Metaverse: what is it and how to invest?

When Mark Zuckerberg announced the Metaverse, people all over the world were in awe. As the company announced, it would usher in a new era of digital interactivity that can change society as we know it over time. For investors, however, it showed more than that. 

Well, this is all very new technology that has yet to be introduced in a few countries. This means that investors are still getting their footing on how to turn the Metaverse into passive income.

While we wait for the next generation of devices that should allow everyone to interact with online ideas, let’s find out what this means for the investment world!  

What is Mark Zuckerberg’s Metaverse? 

Everything started when Facebook, in an attempt to take the spotlight away from many scandals involving users’ privacy, started a rebranding process. The company that we all know and love for its big F logo was turning into Meta Corporations. 

The rebranding came with new visuals (now an infinity loop) and vision: to invest in the metaverse, a brand new world of interactivity. 

In reality, metaverses have been around for a while and were just waiting for a chance to capture the public’s eyeballs. The idea is to merge the online and offline until they become almost seamless. For that, accessories like VR headsets would allow you to operate online through an avatar. 

But the real question is, what does this virtual reality have to do with investing? There are some gurus that already consider this the future of making a living. 

Why is the Metaverse so important?

Most people are still trying to get their footing in the Metaverse, but global companies already consider it quite important. Nike, for example, purchased land in virtual reality and started its own projects of virtual clothing. While this might seem almost like sci-fi, there are real investment possibilities. 

Everyone in the market expects it to be big and impact peoples’ lives greatly. The problem is: not many people are sure how, when and where, which makes it hard to know where there’s actually profit possibility. 

This comes with a trend that was sped up by the COVID-19 pandemic: a shift from physical to digital lives. In just a couple of years, thousands of companies adapted to online meetings and work groups. The same happened to schools, concerts and even chatting with friends over a beer. 

To make everything even better: cryptocurrencies are already a thing and have been for about ten years. Everything lays the foundation for a successful Metaverse where buying and selling property is simple and fast. 

How to invest in the Metaverse?

Every day new investment ideas for the Metaverse come up, luring tech companies and finances enthusiasts alike. There are many areas in which to put your assets, and hopes, in this world. Digital gaming, for example, is expected to surpass US$400 million in profits by 2025. 

Do you want to know where to start? We selected a few places that are already booming in the Metaverse and that deserve your attention. 

1. Metaverse stocks

For now, the Metaverse is safest when it comes to stocks. After all, traders already know how they work and the behavior of the market. One thing is true, these stocks are going through the roof most days, helping investors get great returns, as long as they can endure some risk. 

We selected a few companies with business models that are linked to the Metaverse. This means that, as this system of interactivity grows, so should their stocks over time. 

Meta Platforms Inc. 

Are you a fan of Facebook? Well, that name is in the past now since the company was rebranded as Meta Platforms Inc. Not only is it responsible for a digital reality platform, Horizon Worlds, it’s also released a widely popular VR Headset. 

However, social media is still Meta Platforms Inc main strength. The market has yet to react to the augmented reality products the platform is putting out. Investors that want to make a profit have a chance to buy in early.

Roblox

Anyone within the gaming community knows a little bit about Roblox. This online metaverse platform allows gamers to create and share virtual worlds with each other. Unlike Meta, which is still dipping its toes into the virtual reality market, Roblox has been around since 2006. 

So far, the platform reports having about 49.4 million active users daily and it’s user base is still growing. That doesn’t mean Roblox’s stocks are a sure win, profits aren’t part of its system yet, but they might be just around the corner. 

Boeing

What is this airline and airship company doing in our Metaverse related stocks list? Putting it simply, Boeing is one of the first companies that are attempting to use the Metaverse to integrate development teams all over the world. The project is still in its inception, but this could turn out revolutionary for the whole industry. 

Microsoft

Just like Boeing, Microsft believes that its niche in the Metaverse world lies within professional integration. There are plans to release Mese for Microsoft Teams, which uses VR Headsets to allow better integration for online teams. It’s still unclear whether this idea will work or even be released for most of the public. But it’s worth a shot. 

2. Metaverse lands

The Metaverse is still an idea for many people, but some companies are investing in digital land already. Decentraland and The Sandbox are the main sellers right now and seem to be turning quite a profit. Some news shows that one of the most expensive pieces of land in Decentraland was sold recently for US$2 million! 

Big names in the market are rumored to be making investments in metaverse real estate, like McDonald’s, however that is still to be confirmed. 

NFTs

Metaverse land is based on NFTs, tokens that show property for a digital item, such as artwork or real estate. After an owner has NFTs, they can use the property whichever way they prefer, such as renting it out or creating a business in the virtual reality. Atari, for example, purchased real estate to create its first virtual casino. 

3. Metaverse crypto

Blockchain enthusiasts are having the time of their life investing in the Metaverse! Fungible tokens are a type of currency that allows users to buy items in the Metaverse, thus their value for anyone looking to invest in this area.

There are many types of currencies in this virtual reality. In theory, buying cryptocurrencies related to the Metaverse now means that you’ll have desirable coins once digital assets become the norm. 

Decentraland

Decentraland uses a cryptocurrency called MANA for buying and selling NFTs. Once users employ tokens to buy property, be it digital assets, land or even art, the token disappears which makes the remaining ones even more valuable. 

Axie Infinity

This is a type of governance token, which means that owning them allows you to vote on decisions that affect Infinity’s ecosystem and virtual reality. While the community has plans to modify these tokens to allow them to buy property, that isn’t in the foreseeable future yet. 

The Sandbox

This is a multiverse, a lot like Roblox, that has a token called SAND. Some users received currency for participating in the alpha test version of the multiverse, while others purchased them through conventional methods. It can be used for buying items, but also allows governance and other services within the platform. 

Enjin Coin

Enjin has a lot of interconnected play-to-earn games that make up its virtual reality. Each of its cryptocurrencies (ENJ) is fused with NFTs, which is as close as crypto has gotten to becoming a real world currency. 

What is the future of investment in the Metaverse?

The Metaverse is still far from being a widely used and accessed system. While big tech companies are using millions of dollars to convince the public that this is the future, users aren’t so sure. There are basic barriers when it comes to technology accessibility all over the world, which could mean that massive adoption should take a while. 

For investors, this means that buying into the Metaverse now doesn’t guarantee gains in the short term. It is a bet that could pay off in the next five years or bomb completly, only time will tell. 

Is investing in the Metaverse risky?

Like any other type of investments, the Metaverse has its own types of risks. Recently, a hacker attack on Lympo cleared out ten wallets totalling about US$18 million in cryptocurrencies. This reminded the public that investing online can become incredibly risky when we are taken by the hype and forget that digital security isn’t perfect so far. 

Lack of digital safety

Unless you work from a server that really belongs to you and rarely access third party websites, digital safety is sketchy at best in most countries. Hacking, identity theft and thousands of types of scams are common online and NFTs and cryptocurrencies communities quickly became some of scammers favorite targets. 

While Metaverse communities claim to be free for all and inclusive, there haven’t been many attempts at making them safer. The way that they address this issue should be one of the major factors that contribute to their growth or losses over time.