Table of Contents:
- What is the metaverse?
- Understanding the metaverse
- Ways to invest in the metaverse
- How to invest in the metaverse
- Metaverse stocks to consider
- Metaverse stock FAQs
- The bottom line
You may have read the term “metaverse” around the internet, or maybe it’s the first time you’re hearing the term. However, one thing we all have in common is that we still don’t know what metaverse means exactly or what its purpose is.
The metaverse was first conceptualized by the author Neal Stephenson in 1992. The term originated from his sci-fi book titled Snow Crash. In the book, the metaverse was a virtual reality experience individuals could explore to escape a dystopian world. Minus the dystopia, the idea of the metaverse today (and what it will eventually entail) might not be far off from this concept. The metaverse may be similar to the physical world, where all the things that are done in our everyday reality could be done in the digital world.
You may be thinking that parts of the metaverse concept sound familiar and that it already exists in video games that offer virtual worlds (or virtual reality (VR) experiences)—and you’re partially right. However, the metaverse, as complex and pre-developed as it is, might be an experience with more offerings than the average virtual reality video game.
Here’s what you should know about the metaverse and what you should consider before investing in metaverse stock.
Key Takeaways:
- The metaverse is a virtual world that combines things like virtual reality, augmented reality, high-speed internet connections, and eye-tracking, where humans can interact with the virtual universe and each other through 3D avatars.
- Metaverse stocks are metaverse companies that are contributing to building the metaverse.
- Investors can invest in the metaverse through stocks, non-fungible tokens (NFTs), or virtual land.
What is the metaverse?
The metaverse is defined as a 3D version of the internet that is similar to reality, but rather a virtual world where humans will be able to interact with the virtual universe and each other through 3D avatars. The metaverse will combine things like virtual reality, augmented reality, high-speed internet connections, and eye-tracking. While there are platforms that offer virtual worlds, the metaverse may be a re-imagined extension of these worlds.
Understanding the metaverse
The metaverse is expected to grow the digital economy, which will ultimately impact the growth of the global economy. Although the metaverse’s development, functionality, and what it offers continue to be defined and may vary depending on who you converse with, it’s based on the idea that individuals can immerse themselves in a virtual world that’s interactive and hyper-realistic. Parallel to our everyday lives, the metaverse will allow individuals to shop, eat, shower—even get married—through their 3D avatars. It’ll also be a place where people can conduct business, buy land, build structures, entertain friends, host parties, and even earn a full-time income.
Metaverse examples
While examples of the metaverse can be found on existing platforms, the overall future of its concept and what it will offer is in constant development. It may potentially be all-encompassing, allowing users to interact between different meta platforms and take their virtual clothes, cars, or other items from one platform to another.
3D Education, however, is one of the focal points for the metaverse. Individuals might be able to get a more immersive educational experience. Whether through a college course or certification program, the metaverse might allow a more hands-on experience. For example, a dental school or mechanical engineering program may have certain requirements for graduation requiring practice in the field. In an engineering program, the metaverse might allow individuals to virtually work on a vehicle; a dental school student may be able to gain educational insight by practicing a dental procedure in the metaverse. In fact, this type of immersive educational experience has already been conducted. Ibrahim Baggili, Ph.D., the founder of the University of New Haven’s cyber security research and education group, teaches virtual reality, security, and forensics through VR headsets. Ibrahim partnered with an Irish company, Immersive VR Education, to provide students with an immersive experience on a crime scene in order to teach them how to investigate and document the crime scene in VR.
Just like our everyday economy sustains itself, the metaverse is a digital world that has its own virtual economy and can support itself through things like digital assets (NFTs), 3D avatars, games, businesses, events, etc. These are all things that individuals are able to explore from their home, as the metaverse is located on the internet, and more specifically, web3, which is an iteration of the internet that’s recorded on a blockchain. This means that the metaverse can be accessed via an internet connection and by using compatible electronic devices. As mentioned earlier, examples of the metaverse can be found on existing platforms such as Roblox, the Sandbox, Decentraland, Somnium Space, and more. However, some experts believe the future of the metaverse and its potential is endless, while others remain skeptical.
Ways to invest in the metaverse
When learning how to invest in stocks, metaverse stocks may add a new playing field to investing in the stock market. There are 3 different routes investors can take to invest in the metaverse, including through stocks, NFTs, or virtual land. Metaverse stocks are a way for investors to invest or purchase shares in a metaverse company. This means that investors can invest in companies that are contributing to the development of the metaverse. NFTs are another way that investors may choose to invest in the metaverse, which are interchangeable and irreplaceable non-fungible tokens that exist on the blockchain. NFTs allow individuals to create virtual assets such as digital photos, artwork, photography, etc. These assets may increase in value over time as the metaverse becomes more accessible or popular. Investors may also choose to invest in virtual land or real estate. An example of this might be seen in digital spaces like Sandbox, which is a virtual world or meta platform where players can build, own, and monetize their gaming experience. Investors may choose to buy land or property on the Sandbox platform and turn it into a profit by renting it out.
How to invest in the metaverse
Now that we’ve established the 3 ways to invest in the metaverse, you may be wondering how to buy metaverse stock today. Let’s go a little more in-depth about these 3 investment channels.
