While the term * metaverse * may sound new to many people, it’s actually been around for more than three decades. However, recently it has gained popularity due to the emergence of new projects.
Avid readers of popular books like * Snow Crash * by Neal Stephenson or movies like * Ready Player One * or The Matrix know that the Metaverse is not a new concept. It has been a topic in science fiction for decades. But soon the metaverse is mentioned not only in science fiction films and books. The Metaverse comes and aims to become real.
But what exactly is the Metaverse? What is it now and what will it look like in a few years? How can interested investors invest in the Metaverse?
In this guide, we discuss what the Metaverse is, and you can gain investment exposure to it.
Dive into the Metaverse
It is believed that the Metaverse is the next phase of the Internet, where virtual reality (VR), augmented reality (AR) and augmented reality (XR) merge with the real world.
In simpler terms, the metaverse can be considered a collection of virtual worlds that are interrelated, just as the World Wide Web is a nexus of connected websites.
The term * metaverse * is a combination of the prefix “meta”, which means beyond, and “verse”, as in the “universe”.
This Internet-native world can change the world from what it is today by creating a digital alternative reality where people will be able to “live”, work and play. It is expected to be the successor of the mobile Internet, much like Web 3.0 Is expected to become the successor of Web 2.0.
Today, games like Fortnite, Roblox, and Second Life bear the greatest resemblance to the Metaverse.
When it finally launches, the Metaverse will be much more than what it is today. Once fully developed, Metaverse will have three main aspects:
- Interoperability,
- Presence,
- And standardization.
People will be virtually present with others and will be able to move between virtual spaces using avatars and other digital objects. And instead of fiat currencies, people will likely use cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to make payments.
Metaverse is expected to transform virtually any industry and open up countless new business opportunities. As a result, it could also become an exciting area for investment.
How to invest in the Metaverse
If you are an avid investor, then know that it is never too late to be early. While much of what the Metaverse is is still vague, there are already opportunities for people to invest indirectly in the potential success of the Metaverse.
Bloomberg Intelligence recently estimated that the market size of the metaverum will reach USD 800 billion by 2024, suggesting that this could be a lucrative area for investment.
So let’s look at four ways you can add the Metaverse to your investment portfolio.
Metaverse Shares
One of the ways that investors interested in the Metaverse can invest in them is by buying “Metaverse shares”.”Metaverse shares are shares of listed companies involved in the development of the Metaverse.
Facebook (FB) is a good example of a company whose shares you can buy if you want to invest in the metaversum because it is at the forefront of building it. Mark Zuckerberg, CEO of Facebook, has even said that he does not want the company to be known as a social media company. Instead, he wants it to be known as a Metaverse company.
The social media giant already has an Oculus VR headset and recently launched its first smart glasses in collaboration with Ray-Ban to build on its augmented reality (AR). However, if Facebook is not where you want to invest, there are other companies that want to play a role in the growth of the metaverse, such as Microsoft, Unity Software, Roblox, Amazon, Walt Disney and Nvidia.
Metaverse Exchange Traded Funds (ETFs)
Alternatively, investors could gain exposure to the growing Metaverse industry by purchasing a Metaverse ETF. An exchange traded fund (ETF) is a basket of securities that are traded like a stock on an exchange.
A metaverse stock ETF allows people to invest in the companies that already happen to the Metaverse or are in a good position to do so in the future by buying into the fund.
The Roundhill Ball Metaverse ETF (META), for example, was created to allow anyone to invest in the Metaverse and reap the benefits. Roundhill Investment’s ETF offers investors exposure to companies such as Nvidia, Microsoft, Roblox, Tencent, Unity, and Amazon, among others.
Virtual World Tokens
Virtual World Tokens are digital tokens associated with the virtual reality industry. In the virtual world, users can use virtual world brands to buy land and collectibles in the game like avatars.
An example of a Virtual World token is the Metaverse Index (MVI) token, which provides holders with a range of tokens from crypto projects covering areas such as non-fungible tokens (NFTs), virtual worlds, and online gaming. In a sense, the Metaverse Index token acts like a Metaverse ETF for the crypto markets.
Another example is Decentraland’s token. Decentraland is a decentralized virtual reality platform that allows users to buy land, interact with each other and play games. It is the largest virtual world in the NFT space, and its virtual country is represented on the Ethereum blockchain as a non-fungible token known as a COUNTRY.
Decentraland uses two tokens: MANA and LAND. MANA is the platform’s native utility token used for transactions, while LAND is a non-fungible token that represents all plots on the platform.
Metaverse NFTs
Blockchain-based metaverses that are likely to use NFTs and cryptoassets will play a huge role in the development and adoption of the Metaverse. This is because a working metaverse needs to be able to allow users to seamlessly and instantly move their avatar and virtual assets from one world to another.
NFTs are digital assets that digitally represent a wide range of unique items such as art, in-game and collectible items. Platforms like Decentraland and the Sandbox have already allowed people to buy virtual land and even build their own environments with NFTs.
As we approach the reality of the metaversum, we can expect that there will be more investment opportunities in this space.