• May 26, 2024
technorious, technorious blog, tech blog

In the October of 2021, the biggest social media tech giant Facebook changed its name to Meta. The announcement was accompanied with the plans to spend a hefty sum of $10 billions in the next year on the progress of the development of futuristic technologies to enlarge its vision of the metaverse. This alone is an advocate for the lucrative future of the Metaverse and Metaverse stocks. Before we look into the investing opportunities in the metaverse, let’s go through an introduction and brief working mechanisms of it.

Introduction to Metaverse

The Metaverse is a user-generated virtual world that combines the best of the physical and digital worlds. It is a shared, persistent, 3D virtual world that can be explored by anyone with an Internet connection. It is powered by blockchain technology and is backed by a digital asset, the Metaverse Token (MVT). The Metaverse Foundation, headquartered in Singapore, is the non-profit organization that governs the Metaverse. The Metaverse Roadmap is a 100+ page document that outlines the current state of the metaverse and provides a vision for its future. It consists of three phases of metaverse:

Phase 1: The Digital World, Phase 2: The Virtual World, and Phase 3: The Metaverse.

A metaverse is a persistent, online, virtual world that is built through the collective effort of its participants and can be used for socializing, entertainment, and working. It is a shared digital space where people can meet, interact, and create. Unlike traditional virtual worlds, a metaverse is not controlled by a single company or individual. Instead, it is a decentralized system that is built and maintained by its users. Metaverses are typically hosted on powerful servers and accessible through the Internet.

Historical Information

The term “metaverse” was first coined by Neal Stephenson in his science fiction novel Snow Crash (1992). In the book, the metaverse is a three-dimensional virtual world that is populated by avatars, or digital representations of people. Stephenson described the metaverse as a “synthetic reality” that would eventually become as important as the physical world. Since the publication of Snow Crash, the concept of the metaverse has become a popular topic in the fields of science fiction, gaming, and online communities. The popularity of the metaverse has led to the development of several real-world equivalents, such as Second Life, Avatar Reality, and Blue Mars. These platforms allow users to create and inhabit digital spaces that are similar to the metaverse described in Snow Crash.

Comparison with Other Virtual Worlds

Metaverses are often compared to other virtual worlds, such as massively multiplayer online games (MMOGs). However, there are several key differences between the two. For example, metaverses are designed to be more realistic and allow for more user-created content. In addition, metaverses are not limited to a single game or genre but can include any type of virtual environment.

The potential uses of metaverses are vast. They can be used for socializing, entertainment, business, education, and more. For businesses, metaverses can provide a unique way to promote and sell products or services. They can also be used for training and simulation. In education, metaverses can be used as virtual classrooms or laboratories. And in entertainment, metaverses can be used for gaming, movies, and television. The development of metaverses is still in its early stages. However, there are already a number of companies and organizations working on creating and enhancing these virtual worlds.

How Metaverse Works?

There is no one answer to this question as the Metaverse is still in development and its functionality is still being determined. However, one proposed use for the Metaverse is as a decentralized platform for virtual reality (VR) and augmented reality (AR) applications. In this usage, the Metaverse would provide a shared space in which users could interact with each other and with digital content in a realistic and immersive way.

The Metaverse is a virtual world that is created by the collective imaginations of its users. It is constantly expanding and evolving as new ideas and concepts are added to it by its users. The Metaverse is not a single place, but rather a collection of many different virtual worlds that are all connected to each other. It is a place where anything is possible and where you can be anyone you want to be. That means you can even customize your own self as an avatar and live a digital life in a Metaverse.

Not only that, users in a Metaverse can also buy and sell digital real estate. For example, a plot of a virtual land, digital identities; such as NFTs, smart contracts, and other assets using cryptocurrencies. Being a blockchain platform, Metaverse provides a decentralized way of storing and exchanging data and allows for secure, transparent, and tamper-proof transactions.

Metaverse Stocks

Often confused with the investments that we do inside of a metaverse, Metaverse stocks are the companies which are investing in the development of the metaverse. Metaverse stocks has become one of the trending topics on the Wall Street, and one of the most followed trends in the financial markets as well. The main reason for being such a hot topic in the financial markets is the revenue opportunities that the metaverse offers.

According to a report by US Global Investors, the revenue opportunity estimated in 2021 was around $1 trillion. Being developed into a whole technological industry, the metaverse has attracted the biggest tech giants towards itself. Here is the analysis of companies which invested in the metaverse and became the top 3 metaverse stocks.

Meta Platforms Inc (META)

Meta Platforms, Inc. (NASDAQ:META), the tech giant led by Mark Zuckerberg changed its name from Facebook to its current name, announcing their entrance in the modern internet sector, according to Zuckerberg, who invested $10 billion to build the metaverse in 2021 alone. The announcement in October resulted in an increase of more than 30% in the stock price of Meta shares.

Nvidia Corporation (NVDA)

Nvidia Corp is the leading  GPU manufacturers in the market. Having such an important position in the market, and the demand for GPUs for the development and operations of metaverse, Nvidia Corporation has gained huge interest of investors. The pandemic-era blessed NVDA stocks with a huge peak with an increase of more than 500% share value. The demand of Nvidia for metaverse cannot be denied, making it one of the most important stocks in the industry.

Roblox Corp (RBLX)

The company gathers $3 million each day on the Apple Store from the game Roblox. Roblox is one of the most popular and cash rich game in the industry. Its metaverse nature, user-generated content, and a flourishing virtual marketplace makes it a profitable stock in the industry.

Metaverse: A good or bad investment?

Some people may argue that Metaverse is the most profitable investment, while others may disagree. While we analyze the scope and approach of the metaverse, we need to keep in mind that it is still under development, hence the disagreement of the other half of the people seems valid under some circumstances. But the fact that tech giants like Google, Microsoft, Facebook, and Apple are taking great interest in the development of metaverse, it is crystal clear that the industry has a really bright future ahead.

Leave a Reply

Your email address will not be published. Required fields are marked *