The metaverse embodies a major digital revolution that should lead us towards a new virtual economy. While this is the 'new buzz concept' of the blockchain and cryptocurrency market, its applications are very real and its growth prospects are attractive.
What is Metaverse? What's the point ? Why and how to invest in the Metaverse? All our explanations.
What is it Metaverse?
The metaverse, which means "beyond" (meta) of the universe (worms), is often described as the evolution of the internet and the transition to web 3.0. It relies primarily on the user's full immersion and interconnectivity in their online experience, including virtual reality and augmented reality.
It is difficult to come up with a single definition of the concept of metaverse, as it is constantly evolving. Also, there is not just one Metaverse, but several - and in each Metaverse you can do multiple activities ...
However, we can say that the metaverse represents a general theme denoting some sort of virtual experience or virtual world that you typically visit in the form of an avatar.
What can be done in the metaverse?
The metaverse attempts to create bridges between the real world and the virtual world. This fusion of the two worlds allows users to do and discover many activities.
Here are some examples of what can be done in a metaverse.
Create an avatar to virtually become the person you dream of being
You can build your presence and personality in the metaverse by creating your avatar. You can go for the realistic option of customizing your avatar to look like you or you can become a whole different person like the one you dream of being.
Explore the digital world
Once you've created your avatar, you can explore and lose yourself in your chosen virtual world, seeing the scenes, landscapes, and structures created by other members. You can also visit museums, play games, bet in casinos, etc.
Communicate with others
You can easily communicate with other community members through voice messages or texts, which allows you to form new relationships or strengthen the ones you already have.
Buy and sell assets
You can acquire many digital assets on the metaverse to personalize your avatar, furnish your space, etc.
Buy, Build or Rent a structure
You can buy and / or rent property or land on the metaverse or even build a structure that you can then show off to other community members. Virtual real estate is one of the most popular activities in the metaverse right now!
Share your creations
The Metaverse is also a great place if you are a creator, as you can publish or sell your works and creations there. The only limit is your imagination !
How do you make money in the metaverse?
By offering a new experience to users of digital technologies, the metaverse offers different ways to make money in this parallel world, bringing a new dimension to our consumption habits.
Trading
E-commerce is arguably one of the most promising uses of the metaverse for those who want to sell things there. And big companies are already doing it! We recently learned that Nike has bought the company RTFKT which dresses avatars in the metaverse.
Advertise
For many, the metaverse can invent the marketing of the future with new advertisements and strategies to promote brands. This new virtual and connected universe seems to bring together a new, more tight-knit community that could be even more loyal than in the physical world.
Create a business
Beyond virtual fashion, online shopping and marketing, you can create any business on the metaverse, such as offering your services as an architect or designer specializing in the metaverse, developing games, opening a casino. online or even organize parties or concerts for example.
Invest in real estate
Virtual real estate in the metaverse is booming and digital lands are on the rise, especially for creating e-commerce spaces or organizing events or parties.
How to invest in the metaverse?
With more and more companies taking an interest in the metaverse, the growth potential of this sector looks promising and investors are wondering how to take advantage of it.
There are several ways to gain exposure to the Metaverse depending on your trading strategy, risk tolerance, time horizon and goals. Here are some popular methods for investing in the Metaverse directly or indirectly.
Cryptocurrencies
The use of cryptocurrencies makes shopping much easier in the virtual world. Each metaverse usually has its own cryptocurrency, the price of which varies according to the evolution of supply and demand, such as The Sandbox's SAND or Decentraland's MANA.
NFT
Since it is possible to buy and sell digital assets in the metaverse, non-fungible tokens, or NFTs, which are unique tokens used to certify digital ownership of what they represent, play an important role.
Invest in companies interested in the metaverse
There are believed to be over 90 companies working to somehow shape our interaction with the metaverse according to CB Insights. Marketplaces, financial services, avatars, virtual worlds, virtual and augmented reality glasses and headsets, and computer programs - you have a wide choice of companies to invest in.
Invest in ETFs dedicated to the metaverse universe
You can invest in the universe of the metaverse through certain ETFs that bring together different companies in the sector such as Roundhill Ball Metaverse ETF, Horizons Global Metaverse Index ETF or Evolve Metaverse ETF.