How to Invest in the Metaverse in 2024 and Should You?

SHORT ANSWER: The metaverse is a new frontier full of opportunity. To capitalize on the growth potential, investors can purchase stocks and ETFs of companies involved in the metaverse or purchase metaverse NFTs and cryptocurrencies.

The metaverse, which seems like a concept from science fiction, is materializing in the real world. It is an emerging industry poised to grow, making it an excellent opportunity to get in on the next big thing early. Some people paint the metaverse as a magical utopia or dystopian nightmare, but it is also viewed as a new frontier enabled by technological advancement, presenting new opportunities and challenges. 

What is the Metaverse? 

The simplest way to think about the metaverse is to compare it to a digital playground. The metaverse relies on virtual reality (VR) and augmented reality (AR) to create digital experiences. The metaverse entails unique interaction with computer-generated environments and people, seeking to be an extension of our current reality. The metaverse isn’t limited to specific applications or use cases. It is a digital environment with applications built inside, including chat rooms, video games and real estate. The metaverse is composed predominantly of entertainment applications; however, the metaverse has a host of use cases that can impact business, ownership and how people interact with each other. The efforts to move toward this future have been underway since the early 2000s, but the significant technological improvements made in recent years have been a big catalyst for growth.

How the Metaverse Works 

The metaverse provides a novel way to interact with technology. VR and AR are used to create digital 3D worlds, ranging from games like Roblox to Microsoft’s Mesh — a platform that enables immersive collaboration between teams. Individuals interact with these environments through headsets, smartphone apps and other devices. VR allows users to interact with virtual surroundings using visual and audio inputs, which can be made even more realistic through haptics using gloves, vests and suits. AR is less immersive than VR and acts as an overlay to the real world rather than a complete transportation. Presently, these are the primary interfaces used to access the metaverse. 

For example, CEEK is a metaverse platform that uses smart contracts to tokenize tickets used for transactions. Creators and users engage and experience each other in the metaverse through their VR headsets. CEEK can also simulate enhanced experiences in the classroom or at sporting events with the 360 VR and AR capabilities. CEEK borrows decentralized functionalities (DeFi) and combines them with VR inside the metaverse, creating a unique experience for users and creators. 

Why Invest in the Metaverse? 

The metaverse is a new frontier in technological advancement. It is not completed and is being contributed to continually, creating a massive opportunity. The metaverse could create a new economy where new and old digital and physical goods and services have a market. Getting into the metaverse now could be like buying into the early stages of the internet, mobile technology or social media. Just as those innovations seemed far-fetched, they revolutionized how people interact with the world around us. Capitalizing on early trends is a riskier strategy; however, the upside is potentially sky-high. According to Statista, the metaverse market is projected to be $74.4 billion in 2024 and $507.8 billion representing a 37.73% CAGR. Fairfield projects the market will be over $767 billion in 2030, representing a 42% CAGR. Many predict the market will grow, but because the technology and its applications are so unprecedented, it is hard to know what the future will look like. By educating yourself and investing in the metaverse now, you can benefit from the massive growth expected to occur in the coming years. 

How to Invest in the Metaverse: 5 Ways 

If your interest has been piqued, there are a few ways to invest in the metaverse. Before making decisions, research and understand the risks involved with each. 

Metaverse Stocks

A traditional approach to investing in the metaverse is to purchase shares of companies involved. Doing this gives you a way to expose yourself to the opportunities it provides without needing to be directly involved. Companies allocate varying resources to deploy in the metaverse. Investors can choose companies' stocks based on their preferred involvement in the metaverse while minimizing risk from directly investing in it. The most notable companies investing in VR/AR and the metaverse include Apple, Meta, Microsoft and NVIDIA. One of the best brokerages to purchase these stocks is Robinhood — a reputable platform with a seamless user experience. 

Metaverse ETFs

Metaverse exchange-traded funds (ETFs) can be a great way to diversify your exposure to the metaverse. ETFs allow you to own small percentages of multiple companies, decreasing risk and potentially capitalizing on diversified gains. Think of ETFs as a basket with multiple eggs inside. If one breaks, you still have many more to hold you up. Metaverse ETFs are a new product originating in 2021, meaning there isn’t a lot of historical data.

