It goes without saying that investors are always trying to get ahead of the next Big Thing. Many seem to think that the metaverse is among the contenders. Though there seems to be a bit of confusion about what the metaverse actually is, those who do understand it (or at least pretend to) are diversifying their investment portfolio with this fascinating new venture.
The Real Deal?
As with all investment opportunities, it is wise to do your research before parting with your money. Though the projections for the metaverse are optimistic, there is still an inherent risk in sinking money into a project that hasn’t yet fully taken off.
With that said, Bloomberg predicts that the metaverse could reach $80 billion in assets by 2024. Brian Nowak of Stanley, on the other hand, predicts an even larger sum: $8 trillion. The metaverse, of course, is closely tied to crypto as a whole, as that seems to be the currency that will be used in this virtual world. According to Insider, even Kevin O’Leary (Mr. Wonderful on Shark Tank) forecasts that innovative technology like crypto will turn into the S&P 500’s 12th sector.
Though the projections for the metaverse are merely speculative at this point, some pieces do seem to be locking into place. Many companies–such as Facebook (now Meta), Google, and Roblox–are already making waves in the virtual reality sphere. Even Microsoft is rumored to potentially acquire Blizzard, in a move that would provide real wings for the metaverse dreamers.
Where to Start
Investing in the metaverse is not as easy as with some crypto pursuits, where all that’s required is a payment app. (Though cryptocurrency as a whole has its own corner in the investment branch, and–albeit volatile–could be a worthwhile investment.)
Instead, investing in the metaverse involves sifting through the companies that would make a thriving parallel virtual reality possible and buying their stocks.
The obvious choices are the big players: Facebook (FB), Microsoft (MSFT), Google (GOOG). These brands are headlining the metaverse crusade. Additionally, something to look at are the gaming companies which will be providing content for the metaverse: Roblox (RBLX) is a popular option, but also Snapchat (SNAP) and Nvidia (NVDA).
Another, nontraditional route is buying virtual real estate within these metaverse worlds. For example, Snoop Dogg has famously moved into the metaverse with his own avatar, and an affluent investor dropped $450,000 to be his neighbor. Buying property in the metaverse requires first buying crypto–either Ethereum or SAND. There are the two currencies which are required in order to make purchases in the two major metaverse platforms: Decentraland and MANA, respectively.
As the metaverse grows in popularity, there’s no telling what options there will be. Perhaps Kim Kardashian will be a sought-after neighbor, or people will be forking over millions just for the chance to see Lady Gaga at neighborhood block parties. Though, naturally, there’s more to the metaverse than just real estate. An entirely virtual realm that isn’t fettered by the laws of reality? Anything will be possible.
So best get in while you can.