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Metaverse — What’s it all about?
In simple terms, the Metaverse is a virtual representation of reality in 3D. This digital environment is accessed through a personal terminal while using a virtual reality headset and/or other interfaces for interaction. Metaverse offers new experiences to users, such as purchasing real clothes in virtual stores, which can be collected later at the store in real life.
In this platform, 3D virtual reality and reality are interlinked. Metaverse is being built on blockchain technology, which is the foundation of Web 3.0.
- In Web 1.0, we had access to the Internet through Netscape.
- Web 2.0 connected us to online communities through Facebook and other social media platforms.
- Web 3.0 through blockchain technology, Metaverse will connect us through virtual reality, with control now in the hands of the user.
Methods of Investing in the Metaverse
The Metaverse is still in its initial stages, and industry experts estimate the value of the business it could generate could grow to nearly $400 Billion by the year 2025.
With such an upcoming market, let’s see the Metaverse investment opportunities available!
The most common Metaverse investment opportunities are:
Real Estate in Metaverse
We are all familiar with what a real estate investment is in the real world. Purchasing land or a house to rent/sell for a profit is the basic objective of real estate. Digital real estate functions similarly.
Except on the Internet, domain names, websites, and blogs are considered property. These can be sold or rented out like houses or apartments for profit.
If you have knowledge of how crypto trading works, then you have an edge over others since all digital property is sold and bought using cryptocurrency. The following are the steps for investing in Metaverse land.
1.Set up your Digital Wallet:
Real-world money cannot be used to purchase digital real estate. We need cryptocurrency in Metaverse, for which a digital wallet is required. It’s like converting currency when you are traveling from one country to another. On Decentraland the cryptocurrency is known as MANA, and on Snoop’s Snoopverse it’s called SAND.
- Download a wallet app for your metaverse crypto (popular apps like Coinbase Wallet and MetaMask are available).
- Create your account.
- Write down your private key. If you forget your private key which is a random 12-word phrase, you will not be able to access your cryptocurrency.
- Transfer your crypto to your wallet. It is better to have a self-custody wallet that will allow us to use real currency to purchase cryptocurrency directly.
2. Choosing the Platform:
After setting up your digital wallet, you can purchase land from Metaverse platforms such as Sandbox or Decentraland. Other third-party platforms such as Opensea or Nonfungible.com are also available for the purchase of the digital property. These platforms offer buyers a range of digital amenities and also variations in the price of properties. One important advantage with third-party platforms is that buyers can determine the asking prices of these properties in real-world currency.
This helps the user keep a tab on how much they spend while investing!!
3. Closing the deal:
In the real world, finding a property and closing the deal is not an easy task, but that is not the case in the digital world. With a well-funded Metaverse crypto wallet, and a property space of your choosing, all it takes is a click for the right price. Once the transaction is complete, an NFT is minted showing that the particular property belongs to you.
An essential item to consider before purchasing a piece of space is to check the history of transactions of the property using Scour from BitsCrunch, to ensure there is no foul play. This application makes sure that your money is spent well and the investment you have made is absolutely safe.
Cryptocurrency in the Metaverse
Cryptocurrency is the form of payment used in the Metaverse. Investing in cryptocurrency is one of the best ways of investment in the Metaverse. Cryptos’ power the Metaverse projects on Blockchain. These coins are used to pay for everything in the Metaverse, starting from NFTs, digital real estate, personal avatars etc.
Crypto coins serve as a link between the virtual world and the real world. These currencies are built on the Ethereum blockchain, i.e. they use the Ethereum network to verify transactions.
As time goes by, the value of these cryptocurrencies is bound to increase with the rapid growth of Metaverse.
There is a general rule to investment, not to invest more than what you are willing to lose. Also please Do Your Own Research (DYOR) before investing.
In-Game NFTs in Metaverse
- Irrespective of where they are found, the word NFT stands for Non-Fungible tokens.
- In simple terms, an NFT is an ownership certificate of a limited quantity item available on the digital platform.
- The latest trend in the gaming world currently is that players are being offered In-game NFTs. Developers are seizing the opportunity to create in-game NFTs such as character skins, player weapons or items, land etc., which would improve the level of play within the game.
- Let’s consider the case of the game Fortnite. Suppose a rare player skin was being offered as an NFT to the first player who could unlock the skin in the game. The player would be given ownership of that NFT.
- The NFT is then sold through an auction to the highest bidder, making a lot of money for the player in the process. The undercurrent in the situation is that this attracts a lot of players to the game.
- An upside to the sale is the fact that no matter how many times the NFT is sold, the original makers of the game would be paid a royalty every time the NFT is resold.
Purchasing Metaverse Stocks
Another method of investing is to purchase the Metaverse stocks of the companies related to it. In this instance, we can buy stocks of companies that support both hardware and software needed for Metaverse.
By investing in these companies, you will be entitled to an increase in the share price of the stocks you own and benefit from the company’s profit.
The following companies are a few that have business models linked to the Metaverse :
- Meta Platforms Inc. (NASDAQ: FB)
- Roblox (NYSE: RBLX)
- Boeing (NYSE: BA)
- Microsoft (NASDAQ: MSFT)
Indexing in the Metaverse
- Metaverse Index works on the same principles as the stock market index.
- The Metaverse Index captures the trends in the gaming, sports, entertainment industry and businesses that are shifting to the Metaverse.
- The index captures the patterns of business giants.
- To invest in Metaverse, you need to purchase Ethereum with the help of a self-custody wallet, following which Metaverse Index can be bought with ETH.
- It is one of the best ways to invest in Metaverse.
The Metaverse Index is a lot safer, slower, steady and diluted compared to investing in individual crypto coins. These kinds of assets are the best way for someone new to start investing in the Metaverse while keeping the risks to a minimum.
The Future of Metaverse
Currently, many firms worldwide are investing in the Metaverse, which raises an important question: Why are they being lured to the Metaverse?
There was a time when people received emails sparsely and thought the idea of the internet was crazy and absurd, but now the world communicates regularly through emails. The growth curve for Metaverse is charted to go on upscale and is not going to stop!
With an upward growth curve on the chart, tech giants can foresee a thriving economy within a few years. Thus, making this the right time to start investing.
With all the Metaverse investment opportunities, certain complications come along as a package. An investor, before investing their money, needs to know about wash trading, digital forgery, and how to assess the fair value of digital assets. There is a need for a reliable platform that handles the constantly changing Web 3.0 landscape. bitsCrunch, with their AI-powered solutions, protects you from forgeries, misleading content, manipulations and delivers true value to your assets.
Want to make sure you invest in the correct asset for safe and maximum returns? Get in touch with bitsCrunch today!
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