When you observe different entities that comprise the metaverse, AI, Robots, Virtual reality, etc. It might seem like watching a futuristic movie. Yet, the metaverse is not fiction. It is a technology that is already manifesting. More so, a large population of humans, are delving into it.
The previous article about metaverse investment explained how to invest in the metaverse. In this article, you will see 3 reasons why you should invest in the metaverse.
Why you should invest in the metaverse
Giant institutions are backing the metaverse
Just like the previous article explained, stocks are one way to invest in metaverse platforms. Presently global economic meltdown is crashing the price of most stocks.
Investors might seize this opportunity to acquire some shares of mega companies. To do so, you may check out some companies making the metaverse a reality.
Microsoft
In January 2022, Microsoft announced its plans to acquire Activision Blizzard for around $70 billion. This mega deal means that Microsoft would own all the game franchises of the video game developing and publishing company. Therefore, in coming years, Microsoft’s games and software will be available in the metaverse after finalizing its deal with Activision Blizzard.
Epic Games
In April 2022, Sony and KIRKBI invested $2 billion in Epic Games to strengthen its metaverse footprint. Fortnite, one of Epic Games’ platforms, boasts over 350 million users. Fortnite is an example of the potential Epic Games has to attract users into the metaverse.
Likewise, the recent investment and partnership will help Epic diversify its games and target all age groups. Moreover, it will help it enhance its unreal engine allowing Epic Games to offer improved experiences.
Nike
Nike is also among notable brands expanding its horizon in the metaverse. The fashion company recently opened a virtual store on Roblox called Nikeland.
Up to 7 million users have visited this virtual space since its launch. Besides, Nike is also leveraging NFTs for its e-commerce. The brand acquired RTFKT studio, an NFT creator. In February 2021, they produced 600 pairs of NFT sneakers sold out within 6 minutes for $3.1 million.
Notably, big brands are investing significantly in the metaverse. This is due to the large number of users the virtual space attracts. Accordingly, individuals can also benefit by investing in the metaverse through the companies building it.
New economic opportunities of the metaverse
Several business opportunities are already taking shape in the metaverse. Consider three of such options:
Digital real estate
Decentraland, The Sandbox, Somnium space, and Cryptovoxels are the top four metaverses selling virtual lands. Although these platforms are still in their infancy, they made over $500 million in 2021.
Due to the high demand for digital real estate, its value skyrocketed over the past year. A leading cause of this increased demand is the need to create more games on blockchain-based metaverses. Likewise, people are beginning to purchase virtual lands in anticipation of a world where their virtual presence is inevitable.
When the metaverse gets to a stage where it is as essential as the internet, virtual lands will become like natural land today. A necessary asset with high value. Of course, investing in the metaverse is the key to reaping from the potential profits that digital real estate can return.
New revenue streams
Play-to-earn games like Axie Infinity, Alien Worlds, League of Kingdoms, etc., offer players and investors an additional source of revenue. They often reward players with NFTs and cryptocurrencies, which players can exchange these digital assets for real money. More so, players may decide to keep those blockchain assets as investments.
At the same time, investors can leverage two things in the play-to-earn industry. Firstly, some blockchain games require that players purchase expensive non-fungible tokens to start playing. Meanwhile, they also allow players to rent these NFTs. So, those with enough liquidity can grow a revenue stream by purchasing those NFTs to rent them out.
Secondly, and more importantly, those non-fungible tokens are long-term investments as long as the game is sustainable and can last for years.
Immersive entertainment
Lego, Disney, and Roblox are some companies offering immersive entertainment in the metaverse. Lego, on its part, focuses on providing children of different ages with virtual spaces where they can socialize and entertain one another.
In like manner, Disney is planning to use blockchain technology to improve its entertainment model and storytelling. This next-gen storytelling space would be a metaverse.
Roblox, another big player in the gaming world, has 67% of its active users as children below 16. Since it allows creative ideas of independent game makers, Roblox continues to pull more users and investors.
Positive Impact of Blockchain and Cryptocurrencies in the metaverse
Investing in crypto assets of metaverse platforms is similar to purchasing their shares. Consider the past performance of two metaverse assets in 2021:
GALA
Gala Games started operating in September 2020. Currently, it is developing 14 blockchain games and hopes to create more. Meanwhile, each of them has unique designs and may support full immersion through VR in the future.
GALA is the native cryptocurrency of Gala Games. In 2021, the token saw over 30,000% gain, reaching an all-time high of 0.837 in November. The GALA token could make such a huge run because Gala Games continues to build its metaverse ecosystem.
AXS
Sky Mavis, a Philippine-based game company, developed Axie Infinity in March 2018. Its gameplay involves players collecting digital pets called Axies.
You can use these Axies to battle other players’ digital pets. Axie Infinity’s cryptocurrency started as low as $0.123 in November 2020, reaching a high of $164.9 within a year.
Conclusion
As analyzed in this article, data shows that metaverse and other cryptocurrencies can produce high returns in the long term. Meanwhile, blockchain technology has unique features that could benefit those who plan to invest in the metaverse.
For instance, decentralization ensures that third-party individuals or government organizations cannot influence metaverse transactions. Further, blockchain security provides encrypted information that is impossible to alter.
In conclusion, the metaverse could replace most aspects of the internet, and a considerate population of the world will become its participants. Obviously, such an industry can pull tons of liquidity and investments. Consequently, investing early in the emerging metaverse before it becomes full-blown is worth considering.
