Ethereum Creator Predicts Failure Of Facebook’s Metaverse Attempt

Even though the Metaverse concept is still in its infancy, the creator of Ethereum thinks that tech giants like Facebook would have a hard time laying its groundwork.

Vitalik Buterin, the Ethereum founder, said on Sunday about the future of the nascent sector. He assessed that enterprises seeking to construct the Metaverse are unlikely to be successful.

The ‘metaverse’ will occur, but current corporate attempts to construct the Metaverse are unlikely to succeed.

The 28-year-old programmer stated this in response to Dean Eigenmann’s assertion that while the ideas on the metaverse concept make logic, they wouldn’t be realised through Venture Capital funding. Previously, Eigenmann said that he would rather hang around in World of Warcraft than with most of this metaverse crap.

The Metaverse Concept is Still Vague

The concept and development of Augmented and Virtual Reality technology on the blockchain has dominated the Metaverse. However, the concept of the Metaverse remains ambiguous.

In common parlance, the Metaverse is recognised as a network of 3D virtual worlds where people can interact, do business, and socialise by using avatars or virtual versions of themselves.

Meta, Facebook’s parent company, was renamed in late 2021 as part of a transition to embrace the Metaverse. It’s the most famous corporate participant to express interest in the Metaverse.

Meta Won’t Make It, Says Ethereum Creator

Meta Won’t Make It, Says Vitalik Buterin. Image: Newsbt

Buterin publicly named Meta in his criticism of the firms making a foray into virtual space.

The Ethereum creator responded that Metaverse-focused enterprises would fail because “it’s way too early to determine what people want.”

The Metaverse: $5 Trillion By 2030

According to McKinsey & Co., the value of the Metaverse can reach $5 trillion by 2030. This shows the expected impact of the Metaverse on multiple industries and enterprises over time.

E-commerce is the main economic force creating the Metaverse, according to McKinsey’s preliminary prediction ($2.6 trillion), surpassing areas such as virtual learning ($270 billion), marketing ($206 billion), and gaming ($125 billion).

Mark Zuckerberg described the Metaverse as a “huge opportunity” for various reasons, claiming that developing platforms in the digital sphere will “unlock hundreds of billions, if not trillions of dollars over time.”

Huge Losses For Meta

On Thursday, the company announced that its Reality Labs segment, which focuses on the Metaverse, suffered quarterly losses of $2.81 billion. Consequently, the division’s year-to-date losses are a staggering $5.78 billion.

Ethereum is back in bullish momentum | Source: ETHUSD on TradingView

Perhaps, what Buterin is saying about Facebook’s attempt at creating a Metaverse – and “misfiring” – has a lot of weight.