You can make both direct and indirect investments into the metaverse. There are three ways to put money into the metaverse. Metaverse tokens such as SAND or MANA can be purchased in the first step of the process. Non-fungible tokens are also available for purchase in the game. The third choice is to invest in metaverse real estate in the actual world.
It is possible to indirectly invest in Metaverse-related stocks like Apple and Facebook. It’s also possible to put your money into something called a metaverse index.
The era of the metaverse has arrived. The internet’s future will include a virtual environment where humans can communicate without the limits of physical location. Analysts believe that virtual environments could be the next big investment opportunity.
Even if the metaverse is still in its infancy, it has the potential to change everything from online shopping to social media and even real estate. Many businesses are hoping to take advantage of the growing popularity of these virtual worlds by offering their products and services to users. Since it is aiming to create the metaverse, Facebook has changed its name to “Meta” (FB). The company plans to invest billions in building the metaverse.
A rudimentary comprehension of the metaverse and how you might use it to your advantage is our goal.
What Is The Metaverse?
For a few decades now, the internet has fundamentally altered our perception of the world. The next generation of technology, on the other hand, is expected to be more immersive.
Advances in computing power, greater internet connectivity, artificial intelligence, and machine learning have made it possible to create virtual environments. An attempt is being made in this type of setting to give participants the impression that they are present even though they are not.
It is claimed that holograms powered by virtual reality sets or other devices can enable users “to execute practically everything that you can imagine,” as Meta CEO Mark Zuckerberg said in a video.
Shortly, avatars will be used for everything from teleportation to shopping to exercise to learning. Users can also recreate features of their real-life decor, such as their business or house, by incorporating intricate graphics, such as a beach in Hawaii As the result of fusing the hypothetical with the actual, meta depicts virtual reality as an idealized version of itself.
Rather than just seeing a grid of faces on a screen in a conference, Zuckerberg says, “you will have a shared sense of space” in the metaverse. We all share the same experience when we’re in virtual reality. Augmented reality can be used in the classroom, for example, to transport students to ancient Rome or the Amazon rainforest.
Investing In Metaverse: Its Market Potential
According to investment firm Grayscale, global revenue from virtual gaming might reach $400 billion by 2025, which would be an increase of 122% from the present value of $180 billion.
Large corporations are also getting engaged. Sotheby’s Metaverse, a new virtual gallery in Decentraland where visitors may explore available digital artwork, was launched for the first time last year and stated that the art gallery’s NFT sales had topped $100 million.
A virtual sneaker startup, RTFKT, will be acquired by Nike in December 2021 as part of the company’s plan to expand its digital reach. Givenchy, Gucci, and Dolce & Gabbana are just some of the high-end fashion brands that have hosted fashion shows in the metaverse.
Categories Of Metaverse Value Chain
1. Experience
Dematerializing space, distance, and objects will alter our online experiences in the form of virtual reality (VR), virtual reality games (such as E-sports), online purchases (such as apparel and real estate), and “live” events (such as concerts or sporting events).
2. Creator Economy
This category includes all the technology resources that content creators require to create the desired user experiences. Some websites, such as Roblox, do not require any coding skills to create content. The metaverse should allow for the use of specific tools such as geographic mapping, 3D graphics, NFTs, and so on for this notion to gain traction on a much larger scale.
Companies like Autodesk, Dassault Systèmes, Matterport, and Facebook (Meta Platforms) are just a handful of the companies that could play a significant role in the future of gaming.
3. Human Interface
It is the tools and hardware (both software and hardware) used to link the actual world with the virtual one, as well as the people that live there. 3D glasses, “smart” audio gear, networked watches and jewelry, neurological implants, smartphone apps, and haptic gadgets are all examples of wearable technology.
4. Discovery
Some technologies allow users to find and share information about specific experiences (like search engines and applications), and then some platforms convey generalized marketing messages that are not necessarily related to a specific search (e.g., a Facebook page) (notifications, visual ads, etc.). Alphabet, Apple, and Facebook are just a few of the corporations now functioning in this field (Meta).
5. Infrastructure
These include data centers, cloud computing, and semiconductors.
How To Invest In Metaverse And Make Money
It is possible to invest in metaverse directly or indirectly, depending on your level of access to necessary resources.
Direct Investment Into The Metaverse
The major three (3) ways in which you can invest in the metaverse are:
- Buy metaverse tokens
- Buy in-game NFTs
- Buy virtual land in the metaverse
Steps On How To Directly Invest In The Metaverse
Step A: Create a crypto wallet
All purchases must be made with cash, just like with real things. Cryptocurrency wallets and cryptocurrency are required for metaverse investment.
Validating your wallet and confirming your identity are both possible after you have completed the KYC (know your customer) requirements.
Step B: Open an account on your preferred platform
1. Buy metaverse token: you can buy these tokens directly on cryptocurrency exchanges like WazirX or CoinDCX if you already have currency in your wallet. Axie’s AXS and Sandbox’s SAND are the most sought-after metaverse tokens, followed closely by Decentraland’s MANA and Sand.
2. Purchase in-game NFTs: you must link your cryptocurrency wallet to your account to conduct transactions. There are characters in Axie Infinity, but you can also purchase and sell artwork in Decentraland.
OpenSea is a good place to go if you want to keep track of all your NFTs in one place.
Step C: Select your preferred NTF to buy and make payment
There are no predetermined prices for NFTs on any of the mentioned sites. ‘ To acquire the NFT, a bidder must outbid all other bidders and win the auction. The NFT is quickly paid for using the wallet you created and loaded with bitcoin in Step A.
A primary market or a secondary market has advantages and disadvantages that must be taken into consideration (OpenSea, etc.). When it comes to resale value in the secondary market, an NFT will always be more valuable than an NFT.
The primary market, on the other hand, makes it more difficult to gauge its real worth. The secondary market makes price comparisons of NFTs simpler than price comparisons on the primary market.
Indirect Investment Into The Metaverse
Metaverse can be invested into through the following ways:
1. Invest In Metaverse Index (MVI)
The metaverse index, like stock market indexes, reflects the moving trends in entertainment, business, and gaming to the virtual universe. The cost is $225.86 right now. Investing in metaverse tokens has become less risky as a result of the VMI. With the VMI as a reference, you can see which metaverse tokens are performing the best.
Metaverse expansion and growth are only just beginning. Right now, there is a significant change from the physical to the virtual world. Before making any major investments, do your homework properly.
2. Buy Metaverse-Associated Stocks
The stocks of companies involved in the establishment of the metaverse are known as metaverse-associated equities. Virtual reality eyewear, networking, and 3D rendering software might all be developed by organizations.
Conclusion
For thematic investing, you’ll have to choose between major and small-cap stocks, as well as pure-play equities, which tend to be more volatile but also more sensitive to changes in the underlying theme. A high-risk, high-reward investment opportunity is on the table for you here.
