- The metaverse offers a new twist on a digital world.
- You can participate in the metaverse as an avatar.
- It’s easy to expose your portfolio to the metaverse with a Q.ai kit
You’ve heard the term “metaverse” casually, at work and everywhere. Although this term is commonly used, it may not be entirely clear to you what the metaverse is in its current state.
Let’s jump right into exploring what the metaverse really is right now and what it could mean for your investment portfolio.
What is the Metaverse today?
Though coined in the early 1990s in a Neal Stephenson novel, the early stages of the metaverse are now a reality. When you hear about the metaverse, it’s often presented as the next frontier in the tech industry. The metaverse is a collection of digital platforms focused on virtual and augmented reality opportunities.
Of course, the focus of the metaverse is the virtual realm. But some people imagine that the metaverse includes hardware, mainly headphones and smartphones.
The ultimate goal of this digital space seems to be the creation of an individualized user experience. In the future, you may be able to explore remote destinations through a VR headset or connect with others in entirely new ways through the digital network of the metaverse. The foundation of this digital realm is the blockchain.
Examples of popular Metaverse games
As of now, the metaverse is more accessible through integrations within other online attractions, such as video games. Some of the most popular video games currently in the metaverse include:
Sandbox: Within the Sandbox, you can create any number of things, including avatars, vehicles, tools, and more. When you create within the Sandbox, you will have the option to sell your creations to other users. The main currency used within this platform is Sand, which can be used to purchase digital real estate.
Decentraland: Decentraland gives users the opportunity to create avatars, purchase wearable devices for their avatar, and purchase digital property available for sale. It is even possible to earn income in this world by setting up a business on your piece of digital real estate, which is powered by the Ethereum blockchain.
farmers world: Farmers World was launched in 2021. You can buy a digital property to farm and earn income. Some ways to earn in this world include mining for gold, raising cattle, and building houses. As your plot of land creates goods, you can trade with other users.
axie infinity: This corner of the metaverse was inspired by Pokémon. Within the game, virtual pets and items are available as NFTs.
At first glance, it’s easy to confuse regular video games with the metaverse. But in general, most agree that the metaverse must be linked to the blockchain in some way. With that distinction, it is possible to differentiate between the two.
Metaverse cryptocurrencies and ETFs
Although no one can predict the future, many are placing big bets on the future of the metaverse.
For example, Meta’s Mark Zuckerberg is driving the company’s direction and investment deeper into the metaverse. In 2021 alone, Meta spent $10 billion dollars designing their own metaverse. That is an immense amount of capital to invest in the future of the metaverse. The company envisions benefits at the end of the tunnel in the form of a platform where creators buy and sell digital products.
As major companies like Meta move into the metaverse, there are more opportunities to include metaverse exposure in your investment portfolio. An example includes the Fidelity FMET ETF, which includes exposure to Alphabet, Apple, Nintendo, Meta and more.
Is Metaverse real estate worth anything?
If you’re looking at the metaverse as a digital real estate investment opportunity, you’re not alone. Many investors consider the metaverse to be the next frontier in real estate investing.
If the idea of fully online digital locations becomes a reality, digital real estate could provide an opportunity for creators to generate an income stream by selling to others in the metaverse. For example, you could buy digital real estate and sell tickets to virtual events or sell digital art for those within the metaverse to enjoy.
There are many different opportunities to find your footing in the metaverse, and more and more platforms may appear, hoping to engage you.
What is not yet clear is which platforms will become the most popular. And because of that, it can be challenging to determine what real estate in the metaverse will be worth a significant amount in the future.
Many look for platforms with market capitalization as those with the most upside potential. Decentraland and The Sandbox have market capitalizations in the billions which offer an encouraging opportunity for some investors. A cap on the number of packages introduces an upper limit to the supply. Therefore, if the demand for this digital property increases, the price of a plot is likely to increase.
Before jumping into any digital real estate investment, it’s worth noting that these assets carry extreme risk. Although it is possible for real estate in the metaverse to increase in value, it is also possible for it to decrease. With that, this opportunity is more attractive to those with a high tolerance for risk. If you are unable or unwilling to meet the high risk required by this investment, it may not be the right choice for your investment portfolio.
The metaverse is not just a buzzword. It is facilitating a new way for people to interact on the Internet, now manifesting itself in games and social platforms. If you want to add exposure to this new type of asset in your investment portfolio, it may take some time to get up to speed with all the ins and outs of the industry.
Apparel and fashion brands like Nike have also launched directly into the Metaverse: Nikeland has attracted users with more than just digitally remastered shopping experiences, drawing on top talent like LeBron James for appearances. This is likely to be the next wave of the Metaverse, where lifestyle takes on a whole new meaning.
Instead of investing in any and all of the companies listed here, investors can capture the momentum of the Metaverse while protecting themselves from a variety of its top players. Q.ai offers artificial intelligence that scours the markets for the best investments and bundles them into handy investment kits like your Emerging Technology Kit.
Download Q.ai today to access investment strategies powered by AI. When you deposit $100, we’ll add an additional $100 to your account.