What is a metaverse? This article explains what the term means and why it could be an enticing opportunity for investors.
The metaverse—there are a lot of questions surrounding this trending topic, among the biggest, what exactly it is and whether it is a good opportunity for investment. Because the idea is just getting off the ground, it is still relatively volatile, so investors should use their best judgment when deciding where to put their money. Here’s what you should know about the metaverse and how to invest in it.
What is a metaverse?
A metaverse is an environment that contains many virtual worlds. First coined in the sci-fi novel “Snow Crash” by Neal Stephenson, the term refers to a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual reality (VR) places and spaces.
Multiple virtual worlds exist simultaneously and provide a platform for people to interact and meet with one another. At its most basic, a virtual world consists of three things: spaces (a location in cyberspace), geographies (the borders or surroundings of these spaces), and inhabitants (people and entities that populate the space).
A metaverse is a simulated environment that can be inhabited by the users in much the same way that gamers inhabit an online game. As long as you have an account and a digital avatar, you are free to move about and do whatever you want within the bounds of the world. Some participants enjoy creating objects or artworks for others to buy while others focus on interacting with avatars belonging to other users in order to share thoughts, ideas, and more.
How to Invest in the Metaverse
Virtual reality is coming and with it a new way of life. This is the metaverse, and if you want to be a part of it from the ground up, you need to know how to invest in it.
Metaverse Platforms
In the same way that apps transformed mobile, transforming web content to a 3D environment will eventually be the norm. Companies investing in these platforms will have a significant advantage, as they’ll be able to create interactive web content that users can explore and experience using virtual reality headsets.
Some of these companies include:
- Meta (formerly Facebook)
- Microsoft
- Nvidia
- Unity Software
While these are some of the biggest names, there are many others you can choose for an investment opportunity.
Cryptocurrency
There are a few reasons why you might want to invest in cryptocurrency. To name one, it could be a good investment opportunity in the sense that there is no telling how much the prices will go up from where they are now. Many cryptocurrencies have enjoyed massive gains over the years, but it’s important to be aware that putting your money into crypto can be risky—volatility is high for many cryptocurrencies.
How does investing in crypto help you in the metaverse? In the metaverse, cryptocurrency will be used to perform transactions. You can use it to pay for digital art, virtual real estate, and much more.
NFTs
Non-fungible tokens (NFTs) are a new asset class that is quickly growing as a result of the tokenization trend. These digital assets can be collected, bought, and sold and will be a major part of the metaverse moving forward.