Here are some of the most popular metaverse ETFs: IShares Metaverse (IVRS), The Roundhill Ball Metaverse ETF (METV), Global X Metaverse ETF (VR) and Fount Metaverse ETF (MTVR). Most ETFs hold large-cap companies like Apple, Meta, NVIDIA and Microsoft and each ETF has its strategy for selecting other constituents. Each may focus on companies designing virtual worlds and assets, supplying computing power and payment processing for the metaverse. You should research the holdings and key metrics of the ETFs before purchasing. 

Metaverse NFTs 

The metaverse is expected to occupy a key place in Web 3, with blockchain technologies providing the infrastructure for value exchange in the metaverse. One of the ways this is implemented is through non-fungible tokens (NFTs), which represent unique digital assets that can be bought and sold in the metaverse. These can range from in-game items to art and virtual real estate. The metaverse will emphasize digital ownership through NFTs, an essential attribute of Web 3. The most common NFTs in the metaverse are proprietary game accessories such as avatars, accessories and digital real estate. These can be purchased through their corresponding applications and exchanges.

Metaverse Real Estate

Investing in digital real estate in the metaverse is an alluring investment strategy. Predicated on the real-world scarcity of real estate, the metaverse is the next extension of our reality, and the space inside could be valuable. NFTs are used to represent ownership of this digital land. Some of the most popular metaverse real estate applications include Decentraland, Somnium, The Sandbox and Cryptovoxels. 

For example, Decentraland runs on the Ethereum blockchain and allows users to purchase LAND in parcels, which can be used to develop and build environments. Like traditional real estate, digital real estate is heavily based on supply and demand. To ensure scarcity and drive up the value of LAND, Decentraland has limited the total supply to 90,601 parcels. If demand for digital estate outweighs supply, it could be one of the most significant opportunities inside the metaverse. 

Metaverse Cryptocurrencies

Metaverse cryptocurrencies are tokens specifically used within blockchain-enabled metaverse environments. Acting as the medium of exchange, if a metaverse app boasts a lot of user interaction through the token, it could lead to increased value. One of the most popular metaverse cryptos is MANA, used to buy LAND parcels in Decentraland. SAND is the native coin on The Sandbox, another popular metaverse environment where users can buy, sell and develop digital land. Check out this article for an extensive list of metaverse cryptocurrencies with high upside potential. 

Companies Investing in the Metaverse 280

The metaverse promises the next generation of interaction with the world and technology, sparking interest and investment by many companies. Here are some of the most notable companies investing in the metaverse:

• NVIDIA: Launching Nvidia Omniverse in 2022 for developing apps in the metaverse, NVIDIA believes there is a lot of potential for the metaverse and seeks to support development. 
• Meta: Previously known as Facebook, CEO Mark Zuckerberg changed the name to emphasize they will be “metaverse-first, not Facebook-first.” Although Meta has taken nearly $30 billion in losses during 2022-2023 across its metaverse, it still spends a lot of resources towards the cause with its VR headset line, Meta Quest, leading the way. 
• Apple: With the recent release of the Apple Vision Pro, which boasts VR and AR capabilities, Apple is actively seeking to position itself in the metaverse industry. 
• AWS: The world's largest cloud service provider plays a massive role in computing, storage, database, networking, AI and blockchain services. All will be necessary to support companies’ VR and AR developments, and AWS has positioned itself as the go-to. 
• Epic Games: The creators of the Unreal Engine software for game developers and the game Fortnite have partnered with the Walt Disney Company for metaverse initiatives. In 2024, Disney acquired a $1.5 billion equity stake to revolutionize experiences through the metaverse.
• Google: Positioned as a tech leader in many domains, Google has a few metaverse initiatives, such as Project Starline, which seeks to blend the metaverse and the natural world through AR. 
• Microsoft: With various VR and AR products, such as Microsoft Mesh for teams and Xbox cloud gaming apps, Microsoft uses its expertise in Cloud, blockchain and AI capabilities to enhance metaverse experiences. 

What is the Future of the Metaverse? 

The future of the metaverse is an exciting yet complex prospect. While some envision it as a utopian escape from reality, others fear it will turn the world into a dystopia where people get overly involved in virtual worlds. Likely, it will play out somewhere in between. As with any new technology, the metaverse will bring both benefits and challenges. VR and AR  have the potential to revolutionize the way people interact, work and play. With the connection of blockchain, the metaverse could be an incredibly unique evolution of technology. While it is hard to predict what will come, the metaverse has far-reaching applications beyond virtual worlds, transforming industries such as education, healthcare and commerce. As an emerging market, the metaverse can present unique investment opportunities for those who can navigate the frontier. 

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