In recent times, the introduction and adoption of the Metaverse has been on a constant increase. From improved entertainment experiences, streamlined money access, to creative ways to represent individuals and businesses online, there is hardly anything that Metaverse does not promise to do.
In the era of end-to-end digitalisation and automation, the Metaverse is becoming a real investment opportunity for people who wish to enter the world of changing dynamics. Our article will look at if now is the time to invest in the Metaverse.
What is the Metaverse?
The Metaverse is a virtual platform or world where businesses, individuals and other digital platforms can connect, exist and interact as if they were all real. It includes virtual gaming platforms, social events, non-fungible tokens (NFTs), and more. The Metaverse is almost like science fiction turned into reality that allows people to live in a world of virtual reality and exist in that particular world through artificial intelligence.
Investors’ shift to tech-based platforms
Right now, the IT sector has been booming, and over the last decade, investors have shifted their investments greatly to tech-based companies, platforms and content. This is because technology is one thing that is never going to go out of fashion. It keeps on improving, enhancing and getting better. This is why it is one of the most sought-after industries by investors.
In addition to this is the introduction of the Metaverse, which has turned heads, especially those of the investors. The Metaverse is made to build awesome things, live in the future and connect the world. Almost 10 billion US dollars are being spent annually in order to build a visionary future, where 117 billion US dollars were already earned as revenue in 2021.
The virtual world that lets you connect with people across the globe through an avatar is definitely a seismic change in how people understand life and investors understand investments.
Big businesses entering the Metaverse
Big names like Amazon and Tesco have already entered the Metaverse as they allow browsing and virtual shopping through the virtual world. Not only that, luxury brands like Gucci and Louis Vuitton have also announced that they plan to sell their very own non-fungible tokens that can be used to dress up and accessorise your avatars. If you own a virtual house in the Metaverse world, you can also buy artwork NFTs of talented artists and hang the paintings in your house and enjoy the scenic beauty whenever you want to. Nevertheless, Metaverse is becoming an economy of its own. Even Microsoft invested in the Metaverse by purchasing Activision Blizzard, worth 69 billion US dollars. This was one of the major hits that encouraged investors to start investing in the Metaverse as beliefs were strengthened.
In 2021 itself, virtual goods worth 54 billion US dollars were sold on the Metaverse. It also aims to expand in the area of transactions, where digital currencies will further come into the picture to ease transactions virtually. Almost 25% of the world’s population is said to spend at least one hour every day in this virtual economy.
So, should you invest in Metaverse?
Well, we cannot tell you if you should or should not. This is because the Metaverse is still in its early stage, and there are visible problems to be contended with. Regulatory authorities still are not aware of the threats that may occur and the opportunities that the platform has to offer. It is too early to judge where this virtual economy is headed and what lies in the future.
Most big businesses investing in the Metaverse are following the methodology of testing and learning about the new investments. They are aware that nothing is certain and anything can happen. The Metaverse might crash in the coming months or become so strong of an economy that each one of us wishes to become a part of it.
Although, more and more investors are adopting technology-related platforms and content that has increased opportunities for investors. The first two Metaverse iterations did see significant disrupts to incumbent business models. Hence, it is essential to read as much as possible about this emerging economy before taking the leap of faith and investing in something that has just come into existence. The Metaverse is definitely something – what it is for you, is for you to analyse!
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