The Metaverse Virtual Economy: A Comprehensive Overview

Abstract

The concept of the metaverse, where digital and physical realities merge, has garnered significant attention, particularly with advancements in virtual and augmented reality. This study scrutinizes the Metaverse Virtual Economy (MVE), an innovative convergence of real and virtual experiences. By synthesizing insights from prior research on the metaverse, the article explores transformational factors leading from the real world to the meta-universe, considering economic implications, both microeconomic and macroeconomic. Described as an expansive, closed-loop, perfectly competitive market, the MVE minimizes transaction costs and intermediaries. At a macroeconomic level, the MVE may foster sustainable economic growth; however, this growth might be uneven, reflecting the digital divide. As the integration of the metaverse into daily life continues, and the frictions between the two universes diminish, there arises a need to investigate the impact on economic policymaking including the potential applications of virtual currencies. The findings of his study suggest that the MVE poses both opportunities and challenges for businesses and consumers alike. It also emphasizes the necessity for careful exploration, regulation, and understanding of the complex dynamics to leverage the metaverse as a vital component of the future economy.