Being that the metaverse is recorded on a blockchain, the currency that’s accepted in its virtual economy is known as cryptocurrency, which is a digital currency. The cryptocurrency that can be used may depend on the specific metaverse platform. For example, the meta platform Decentraland uses a cryptocurrency titled MANA, while another may use a more common cryptocurrency like ethereum. Depending on how you choose to invest in the metaverse, it’s important to understand how cryptocurrency works, as this is the only way to invest, create, and purchase NFTs.
Invest in metaverse NFTs
As mentioned earlier, one way to invest in the metaverse is through NFTs. The metaverse as a whole is NFT-based, which means that all the items that exist in the metaverse, from artwork and photos to virtual cars, clothes, land, etc., are NFTs. If an investor owns any of these forms of digital assets, they can’t be stolen or duplicated because of the blockchains’ ability to prove each individual’s ownership of the item.
An investor can invest in NFTs by creating, marketing, and selling an NFT on a metaverse platform or purchasing an NFT that they believe has the potential to increase in value over time. In addition, NFTs also have the ability to earn passive income. For example, if you create an NFT in the form of artwork and decide to sell it with a 6% royalty fee, you can earn 6% in royalties every time it’s sold and traded in the NFT marketplace. In general, NFTs can usually be purchased by using a cryptocurrency platform. Here’s how you can get started investing in NFTs:
- Download a cryptocurrency wallet.
- Browse and get familiar with an NFT marketplace.
- Load your crypto wallet with the required cryptocurrency.
- Purchase your NFT.
Purchase digital real estate
Another option for investing in the metaverse is to purchase virtual land on a meta platform. When your virtual land is rented or lent, you can earn income through rent fees negotiated with virtual renters and implemented through smart contracts on the meta platform. Similar to the real world, buying virtual real estate on meta platforms can also result in profit once it’s sold. The Secrets of Satoshi’s Tea Garden was virtual land made on the meta platform Decentraland, which comprised 64 individual plots of land. In 2019, it sold for 1.3 million MANA or about $80,000. As previously mentioned, Decentraland is a platform that allows users to purchase from virtual land. Other metaverse platforms may include Somnium Space, Sandbox, and Cryptovoxels. Here’s how you can get started investing in digital real estate:
- Download a cryptocurrency wallet.
- Choose a metaverse platform to buy directly into the metaverse or choose a third-party platform.
- Click “buy” on the land you wish to purchase if it already has a set price or make an offer to be accepted or rejected by the owner.
Buy metaverse stock
Metaverse stocks, as previously mentioned, are another way to invest in the metaverse. Whether you are investing in technology companies, software companies, or companies that are contributing to the expansion of the metaverse, these are companies that you can invest in individually or even through exchange-traded funds (ETFs), which allows you to balance your risks by adding a mix of metaverse companies in your portfolio. This mix of companies may range from hardware companies that are providing compatible hardware for users to participate in the metaverse, internet companies that are providing high-speed connections for the metaverse, 3D software companies that are participants in building the virtual world, or manufacturing companies that make computer chips for these types of virtual worlds to exist. Metaverse stocks and ETFs can be purchased through a regular brokerage account. Here’s how to get started:
- Download the Public app, and open an account.
- Visit our metaverse Themes page for metaverse stocks.
- Browse the metaverse stocks.
Metaverse stocks to consider
If you’re looking for some of the metaverse stocks to buy right now, you can research metaverse companies to consider using Public Themes.
As mentioned earlier, there are a variety of metaverse companies that you can invest in that are contributing to the future of the metaverse, including Meta (formerly known as Facebook), Unity, Matterport, Nvidia (Nvda), Roblox (Rblx), Microsoft, Apple, and others. Whether or not these companies are good metaverse stocks for your portfolio depends on your individual research on the company, your portfolio goals, and what type of metaverse companies interest you as an investor.
Where to buy metaverse stock
You can research metaverse stock using the Public app. For a metaverse stock list, visit Public’s Metaverse Theme page for more information.
Metaverse stock FAQs
- Q: Can I buy stock in the metaverse?
Yes. There are many companies that are contributing to the continuous development of the metaverse. To invest in metaverse stock, it’s important to measure the benefits and risks as well as to research the different metaverse companies. When you’re ready, follow the above actionable steps to find metaverse stocks on the Public app.
- Q: What companies are developing the metaverse?
As previously mentioned, there are many companies that are participants in the development of the metaverse. However, it’s essential to conduct research to gain more insight into each company.
- Q: What’s digital real estate?
Digital real estate is real estate or virtual land/property that can be bought in the metaverse or on metaverse platforms.
The bottom line
Just like the 1992 book Snow Crash that coined the metaverse term, the metaverse may feel like a foreign concept. However, this isn’t the first time foreign concepts have landed–the rise of the internet in the early 2000s was something that some predicted wouldn’t stick, yet here we are with the internet at the center of our society.
The metaverse as the next plan for the progression of the internet may be something that we all will be active participants in, or it may simply remain a concept that never reaches its full potential.
Therefore, your approach to investing in metaverse stocks should be the same as with any other stock–research, evaluate the performance of the stocks, measure the benefits and risks, and invest based on your interest and personal goals. Get the Public app today to learn more about metaverse stocks.