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RE: Virtual Reality sets a trend for curing fears and phobias
I also love the idea of augmented reality. I haven't seen it for myself in real life, but I have been doig a lot of reading and it is helping doctors to train on augmented body parts to improve their skills in the operation theatre.
Both AR and VR are being used in such interesting ways. One of the coolest ways I've seen it used to help people is in reducing phantom limb pain - check it out.