free, whatever. It’ll all be up to you!
People will also have access to micro-tasks (small tasks that add up over time), which means they can make money doing things like spreading information about companies through social media or writing articles based on trending topics at any given moment in time. This is another form of monetizing content creation but specifically applies only when someone is creating something new as opposed to just sharing old content online.
How is the metaverse regulated?
The Metaverse is a new technology, so it’s not yet clear how it will be regulated. This means that there are no specific laws or regulations for the metaverse yet. At this stage, countries around the world are deciding what to do about the metaverse and how to control it in their jurisdictions.
The metaverse is a global technology that allows people from around the world to connect regardless of where they live or work. It also allows you access to services and content created by other people all over the planet without having to leave your house! This means that if you live in one country but have friends who live in another country, you can still communicate with each other through avatars (digital representations) of yourselves inside virtual worlds like Second Life or Sansar
(a platform created by Linden Lab).
Could countries or regions ban their citizens or companies from the metaverse?
In theory, a country or region could try to ban its citizens from using the metaverse. However, it would be difficult to enforce such a ban. If people in one country were prohibited from accessing the metaverse, they would still have access through other countries that aren’t enforcing their bans.
Additionally, it is unclear how effective such bans would be at stopping people from accessing worlds outside of their borders. For example, if some countries tried to impose online censorship on their citizens by blocking access to websites that weren’t approved by government officials (like Wikipedia), those who wanted unfiltered information simply had to leave their homes and enter another country’s jurisdiction where they could access uncensored content without fear of punishment for doing so, and they can achieve this through a VPN.
Will there be enough reliable internet for everyone to have a good experience in the metaverse?
The metaverse will be a global network of virtual worlds, where you will be able to meet friends and interact with people from all over the world. The internet is a global network that connects devices around the world, so it’s easy to think that there will be enough reliable internet for everyone to have a good experience in the metaverse.
The first thing that you need to know about this question is that when we talk about “the Internet”, we’re usually referring to all of its networks (including wired Internet, cellular networks, and satellite systems) as well as all of their users who are connected through them. One important thing about these networks is how fast they are getting: between 2010 and 2019 alone, average connection speeds jumped from 2 Mbps (measured in megabits per second) up to 50 Mbps or even higher. This increase means better access for more people than ever before!
Internet companies are also stepping up to provide wider connectivity and reach. If the dream ever becomes a reality, companies like Starlink by Elon Musk and Project Kuiper by Amazon’s Jeff Bezos will ultimately play a big role in metaverse access.
The metaverse is going to impact society and economies in ways we haven’t yet imagined.
The metaverse is a new economy that has the potential to impact society and economies in ways we haven’t yet imagined. The metaverse is already changing how people work and play, but it’s about to get even more interesting.
There are two things you should know about the metaverse: First, it’s going to make a lot of money for a lot of people with the right skills; second, it’s not just virtual reality (VR). VR is only one part of the metaverse; augmented reality (AR) and mixed reality (MR) will also be important parts of this virtual world economy.
Conclusion
Now that you know what the metaverse is, and how it can impact your life, it’s time to start thinking about how you can prepare for the inevitable changes that it may bring. With so many possibilities on the horizon, it’s difficult to say exactly how this new reality will look. However, one thing is certain: there will be winners and losers in every aspect of society.
The world has already begun creating entire digital cities with social networks and marketplaces—all designed specifically for virtual reality. You can use these digital spaces as a way of learning about the environment before jumping into an immersive experience like Second Life or High Fidelity. More time spent in these simulations means greater familiarity with both technology and its potential benefits (and pitfalls).
As with everything, the best thing to do is to keep yourself well informed. Bookmarking our page and regularly checking our content is the first step. Thanks for reading.
source https://www.jbklutse.com/metaverse-projected-to-contribute-40-billion-gdp-sub-saharan-africa/
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