The metaverse has captured the attention of investors and enthusiasts globally. Read on to find out what’s going on beyond the hype, about companies that are investing in the metaverse, and why they are investing in the metaverse.
What is the Metaverse?
A metaverse is a virtual space that combines augmented reality, virtual reality, blockchain, and other cutting-edge technologies that could replace the internet as we know it. It holds the potential to provide numerous opportunities for people to take part in a new digital economy.
Many companies have identified these opportunities and are taking a step to invest in the metaverse.
Why Are Companies Investing in the Metaverse?
Investing is a matter of asserting value in a company.
Within the digital economy of the metaverse, there are and will be new ways to make money or revenue as per different industries. In this way, companies are actively looking at opportunities to build the metaverse and earn from products and services that can be used in the virtual world.
For instance, Meta, which is Facebook’s new name, produces virtual reality (VR) glasses that people use to access virtual spaces and is developing its own metaverse.
However, as an individual investor, you need to explore your options before investing in the metaverse, because it’s still new. It would be a wise move to do some due diligence through research if you’re considering investing in the metaverse.
Who’s Investing in the Metaverse?
There are numerous publicly traded companies currently investing in the metaverse. Since they are publicly traded, you could buy stocks in the companies to add metaverse exposure to your stock portfolio.
Microsoft recently announced a $70 billion acquisition deal of Activision Blizzard, a gaming company that would give it access to bestseller games like Call of Duty. Additionally, it has pitched HoloLens, its product business in the metaverse, to develop a strategic hold in its gaming business. HoloLens is a mixed-reality smartglasses that will have different applications in industries like education, manufacturing, engineering, and health.
Unity Software powers about 50% of PC and console games, which places it among the best companies to invest in this space. Undeniably, they don’t need to build an alternate metaverse, since they have what it takes to power up the existing one! Since Unity acquired Weta Digital for $1.5 billion, they plan on building upon their real-time 3D technology to offer realistic experiences in the metaverse.
Roblox has made it possible for its community of 40+ million daily active users to create their own unique events concurrently and for other users to play the games. For instance, you can have a musical concert and checkers game happening at the same time in the game, with users being able to choose what to do. The company focuses on social interactions that happen in virtual spaces, which is one of the promises of the metaverse.
As a software provider for people to create advanced design tools, Autodesk is another key player in the metaverse. The already profitable company is set to be a virtual playground for engineers who may want to simulate virtual editions of buildings before physical ones. This is also known as creating digital twins, which can be beneficial for designing factories and skyscrapers.
Matterport creates 3D representations of real estate spaces. This allows clients to host virtual tours and interactive property showings to potential buyers. Significantly, this can save home buyers time in scouting for new homes through the metaverse. Although Matterport is yet to monetize its business model successfully, its long-term prospect is promising to investors.
Cybersecurity is crucial in a world where a great deal of our personal information is online.CrowdStrike has invested in cybersecurity, providing data safety for its clients. The company is one of the fastest growing cloud solutions for cybersecurity, and this will only get better with the metaverse’s growth.
Last but not least, for this set of mentions, we have Nvidia. A leading graphics and video games processing chip producer, Nvidia is strategically at the center of powering the metaverse. Not one to be left behind, the company is developing an Omniverse tool to support developers building their applications in the metaverse.
Investing in the metaverse is an exciting venture, as investors want to be in on the potentially next big thing. Beyond the hype, see into the value proposed by this virtual world to find answers on whether you should direct real funds here.
Frequently Asked Questions (FAQs)
Can you make money from the metaverse?
Yes, you can make money from the metaverse as an investor in the companies building the metaverse. You can also buy metaverse cryptocurrencies or non-fungible tokens (NFTs), such as virtual land, in leading metaverses.
Is the metaverse a good investment?
As with other investments, you need to take time and due diligence before you invest in the metaverse, not simply chasing the surrounding hype. Manage your risk and expectations, and you’ll be all set!
Is it risky to invest in the metaverse?
Yes. Being a relatively new venture, the metaverse is still taking shape. The uncertainty could present great opportunities for investment, so take your time to analyze and develop your own investment strategy should you choose to invest in the metaverse.
This guest contribution was provided by Roselyne Wanjiru, one of Kenya’s leading blockchain consultants, a crypto economist, and a senior writer at Rise Up Media.
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