How to Invest in the Metaverse: 2022 Beginner's Guide
What is the Metaverse?
However, at the time of writing, it is unclear in what path the Metaverse will ultimately go. For all we know, the future metaverse may be a unique setting that defies our current understanding.
The internet, according to some, is the Metaverse, while others assert that it is a location where the actual world and augmented and virtual reality collide.
What’s in the metaverse?
- the ability to interact with other users using avatars
- the ability to host and participate in events, with a fully immersed experience
- the availability of structures or environment that emulate those in the real world
- the ability to own assets in the metaverse
- the ability to make money in the metaverse (which will affect how businesses will be done – think advertising and shopping within the metaverse)
A common misconception is that the Metaverse is an environment purely for gaming. However, we could think of it as a technology that delivers the clearest forms of presence on the internet.
For example, it could provide you with the same experience as attending a physical meeting instead of just a Zoom meeting.
Where will the Metaverse be?
At the point of writing, there seem to be two potentially distinct paths to the development of the Metaverse:
- Metaverse built on existing technologies
Companies like Meta Platforms, Microsoft, Nvidia and many others are focused on building the metaverse as a new experience for users. This version of the Metaverse is likely to be supported by current big tech companies.
If you’re bullish on this version of the Metaverse, you might be interested in the following section on the best Metaverse stocks to invest in.
- Metaverse on the blockchain
Another path is the development of the Metaverse on the blockchain. This is highly intertwined with the concept of Web3, which is another deep topic that we’ll cover in a separate guide. For now, you can think of it as a decentralised internet which no single corporation or government owns or have control over.
If you’re bullish on this version of the Metaverse, you might be interested in the next section below on the best Metaverse cryptocurrencies to invest in.
These paths could likely converge or simply co-exist in the future; regardless, the Metaverse market size has been forecasted to grow to a whopping $828.95B by 2028! For context, it was already worth about $48B in 2020.
Who will build the Metaverse?
This can serve as a useful framework to find investing opportunities in the Metaverse, which brings us to the next section on how to invest.
How to Invest in the Metaverse?
Today, there are many opportunities to gain exposure to Metaverse’s growth, which I divided into 4 main categories:
- Stocks: These are listed companies that are building the technology, hardware or infrastructure that would support the metaverse.
- Cryptocurrencies: These are cryptocurrency projects that are building the technology or infrastructure that would support the metaverse on the blockchain.
- Virtual Land: Virtual real estate that could allow you to generate a revenue in the metaverse.
- NFTs: Virtual assets that could deliver value when the metaverse has been developed.
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