The Metaverse: What it is and How can we invest in it?
Introduction
As technology continues to progress at a rapid rate, the unimaginable becomes reality. The fantasies of every Science Fiction Movie are coming into our world. This is a step into the future.
The Metaverse is an ambitious project started by Meta Platforms(formerly Facebook). Although the details are still unclear, it is essentially a world of endless, interconnected virtual communities. All the “activities” in the Metaverse are still the same things people do on the internet today, it is just more interactive. This can all be done through virtual reality(VR) headsets, augmented reality glasses, smartphone apps, and other compatible devices.
The goal of this project is to make the online reality so realistic that it will be identical to real life. Users who enter the Metaverse can go shopping, take a trip online, see a concert, and even try on digital clothing. Users can be able to do all this through online “avatars” as they move through worlds of different companies.
Past Failures
Meta’s Lofty ambition requires great advancement in terms of VR. Although this technology has been around for a while, it has not achieved much success. Most VR introduced to the market come in the form of a headset for realistic gaming, however, most gamers are wary of it due to its cost and lack of compatibility with all the games of their choosing.
The company has seen losses with its technology as well. The company launched Oculus VR headsets along with a meeting software called Horizon Workrooms for realistic online workplaces. However, the costly price tag of 300 USD has caused it to receive bad reviews.
There are successful VR models out there, however, these models will need to become cheaper and more mainstream to establish the Metaverse in the first place.
Competition
Meta is not the only company that is investing in this. NVIDIA is planning to create its platform, the Omniverse, as another world to add to the overall virtual reality space. The company has stressed the importance of openness so users can transport between the worlds.
Epic Games, the company behind the renowned game Fortnite, has also raised 1 billion USD from investors to fund its long-term plans in the Metaverse. Given the fact that its games are already 3D and provide a surreal experience to gamers, it may become a giant in the Metaverse as well.
How you can invest
Despite all these potential challenges, the Metaverse still shows strong potential. According to an analysis by Bloomberg, it could become an 800-billion-dollar opportunity shortly. This is because of the revenue that companies receive through live and social advertisements. Gaming companies such as Roblox, Tencent, and Microsoft are easily able to integrate their 3D games into this new reality as well.
By investing in the companies that are leading in the Metaverse, as well as the Metaverse ETF(METV), investors can directly take advantage of the growth of this space. Cryptocurrency could also be considered as another way to indirectly invest in the growth of the virtual world. All investments are made at one’s own risk.
Sources
https://www.npr.org/2021/10/28/1050280500/what-metaverse-is-and-how-it-will-work
https://www.bloomberg.com/professional/blog/metaverse-may-be-800-billion-market-next-tech-platform/
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