Have you been willing to invest in Metaverse but wondered how?
How to invest in Metaverse. Source: pexels.com
By now, it is more likely that you have heard about Metaverse either from the internet or your friends. In October 2021, Mark Zuckerberg announced Facebook’s rebranding to Meta, which led to people talking about Metaverse. No one really knows if Metaverse will be the future of the internet, or whether it will be the next big thing. Interestingly, many people are willing to invest in Metaverse even before it becomes mainstream. Here is some good news on how you can invest in Metaverse. But before then,
What exactly is a Metaverse?
In 1992, science fiction writer Neal Stephenson proposed the “Metaverse” word in the book ‘Snow Crash’ to refer to a world generated by computers. It can be defined as the digital reality that combines social media, online gaming, augmented reality, and cryptocurrencies to enable users to interact and act virtually. Sounds like something from a fantasy world? Imagine this, your family lives far away, and you miss them; instead of taking a flight to visit them, you can visit them using Metaverse to virtually transport yourself by putting on a virtual reality (VR) headset. Yes, it is exhilarating, perfectly agreed.
Metaverse allows users to interact in the online world, and it’s presumed to be the next stage in internet evolution, and more captivating than a simple observation on phone screens or computers. Augmented reality (AR) and VR are expected to immerse us in the virtual world. Different companies are working to develop their Metaverse.
Facebook (Meta) is working on hardware and already has a strong user base on its social platform. According to its CEO, who has been investing in AR and VR, he expects people to think of social media companies rather than metaverse companies one day. Sandbox and Decentraland are blockchain-based metaverses. They are decentralised and community-driven virtual worlds where land can be purchased as Non-fungible tokens (NFTs)and built anything. Metaverse followers visualise it helping develop friends’ attachments through live performances.
What makes us believe that Metaverse has a future?
Major tech companies are jumping into metaverse headfirst. Enterprise metaverse is what Microsoft wants to create. Mark Zuckerburg seems to be all invested. Multiplayer games like Fortnite Minecraft which is Microsoft-operated, have ensured the formation of systems that serve as the development of the Metaverse Foundation. Some game designers believe Roblox to be the most strong metaverse framework of the future. NFTs and Cryptos enhance the easier purchase of items within the Metaverse, resulting in economic benefits expansion.
Investing in Metaverse
There are different ways to invest in the Metaverse. Below is an expansion on each one of them.
Buy cryptocurrencies linked to metaverse games
Sandbox and Decentraland are blockchain games, and buying Cryptocurrency linked in these games is one way of investing in Metaverse. These games explore what the others have built, and the community creates a virtual world where a person can walk around. Being decentralised games, it means they are not run by any central authority that controls what is created and what cannot be created in a person’s own space.
If you purchase land or objects within a game, they are NFTs, and you indefinitely own them. Compared to traditional computer games where in-game tokens are bought, or real money is used to purchase items when a company is no longer in charge of the game or your account is banned, everything you paid for is lost.
Decentraland
Metaverse’s most popular game and market capitalisation, MANA, is their most valuable metaverse-based Cryptocurrency. MANA is the token used to allow interaction with the Metaverse of Decentraland. When playing games in Decentraland, you are likely to incur an entrance fee, but digital items are won too. Decentraland can be used to purchase items in the virtual world or attend events virtually. Decentraland has casinos too, where MANA is won; it can be spent in the game or exchanged for fiat currency on a crypto exchange. People are hired to greet users entering the casino, a classic example of a job created in the virtual world. If Decentraland increases popularity through many exciting features and events, more impressive spaces within the virtual world will be built. It will also bring a big number of unending users, thus increasing the price of MANA since users need MANA for Decentaland interaction.
Buy virtual real estate in the Metaverse
Buying real estate in a game such as Decentraland is another method of investing in Metaverse. It may seem irrational at first when you try to understand the idea of buying a place that does not exist in the physical world, worse still, a place you cannot reside. Nevertheless, when you think of it in a supply and demand perspective, recognising that land in the Decentraland metaverse is a non-renewable resource, it can be a logical investment whose value appreciates with time.
Once you own land in Decentraland, it is yours and unique and, therefore, no replication. Estate is two or more associations of parcels of LAND adjacent to each other. So when you want to buy virtual real estate, you search for the parcel you want to buy in the Decentraland marketplace. All parcels were auctioned in 2018; therefore, none was left in the marketplace. If you want a parcel, you have to buy it from the current owner of the parcel. However, MANA is needed when making a payment for the parcel or a virtual real estate. You can view the LAND in the 3D version within the game and its location concerning Decentraland’s map.
On top of holding your real estate and waiting for the value to increase, there are other ways to earn money from real estate like leasing LAND to someone who wants to build on your parcel, receive rental payment in ETH or MANA, or a share in the revenue from the business built on your real estate, or building something and selling the LAND and the asset together. Other options are building an advertisement, shop, or game for passive income generation. You can also have a game where visitors pay to play.
Buying stocks from companies focused on building a Metaverse
Buying stocks in companies involved in creating the Metaverse is another way of investing in Metaverse. Decentralised Metaverse is different from the one Mark Zuckerberg proposed, and other companies as well.No one can control anything placed on any land in the decentralised nature of virtual worlds. Decentralisation has some benefits, like owning collectibles forever, and a user’s account cannot be banned.
It has its limitations too, whereby since there is no central governing body, users can post obscene images, incite hatred against a certain group, and/or create any other defamatory content. Meta Platforms is the most recent branded company previously known as Facebook and it is the major reason why people have been talking about Metaverse. Meta Platforms might be the safest option, since it has a big user base of over 3.5 billion across Facebook, Whatsapp, and Instagram. Big profits have been witnessed year after year.
Investing in Roundhill Ball Metaverse (META ETF)
META ETF investments give you the metaverse exposure through investment results linked closely to Ball Metaverse Index. It is the first index in the world designed for metaverse performance tracking. It includes a tiered weight portfolio of globally-listed companies involved in the metaverse examples Microsoft (MSFT), Roblox (RBLX), and Meta Platforms.
The future, closing thought
To sum up, Metaverse has a bright future. In the coming decades, people will spend their time virtually immersed and engaging virtually. Although the technology is still young, it is impractical to use it for long hours more so outside of entertainment. If well nurtured, Metaverse will result in the life improvement of its users.
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