How to invest in the Metaverse, the market predicted to hit $1 trillion
Facebook’s announcement in October that it was officially changing its name to Meta Platforms (ticker: FB) and undergoing a siginficant rebranding was a milestone for the social media giant. It was also a turning point for the tech world, as the “next evolution of social connection”, aka the Metaverse, was announced.
The dawn of the Metaverse, a revolutionary concept that includes 3D spaces where you can “socialize, learn, collaborate, and play in ways that go beyond what we can imagine,” has inspired a new movement of virtual possibilities.
Experts predict that the market for the Metaverse may be worth over $1 trillion in annual revenue, set to compete with Web 2.0 companies worth ~$15 trillion in market value today.
Although we are facing a new age of technology, the concept of the Metaverse isn’t totally brand new. The term (the combination of meta and universe) was actually coined in 1992 in science fiction novel “Snow Crash”, to describe a virtual universe accessed by VR tech. The Metaverse, also called Web 3.0, started long before 2021. Before Web 3.0, there was Web 1.0, when webpages were one-way like Yahoo, and Web 2.0, where users have a more active role in their experience, with websites like YouTube and Facebook.
Facebook’s aim of the Metaverse is to provide an experience that is as immersive as possible, replacing reality with computerized simulations and virtual communities. Through the use of VR headsets and augmented reality glasses, users can meet, work, play, and even shop in an alternate reality.
It’s not just Facebook, though. Other companies jumping on the metaverse bandwagon include Chinese social media and gaming giant Tencent, which has reportedly entered the metaverse, as well as Roblox, which has also announced its plan to enter the space.
The Metaverse might be in its infancy still, but it is taking off at full speed, and investors are wanting to capitalize on the burgeoning new sector. So how exactly does one invest in the Metaverse?
One of the ways investors can invest in the metaverse is through virtual real estate. Platforms like The Sandbox and Decentraland are already selling digital real estate in the form of non-fungible tokens (NFTs), digital tokens, and blockchain networks. Those who purchase a these pieces of metaverse real estate are verified ownership through the transfer, after which the owner can rent, sell, or build their digital property.
Many marketplaces have created platforms where investors can buy and sell digital land and other collectibles as NFTs. Users simply need to create a crypto wallet. The purchase then needs to access the marketplace of his chosen metaverse platform and connect the wallet.
For example, Japanese video game maker Atari, who who has announced it’s launching its own virtual hotel complex in 2022. The company recently bought up 20 digital land in Decentraland, creating its very own crypto casino. Gamblers can use their ERC20-based Atari token to place bets and reap in rewards tax-free.
Metaverse projects on the blockchain are also powered by fungible tokens which can be used to purchase digital assets like virtual land or outfits for avatars. One example is Decentraland’s ($MANA) token, which powers its metaverse and is used as a medium to exchange. Another is Axie Infinity ($AXS), a governance token used to purchase digital goods and services. Then there’s Sandbox ($SAND), a utility, governance, and staking token which rewards investors who participate in its alpha user testing which owners can use it to purchase digital goods and services.
The dawn of the Metaverse is an exciting time for not only video-game enthusiasts and the general public but also investors who can capitalize on the market predicted to reach unprecedented heights. By investing in both virtual real estate and their related cryptocurrencies, investors can make the most of this new market.