In recent years, the Metaverse has become one of the most exciting areas of technology in the world of cryptocurrencies. Many investors may have heard of it but have yet to learn what it is, while others may be well-versed in it but need to learn how to get involved.
You can either invest in Metaverse or at least put a tentative toe in the water no matter what stage of your interest you are at. This is one area of technology you want to take advantage of, as Emergen Research estimates that the Metaverse could grow to be an $800 billion industry by 2028.
What are the most promising parts of the Metaverse?
Axa believes that there are four sectors of the Metaverse that offer long-term investment opportunities:
- The first building block of the Metaverse is gaming, where the number of virtual and augmented reality headsets will increase from four million in 2021 to 42 million by 2025.
- As individuals seek greater opportunities to connect, socializing has become an increasingly important aspect of the Metaverse.
- The concept of working from home and connecting and collaborating online.
- It is the enablers that provide semiconductors, network infrastructure, and technologies that enable the Metaverse to function, as well as digital payment companies and cyber security companies.
What are the best ways to invest in the Metaverse?
To invest in the Metaverse, there are two primary methods:
- As an indirect investment, you may be able to gain exposure to the Metaverse by purchasing stocks of companies or ETFs that invest in it;
- Following the direct method, users can purchase properties and assets within the Metaverse.
Stocks in the Metaverse
According to our research, metaverse companies can be extremely profitable solely by selling cosmetics. What is the easiest way to invest in the Metaverse? There are several options available to you. Stocks can be the simplest and easiest-to-understand way to invest in the Metaverse.
Of course, Meta Platforms is the most obvious metaverse stock. Meta Platforms recently launched Horizon Worlds, a virtual reality metaverse platform. With Horizon Worlds, users can interact with avatars and enjoy play-to-earn games as they wander through the virtual world. Other metaverse stocks include:
- Minecraft and Mesh are Microsoft’s offerings that address the gaming and office/collaboration aspects of the Metaverse. According to the company, Microsoft also has its own VR headset, the Hololens.
- Companies with VR devices will likely make solid Metaverse plays. Sony’s PlayStation VR and HP’s Reverb are two good examples.
- Among the options are cloud computing companies such as Amazon Web Services and Microsoft Azure, as well as data center operators such as Akamai Technologies and Fastly.
- Roblox’s metaverse platform allows gamers and game creators to create games together.
- This company offers simulation development for various industries but has yet to be profitable. It has developed more than 70% of the top 1,000 mobile games.
Real estate in the Metaverse
Digital real estate is represented by non-fungible tokens created on blockchain networks, representing some form of digital asset. Your metaverse real estate can be rented out, sold for more than you paid, or even built virtually when you own it.
Creating your virtual property can be profitable, just like owning real estate. For example, Atari purchased 20 parcels on Decentraland and created its own crypto casino. There is a virtual casino where gamblers can place bets using Atari’s native ERC20-based tokens and receive their winnings tax-free in cryptocurrency. In addition, Atari announced plans for its virtual hotel later this year, which would be available to consumers soon. It is unclear how Atari might be able to monetize a virtual hotel. Still, when it is revealed, other investors may gain some insight into how to profit from virtual real estate investments.
Just as in real-life real estate, you can also make money in the Metaverse by buying and selling property. A piece of real estate in Decentraland was worth $2.5 million, which shows how much money can be made by purchasing it and then selling it. As part of this particular piece of property, real-world luxury brands are expected to advertise and sell digital versions of their luxury goods in a fashion district.
Non-Fungible Tokens
It is important to note that NFTs are related to metaverse real estate. However, they can be used to represent assets other than virtual properties. The most common use of NFTs is as proof of ownership for digital artwork. An NFT certifies that a piece of digital art is original, either the only original or one of only a few originals available.
In Balogh’s view, Metaverses and NFTs will play an important role in the future of digital and physical assets’ utility and display. With one click, you can acquire products in the Metaverse as NFTs and return to the real world to receive them.
Is it worthwhile to invest in the Metaverse?
As with any investment, you should consider several factors before investing in the Metaverse. All aspects of the Metaverse remain highly speculative. Investing money you cannot afford to lose is never a good idea. On the other hand, investors can make a lot of money by selecting one or more options on this list.
The best thing you can do is speak with a financial advisor familiar with metaverse investments. Moreover, he can help you determine their suitability for your portfolio.
