Mana and Decentraland
Because the price of Mana has tripled since I wrote my first article, I thought it would be helpful to expand on the subject a little more. I have been following crypto currencies since 2013. This is why purchased some MANA out of interest for Decentraland. Just wanted to get that out of the way as a disclaimer.
I like the idea of Decentraland and MANA because the value of the MANA is tied to more than just block chain technology. The value in crypto currencies comes from the technology behind it. Bitcoin was the first to make this technology popular, and it will probably always be the leader in the crypto space.
Value in Mana
MANA will have value because it will be used within decentraland. The land you purchase in Decentraland will be bought with MANA. The land is finite, but the currency is on a continuous token model. From what I have read it looks like 8% will be generated the first year with a lower rate of creation after that.
The value your land has will depend on the value you bring to the community. If you are able to create a virtual casino within Decentraland then not only can you make MANA off the casino, but you can buy parcels of land around your casino to rent out. If it is widely known that thousands of visitors go to your parcel of land every day, then this will create value for all parcels adjacent to yours. This is why it will be a good idea to buy multiple parcels of land.
This is what gives the currency a value beyond the Ethereum block chain. With many projects floating around out there, it is difficult to tell which have value. Projects with value will have something else that brings it value outside of the technology that operates the currency itself.
What to do with the Land in Decentraland?
There are many things you can do with the land. The whitepaper lists things like Casinos, games and other things. Think about an online college where you attend the lecture without leaving your house.
A college buys a parcel of land, then they register students giving them a VR headset to attend class, and you attend the class within Decentraland. You would get the value of attending a lecture without having to pay for the buildings like a traditional college. This could expand access to higher education world wide.
What about a toastmasters type organization facilitated online? Through the VR headset people give speeches to help them practice their public speaking skills without needing to attend the meeting. This would benefit many people trying to improve their speech giving ability.
A church could set up here so that people could attend the church without needing to have a physical building. Imagine you go to church to hear your favorite pastor by putting on a headset. Many people who live in a smaller town with limited options will now have a number of churches to choose from.
A motivational speaker or Life Coach could run seminars through Decentraland. Companies could have job interviews through decentraland, and the possibilities are endless!
This won’t happen over night. The community will take time to build. This is why it was surprising to see MANA jump in value recently. I see the value long term once people begin to create interesting things. The success of this project will depend on the creativity of the users. Right now you can go in an see a basic idea of what the world will look like at www.decentraland.org/world, but this is before even the land auction has taken place. If you invest in MANA now you should be in it for the long term.
Communities are not formed over night, Reddit was not built in one day nor was any other great innovative idea that has ever come to fruition. Many people getting involved in Crypto are just looking to get rich. This is why I still believe Bitcoin is a massive bubble because it is not universally adoptable. We will not be able to go buy a hamburger at mcdonalds for Bitcoin because if it was that widely used, the system would be extremely slow.
Bitcoin is being used as a way to make money because people see others making money. They do not want to be left out. This is the madness of crowds. People can not tell you how Bitcoin works. Can they tell you what they can buy with it or where the value comes from? These same people are the ones going and buying Bitcoin because a friend told them they made $1,000 in a week on it.
When the Bitcoin bubble bursts, it will take the whole crypto space with it. MANA will be able to survive this if Decentraland is a robust and thriving community. MANA will have value within the community, so the price of MANA will not drop dramatically like Bitcoin will. Everyone is buying Bitcoin, but the buyers run out eventually when there is nothing to spend Bitcoin on.
This bursting of the bubble is a long way out because of the relatively low adoption rate as I explained in This Post. The futures contracts are just being created. There is nothing to fear if you are invested in Bitcoin, right now, so you are safe for a while.
I like Coin Payments as a way to accept crypto currency for my products and services. If you run a store or provide a service, check out this site as a way to get started accepting Crypto Currencies. These articles provide more insight on this subject as well:
These are the reasons I like MANA and Decentraland. I hope this gives insight into the crypto currency space for you. Please share this content with your social networks if they will find it valuable. Feel free to post any questions as well. So, let me know if you have any questions!
I accept donations of MANA to: 0x560b56542dd620284d86cc8687b9d172a18340f3
I purchased my MANA on binance.com