By now, you’ve likely heard the term “metaverse” thrown around a time or two. You’ve likely also heard that the metaverse is the future, and now is the time to invest in the projected trillion-dollar revenue opportunity. But, how can you invest in something you don’t understand? Don’t worry. In this post, we’ll go over the basics of the metaverse and investing in it.
Over the course of the next several years, the metaverse will start playing a central role in our lives as companies, entrepreneurs, and everyone in between looks at ways to take advantage of this next big wave in tech. In the metaverse, instead of spending their online time on browsers or domains, users are completely immersed in a virtual world.
Cryptocurrency will help fuel the new-age exploration — whether it’s via buying digital land or a digital designer handbag NFT, cryptocurrency will be the primary form of exchanging goods and services.
What is the Metaverse?
The metaverse is a virtual world where users create personalized avatars and explore. It goes well beyond gaming and allows users to virtually interact and experience activities in real-time.
The metaverse combines multiple elements of technology, such as virtual reality (VR), augmented reality (AR), and video, to enable users to “live” in a digital universe.
Although recently emerging, the term and concept of the metaverse aren’t new. In fact, it was coined back in 1992 by author Neal Stephenson in his sci-fi novel “Snow Crash,” in which he envisioned lifelike avatars who meet in 3D buildings and other types of virtual reality environments.
Tech giants such as Meta (formerly Facebook), Microsoft, Apple, and Roblox are already key players in the metaverse.
Crypto in the Metaverse
NFTs (non-fungible tokens) are also fueling — and funding — the metaverse investing boom. People use these tokens to buy digital assets, including virtual land or outfits for their avatars. Certain metaverse cryptos even allow their owners to vote on decisions within the metaverse platform they use, including where money should be invested or which new features should be released first.
Decentraland, for example, is a virtual world that allows users to own digital plots of pixelated land. Property values in Decentraland have skyrocketed in the midst of the NFT craze. Underdeveloped land parcels that measure 16 meters x 16 meters are now selling for upwards of $6,000 — they used to sell for $20!
Decentraland is also experiencing an explosion in growth. Its daily users grew from about 1,500 to 18,000 in the fourth quarter of 2021.
Metaverse investors are gobbling up plots of digital land with the intention of turning it into an established space and eventually turning a huge profit.
NFTs in the Metaverse
NFTs are pieces of data that prove that users maintain ownership of digital ( and sometimes real world) items — from tweets to concert tickets and even game-winning shots in professional sports!
If Ethereum, Bitcoin, and Dogecoin are the money of the metaverse, NFTs represent the things that fill up the virtual universe.
NFTs are predicted to take over the video game industry as players exchange money or cryptocurrency for unique avatars, skins, and other items.
The NFT craze is also booming among collectors and investors as some spend millions of dollars for them. NFT trading volume was expected to surpass $24 billion in 2021 — a massive increase from only $0.1 billion in 2020.
NFTs and Virtual Real Estate
As we mentioned, NFTs show ownership of specific items, and that includes virtual real estate. Investment firms have been pouring millions into digital land across the metaverse. Rapper Snoop Dogg is even getting involved! In September 2021, he announced via Twitter that he was entering the Metaverse on the blockchain-based mobile game platform Sandbox that allows players to buy and sell digital assets. After Snoop’s announcement, an anonymous Sandbox player purchased an in-game plot of land next to Snoop’s virtual mansion for nearly $500,000 — yes, half a million real U.S. dollars.
Since Snoop Dogg’s announcement, total sales within The Sandbox’s virtual world have surged, with daily trading volume of NFTs exceeding $180 million in December 2021, up from about $800K the year before.
Another notable metaverse real estate transaction is tokens.com’s $2.8 million purchase of virtual land for a digital fashion district.
After you’ve got your land, it’s time for development. Architects are busy creating office buildings, luxury homes, entertainment complexes, and shopping malls that people can visit and enjoy in 3D without having to leave their physical homes.
Investing in the Metaverse
If you’re ready to see what all the hype’s about for yourself and start investing in the metaverse, follow these steps:
Step 1: Create a cryptocurrency wallet
Just like the real world, every metaverse purchase requires money. Your crypto wallet will hold all of your digital currency for your investments in the metaverse.
WazirX, CoinDCX, and CoinSwith Kuber are popular crypto wallet options.
For NFT purchases, the most popular crypto wallets include MetaMask, Coinbase, and Binance.
Step 2: Create an account on a platform
To purchase metaverse commemoratives, you’ll need to use some money from whichever crypto exchange houses your digital funds to directly purchase the commemoratives. Currently, the most sought-after metaverse commemoratives include MANA, SAND, and AXS — all of which are currencies of different metaverses.
To purchase in-game NFTs and virtual real estate, you’ll need an account on the platform you intend to make the purchases on and connect your crypto wallet to it.
Step 3: Find the NFT you want to buy and make an offer
NFTs don’t have pre-determined selling prices. Instead, you bid on them. The highest bid wins the NFT.
As long as your wallet is funded, the parcel is chosen, and the price has been agreed upon, you’re ready for your first metaverse purchase! The transaction will be recorded on your wallet and will generate an NFT title that you can display to show off your new 21st-century investment.
Where to Invest in the Metaverse
Many metaverse real estate investors are looking to go beyond merely buying land. They want to create something that’s truly worthy of investment. The possibilities are truly endless, but here are some good options that investors are currently considering and investing in:
Metaverse Event Space
Metaverse event space is an excellent opportunity for booking short-term rentals on your metaverse property. If your structure is big enough to accommodate events like virtual concerts, you can attract musicians and other performers looking for a new way to reach their audience that may not be willing to attend in-person events.
The billboard is a traditional advertising form that will absolutely carry over into the metaverse. This is because metaverse platforms have roads and traffic, making billboards valuable platforms to reach diverse audiences. Similar to IRL, metaverse billboard income comes from renting out spaces to companies looking to advertise to passersby.
Experiences in the metaverse are going to be out of this world — pun intended! Six Flags just can’t hold a candle to everything that’s possible in the virtual universe. Of course, you’ll need ample space and imagination to create something that’s sure to generate ticket sales. You’ll get some bonus points if you can update, change, or remodel your space on the cheap compared to real-life amusement parks that require expensive and time-consuming repairs and updates.
Malls and Commercial Shopping Centers
Fashion is going to be big in the metaverse, and the shopping mall will have a comeback. Nike is aiming to be the king of virtual sneakers and clothing in the metaverse and has already filed a series of patents for digital apparel.
Brands will need lots of space to create metaverse showrooms and stores. In fact, a lot of brands are already seeing success promoting and selling NFT versions of their real-life products. From custom sneakers to exclusive handbags and other hard-to-attain objects, the metaverse can help users express themselves.
The chances that we will ever return to pre-pandemic rates of working from the office are extremely low, and companies are looking for ways to bring their teams together. Instead of relying on dedicated metaverse platforms to create office spaces, metaverse office space on larger platforms adds another element of the real world into its virtual counterpart.
When it comes to the metaverse, the possibilities truly are endless and are only limited by our imaginations and the ingenuity of those exploring the space. If you’d like to learn more about the metaverse and how you can get started investing, feel free to reach out to us today.