My investment thesis
The #metaverse is an alternate digital reality where people socialize, work, play and transact as they do in real life. Everything is built on the #blockchain and there are self-contained virtual cities, games and economies that simulate real-world interactions. The metaverse (supposedly) will bridge the gap between the digital and physical worlds, offering new methods of interaction.
From Mark Zukeberg to all major VC firms, everyone has placed a bet on this exciting new world. But there is a catch, for all these next-generation worlds and applications to live their full potential, a number of other businesses have to deliver.
In other words, we could let the market decide if metaverse is a thing as well as which metaverse is to be the dominant one and make some money in the process, without being part of the spat.
In order for metaverse to be realized a number of technology enablers should be in place and this is the investment focus of this account.
For any of us to reach the metaverse we need a handheld device, a computer or game console (e.g. $AAPL , $GOOGL etc.). Such devices will then require some type of high speed internet access, either 5G (e.g. $T , $TMUS , $VZ ) or fiber (e.g. $VZ , $T , $CMCSA etc.). It is also important to note that the 5G part needs access to numerous real estate roofs so as to reach us (e.g. $AMT , $SBAC , $CCI etc.).
As soon as we are done with this step, we need access to wholesale telcos (e.g. $LUMN , $ORA, $T , $VZ etc.), who manage the global terrestrial and subsea cable infrastructure so as to reach the metavrse. Much of this infrastructure is now owned by major private equity firms (e.g. $KKR , $BAM etc.), but new players are joining them in a race for more bandwidth and further reach (e.g. $FB , $GOOGL , $AMZN , $MSFT etc.).
All these data pipes are trying to reach the major cloud providers (e.g. $GOOGL , $AMZN , $MSFT , $IBM , $BABA , $DOCN etc.) that host the metaverse worlds. And many of these cloud providers are hosted on third party data centers (e.g. $DLR , $EQIX , $COR etc.).
For all these to happen there is a need for networking infrastructure (e.g. $CSCO , $NOK , $ERIC etc.) as well as a lot of semiconductors (e.g. $NVDA , $AMD , $INTC , $QCOM , $TSM etc.). The key ingredients for all the above are rare earths (e.g. $REMX etc.). Rare earths are all these rare elements that can be found in hard to reach places in Africa, Afghanistan, China, Australia, Southeast Asia and elsewhere and they are super important for the technology to further progress.
As soon as we reach our “meta-destination” we’d like to live the good life and for that we are going to need access to funds. Such funds could be a combination of payment tools ranging from credit cards (e.g. $MA , $V etc.) to cryptos (e.g. $COIN etc.) and have to be cleared by a payment network (e.g. $SQ etc.).
In my view it would make much greater sense to invest in infrastructure and enablers rather than trying to predict the winners in metaverse space.
### This is not investment advice or endorsement of any particular strategy or investment. Do your own research. ###
#growth #longterm #crypto #invest #cloud #5g #semiconductors #metaverseplay #telecom #datacenter
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