The metaverse is no longer a science fiction concept; it’s a tangible reality reshaping how we interact with the digital world. As this immersive virtual space gains momentum, it’s also opening up exciting investment opportunities.
We will explore various facets of the metaverse economy and how you can potentially invest in this burgeoning landscape.
Metaverse – Explained!
To put it simply, the metaverse is a virtual environment that merges the aspects of digital and virtual reality and gives you a real-world experience from the comfort of your couch.
It’s a space where users can interact with each other, play games, create digital art, hold meetings, and attend concerts with millions of other users using avatars of themselves or other digital representations.
Unlike the current internet, the metaverse aims to create immersive and interconnected experiences, revolutionizing the way we live, work, and play online.
Market Size and Growth Potential
You don’t have to look far in order to determine why Meta has become such a household name in recent times and why it holds significant importance in how the world will be reshaped in the coming times.
Facebook rebranded its corporate identity to Meta in the year 2021 and announced plans that will invest at least $10 billion in the projects. This announcement gave the world a clear indication of why the hype around the term Metaverse is real.
Facebook was not the only major player to dip its toe in this concept. Google, Microsoft, and Nvidia are also investing billions in this concept. Apple has also recently jumped into this pool of industry giants when it launched new VR goggles in 2023. The company had high hopes that it could entice users’ interest in virtual reality by introducing a product that can give a person a very immersive experience.
According to McKinsey & Company, the Metaverse economy can reach $5 Trillion by the year 2030. According to their research, the United States has the most potential to gain benefits from using the Metaverse as a means of global development. The research gave a mouth-watering figure where Metaverse can help inject between $402 billion and $760 billion in the U.S. annual GDP by the year 2035.
The gaming industry could be a big winner in the rise of the metaverse. According to Bloomberg Intelligence, by 2024, gaming is expected to make up about half of the metaverse market, which could be worth $400 billion. Right now, major players in this space include Epic Games, Roblox, and Microsoft. Microsoft is especially strong because they already own Minecraft, one of the most popular video games ever. They also recently bought Activision Blizzard, the company behind games like Call of Duty, for a whopping $69 billion. This purchase is the biggest ever in the video game industry, and it shows that where Microsoft goes, others might follow.
The growth potential of Metaverse is fueled not only by increased internet penetration. The advancement in VR and AR technologies and the growing appetite for immersive experience puts Metaverse at the level where it looks like an unprecedented investment opportunity.
Investment Opportunities in Metaverse
Now we arrive at the most interesting part of the discussion as to what opportunities one individual can avail when thinking about planning in the Metaverse. There are numerous avenues that one can explore when they think about finding an investment opportunity inside the Metaverse. It all depends on your understanding of the particular field or which concepts intrigue you the most. Here are a few examples that come to the top of the mind in regard to their association with the Metaverse.
1. Virtual Real Estate
Just like in the physical world, you can buy, sell, and develop virtual land or property within the metaverse. Platforms like Decentraland, The Sandbox, and Somnium Space allow users to purchase virtual land parcels and build on them. Investing in virtual real estate can potentially yield profits as demand for prime virtual locations increases.
2. Cryptocurrency
Trading and investing in cryptocurrencies inside the metaverse is also a very appealing option for many people. The crypto landscape has grown tenfold in the past decade and the Metaverse world is also not an exception to this.
You can not only buy and sell different cryptos inside the Metaverse. You can also use that crypto to purchase items that are held inside the metaverse. They can vary from virtual real estate to virtual games, products of brands like Nike and Gucci, etc. The options are endless.
3. Gaming and eSports
Invest time and effort into becoming a professional gamer or eSports athlete within metaverse games. Some metaverse platforms host competitive gaming tournaments with cash prizes.
4. Content Creation
If you have skills in 3D modelling, game design, or content creation, you can create and sell virtual items, buildings, wearables, or art within the metaverse. NFTs (Non-Fungible Tokens) are often used to represent ownership of these digital assets, allowing creators to profit from their work.
5. Virtual Businesses
You can also start your own business within the metaverse. The model of your business can vary from service-oriented business to entertainment venues to creating your own virtual shop. You can also provide services to other users depending upon your expertise in exchange for an agreed fee.
6. Social Events
Host and promote events, conferences, concerts, or social gatherings within the metaverse. Earnings can come from ticket sales, sponsorship deals, or in-world advertising. One famous example is the virtual concert held in April of 2020 during the COVID-19 Pandemic Lockdown. The concert was hosted by Fortnite, and it featured American Rapper Travis Scott.
The event took place inside the game’s virtual world, and it attracted millions of players and viewers from around the world. During the concert, players’ avatars were transformed into a giant version of Travis Scott, and they were taken on a surreal audiovisual journey through various virtual landscapes while Travis Scott’s music played.
7. Education
Offer educational courses or consulting services within the metaverse. As virtual learning becomes more popular, there may be opportunities to profit from teaching or training in virtual environments.
8. NFTs
Non-fungible tokens (NFTs) have gained significant attention and use within the metaverse and virtual environments.
You can buy NFT as an asset, and just like its real-world counterpart, your purchase can have an increase in its value over time. Provided that particular NFT gains popularity over time and one day becomes a sought-after commodity, just like rare objects or beautiful artworks in the real world.
Some Tips for Investors
While reading this, you might find investing in the metaverse to be a very lucrative prospect, especially from a financial standpoint. While we are all for encouraging anyone to create for themselves a better opportunity, it is also essential to keep in mind the risks involved with any financial decision. Metaverse is no different in that aspect.
Like any emerging technology, Metaverse is very volatile, so only invest what you can afford to lose. Do proper risk management before undertaking any such financial decision, and like any investment, try to diversify your portfolio. As the saying goes: don’t put all your eggs in one basket, and don’t put all your funds into a single metaverse asset or cryptocurrency.
Metaverse is poised to disrupt industries and create new opportunities, and investors have a chance to be part of this transformative journey. With the right approach and awareness of potential risks, the metaverse can be a rewarding arena for investment and innovation.
