Popular sci-fi writer Neal Stephenson coined “metaverse” with his 1992 breakthrough novel Snow Crash. This concept is now a reality. You can even invest in the metaverses.
The OASIS, another advanced virtual reality, is described in Ready Player One. Many other sci-fi authors have used similar concepts in their books, including Ian M Banks.
In September, Mark Zuckerberg, the CEO of Facebook, expressed a clear interest in the advancement of the metaverse. Facebook CEO Mark Zuckerberg stated in a recent earnings call that they are committed to unifying creators, communities and eCommerce in the metaverse.
“All of these initiatives have the overarching goal to bring the metaverse into being.”
Last week, Facebook changed its name to Meta. It also announced plans to create the “Metaverse”.
What size could metaverses grow?
There are already many household names who are making big money in this area, such as Fortnite and Roblox. These virtual reality worlds allow users to interact with avatars. Decentraland, Upland, and Sandbox are a few of the lesser-known virtual reality platforms. Victoria VR will also be available soon.
We can confidently state that the explosion in virtual reality is similar to the late 1990s dot-com boom. We are witnessing the creation of the next phase in the internet, with metaverses possibly set to replace and overtake the current web.
Fortnite is one of many companies that could grow to be alongside Amazon, Google, Amazon, and other tech giants. Epic Games, creators of Fortnite raised $1 billion. Sony invested $200 million in that round. Horizon, a new workspace and proto-metaverse VR platform from Facebook, is receiving a lot of attention and money.
Virtual reality is also a hot topic for brands. Brands have started selling to virtual avatars (D2A), and Gucci is selling a virtual bag for less than a real one.
Nike has started selling virtual Jordan’s in Fortnite, and Coca-Cola has begun selling virtual wearables in Decentraland.
Bloomberg estimates the value of the metaverse market at $800 billion. This market is still in its infancy, but savvy crypto investors will be able to contribute to its growth and trade in tokens from high-growth startups.
Many smart investors believe that virtual reality will continue to boom. One day, possibly in five years, there will be a virtual reality platform comparable to the major social networks.
How do you invest in the metaverses?
These virtual realities already include cryptocurrencies. Many platforms accept crypto as a payment option to purchase virtual goods, including VR-based real property. Decentraland and The Sandbox allow gamers to create virtual businesses, such as casinos or theme parks, and then monetize them.
Some of the work involved in ensuring that crypto investors reap the benefits of this trend has been completed. Jacob Navok, CEO at Genvid Technologies and Matthew Ball, futurist, founded Roundhill Investments. They recently registered the Metaverse ETF.
Metaverse ETF (exchange-traded fund) is an ETF that functions in a similar way to a stock exchange, but with crypto-based investments in Metaverse businesses. It is a group of investments in various companies, known as an index. This gives investors access to a large segment of the metaverse markets.
The Metaverse ETF currently has a market capitalization of $74 Billion. Its investments are spread across 41 companies (holdings), in eight countries. This includes investments in infrastructure companies like Cloudflare or Nvidia, gaming engines such as Unity and Roblox, as well the pioneers of metaverse content, Tencent, Sea, and Snap.
This index can only be sold through the New York Stock Exchange (NYSE) and does not include private companies. If you want to invest in an earlier stage, crypto investors and others will need to look elsewhere.
The best place to invest in early stages is the crypto space. Investors can join these companies long before they go public. This is true for gaming, content, and hardware companies.
It could be worth more that $1 trillion if we take into account the market’s total size and add in the core growth segments like creators, hardware and advertising. The Metaverse could be a lot more valuable if we consider the importance of the internet to our daily lives. Metaverse companies, particularly those at the ICO or IDO stage, are a great investment opportunity. However, you need to choose wisely.
We are part of an exciting event. With numerous upsides from the rapid expansion of virtual realities and metaverses, the internet will change the way we see reality.
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