What is the Metaverse?
The digital environment. 3-D internet. Alternative worlds and economies. All of those names describe the stylish buzzword of today’s world: the metaverse.
Metaverses use virtual reality, augmented reality, social media, and blockchain technology to create places that people want to spend time in. They are virtual worlds with virtual economies, though many are still in their infancy.
The metaverse is still an evolving concept, but there are a variety of them. Be it Decentraland, Roblox, Sandbox, Cryptovoxels, or Axie Infinity, each of them allows you to do multiple things in their virtual world. Users can shop, study, meet with friends, go to concerts and galleries, and even do business. All users need to have to enter the space are their avatars.
The key thing about metaverses is decentralization. The majority of the existing virtual worlds are built on a blockchain, particularly on Ethereum. This means the smart contracts are governed mostly by DAOs, not by any central authority. Autonomous worlds use cryptocurrencies to run their economies.
Another critical aspect is monetization. Blockchain-based virtual worlds allow users to create digital content, develop it and later sell, rent or trade it to earn cryptocurrencies.
The range of options is wide: from selling in-game avatar skins, to renting digital land or even selling advertising space pixels on them.
How to make money on the Metaverse
Investing in the metaverse industry
The metaverse is a new dimension of the internet. At some point, it can be incorporated into each of our lives. Logically, this is a big opportunity for businesses, so visionary companies are jumping on the bandwagon.
The growth potential of virtual spaces of multi-million users is massive. The native digital currencies of separate metaverses (like Decentraland’s MANA, or The Sandbox’s SAND) have increased in value multiple times over the months.
For those preferring a more traditional investing approach, stocks of metaverse-focused companies are also an option. Tech, gaming, e-commerce and social media giants like Roblox, Unity Software, Microsoft Corp, Amazon, Nvidia, Walt Disney and Facebook revealed their interests in developing their own metaverses. All of them are publicly listed on stock exchanges.
Investing in NFTs
Non-Fungible Tokens (NFTs) themselves are collectibles, and hence speculative assets. Because of technological features, NFTs are unique pieces of digital data which makes them scarce and valuable at some point.
Investors expect their value to rise over time. But although NFTs are trendy, they are also a new type of investment, sometimes at risk of being overpriced.
Blockchain-based games and NFTs enabled a new revolutionary play-to-earn gaming model. The principle here is simple: gamers have ownership and control over their in-game assets and full ability to trade or exchange them for real-world money.
Gaming economies like Axie Infinity are the perfect example of how metaverses can change the real ones. During the pandemic, thousands of Filipinos stormed into the game, grew digital pets, called “Axies,” and traded them online, making more money than in their real-life jobs. Axie Infinity’s (AXS) price skyrocketed by more than 2140% within two months alone.
Metaverses are the next big thing, and are expected to reach a value of $800 billion by 2024. The scale of their current growth leaves no doubt: they are the future and most of us will be involved with them sooner or later.