What is the metaverse and what are its growth prospects?

To provide a brief explanation about the metaverse, it is a virtual reality world that can be accessed and interacted with the help of the internet. The objects in the metaverse are in the form of NFTs (Non-Fungible Tokens) which are all unique and different. You can create and modify your own characters and interact with their participants, play games, earn in cryptocurrencies, etc.

The concept of the metaverse was first coined by Neal Stephenson in 1992 in his novel, ‘Snow Crash.’ From thereon, the concept has been implemented and is been developed by several companies.

Growth prospects of the Metaverse

Earlier, the common investment instruments included stocks, bonds, real estate, gold, etc. But in today’s digital day and age, the supply of physical assets is limited but investors are flocking towards digital and virtual assets like NFTs and land in the metaverse. This might sound weird to some of you, but why would someone acquire a virtual piece of asset which is not tangible or does not possess an intrinsic value.

But not only people are purchasing virtual assets but they are purchasing them for millions of dollars. For example,

• The Metaverse Group, which is a Canadian real-estate company bought $2.4 million dollars worth of land in the Decentraland which is one of the most successful metaverses right now.

• ‘Republic Realm’ invested close to $4.3 million in buying digital land on the Sandbox metaverse which was a record-breaking transaction.

Apart from these, investors have spent hundreds and thousands of dollars to get digital land and objects that are only accessible on the metaverse.

This tells us the metaverse is going to be really really big in the near future. The whole concept of Web 3.0 will allow two-way communication, decentral control, virtual economies, and much more. People are already investing a substantial amount of time-consuming digital content. Additionally, gamers invest a substantial amount of money modifying their character’s abilities to earn more wealth inside the game. But what if the same wealth generated by you in the game can be spent outside in the real world?

This is possible in Web 3.0 or in the metaverse, where you will be able to earn cryptocurrencies by watching content or playing games. You will be also capable to spend these tokens in the metaverse for other objects or out in the real world.

According to the above chart, the estimated potential of the global metaverse market is in trillions, as calculated by Grayscale Investment Trust.

At present, Web 2.0 metaverse games that include GTA, Fortnight, Counterstrike, etc are worth over $14.8 trillion in market cap. To get a perspective, the currency market cap of Web 3.0 metaverse is a mere $0.3 trillion.

Now, imagine if these Web 2.0 metaverse companies shift towards the Web 3.0 metaverses. Therefore, the true potential of the metaverse can be exceedingly higher than that of Facebook and other eSports companies if everything plays right.

How can you invest in the metaverse?

By looking at the astronomical future growth prospects, you must already be convinced to invest in the metaverse.

There are multiple fronts where you can invest in the metaverse. Starting from owning metaverse cryptocurrencies, you can purchase virtual assets in the form of NFTs. These can range from collectibles, objects all the way up to virtual land.

If you have purchased a piece of land in the metaverse, you can receive additional income from the piece of land by creating a commercial property on top of it. These include,

• Virtual Museum, Art Galleries.

• Offices for Metaverse companies.

• Casinos and other Gaming areas

• Advertisements and paid sponsored content

• Host contests and events.

There are also unlimited possibilities in which you can invest in the metaverse. But the question still remains, will these investments make you rich?

Can you get rich by investing in the metaverse?

Now coming to the most burning question that you have been waiting for. Can I get wealthy by investing in the metaverse?

By looking at the upcoming opportunities and possibilities, it can be said that you can definitely get rich by investing in the metaverse, provided you invest in the right instruments. As the whole space grows and more companies enter the Web 3.0 space. The utility of your assets and investments will rise in value with the rise in the underlying narrative of the metaverse.

With the increasing hype in the market related to this space, numerous cryptocurrencies are getting manipulated for abnormal profits for a few. A recent example was that of the ‘Squid-game token’, which turned out to be a total scam. The creators dumped all of their coins after a substantial rise, which caused all the investors to lose their investments in the process.

To evade such traps, try to identify sound projects with good future prospects and invest in them. Also look for companies where prominent corporations are engaging in, like Decentraland, Sandbox, etc and invest in such projects. In this way, you will capitalize on an expanding market that has immense growth potential. But also remember that this technology is in its early stages henceforth, countless new companies will emerge that will have equally good potential. Therefore, it is best to spread your bets on different companies and also do not go all-in at this moment. Allocate only a small of your portfolio so that your overall risk in this space is limited.