[New Wave] Why the MZ Generation Is Enthusiastic About Metaverse and Cryptocurrency

[Asia Economy] The term ‘Metaverse’ first appeared in the 1992 science fiction novel Snow Crash. A compound of ‘meta,’ meaning beyond, and ‘universe,’ the ‘Metaverse’ refers to a universe beyond real life?that is, a virtual space created through computer technology in three dimensions, transcending the boundaries of everyday life.

Since Snow Crash, various attempts have been made by technologists to realize this concept, among which the most famous is ‘Second Life,’ where people can socialize with others in a virtual space, shop, buy houses, and even make a living. Launched in 2003, Second Life once achieved great success with over 8 million users worldwide.

The metaverse craze sparked by Second Life continued with the spread of non-face-to-face trends due to the COVID-19 pandemic, leading to the popularity of platforms such as Roblox, Zepeto, Decentraland, and The Sandbox. But why is the metaverse associated with cryptocurrencies, blockchain, and non-fungible tokens (NFTs)?

Just as Cyworld had its ‘Dotori’ currency, Roblox has ‘Robux,’ and Zepeto has its own currency called ‘Zem.’ However, unlike Cyworld, Roblox and Zepeto allow users to generate income through creative activities within the virtual world. In Roblox, users can create games themselves and earn Robux by letting others enjoy those games. Popular Zepeto has already attracted fashion brands like Gucci, Nike, Converse, Disney, and Pushbutton, whose clothing items can be purchased with Zepeto’s currency, Zem. Meanwhile, Decentraland and The Sandbox use blockchain-based cryptocurrencies familiar to us, such as Bitcoin and Ethereum.

Decentraland is a blockchain-based virtual real estate trading metaverse applying NFTs. Users can buy and sell ‘Land’?plots within the game?using cryptocurrency, host exhibitions or performances on their land, or post advertisements and collect the resulting revenue. Moreover, land ownership is recorded and stored as NFTs on the Ethereum blockchain, making it tamper-proof and enabling easier and safer transactions over the internet.

Whereas online games like Lineage in the past served merely as escapes from reality, the metaverse combined with cryptocurrency is seen as a refuge and an opportunity to generate wealth for the so-called ‘N-po generation’?the MZ generation (a compound of Millennials and Generation Z, born between 1981 and 2010)?who are accustomed to having no concept of lifelong employment, juggling multiple jobs, and dreaming of early retirement through economic freedom.

A vice president of a domestic bank once said, “If traditional banks do not understand the financial habits of the MZ generation, who invest like shopping and save like gaming, they will not survive.” It is time for our traditional companies to make efforts to get closer to the MZ generation.

Professor Seungjoo Kim, Department of Cyber Defense, Korea University