Metaverse – Between vision and reality

The Metaverse isn’t just part of the internet’s next generation – it promises to turn everything upside down. But for the Metaverse to revolutionize life, work, shopping and everything else, the necessary developments must succeed and sufficient acceptance must arise.

When Mark Zuckerberg renamed the American tech giant Facebook to Meta last fall, the term “Metaverse” also spread. The Metaverse, the next level of the Internet and the heart of Web 3.0, has been around for a little longer. And above all: it is already steadily growing.

When Decentraland, the first public Metaverse, was launched in February 2021, it had about 15,000 monthly active users. Today there are about 15 active public metavers, including SandBox, Somnium Space, CryptoVoxels, SuperWorld and Axie Infinity. They have a total of 1.5 million monthly active users, which is 10,000 percent growth over last year. It’s likely to grow even more, as a survey by VPN provider NordVPN found that 74 percent of US adults are considering joining the Metaverse.

3D fashion and music

Land sales in the Metaverse are also growing exponentially. Millions of dollars are already being traded daily, with Fortune 500 companies like JP Morgan and Samsung getting their first Metaverse trials.

Music festivals and the first fashion week have already been held in the Metaverse. As with physical fashion weeks in Milan, Paris or New York, companies presented the clothes at showrooms, catwalk shows, and parties. These include many well-known brands such as Etro, Dolce & Gabbana, Tommy Hilfiger and Selfridges.

put a shovel on it

While many are skeptical of the Metaverse, US bank Citi believes it has huge growth potential. The investment bank said in a recent report that the Metaverse has the potential to have five billion users and $8 trillion to $13 trillion in revenue by 2030. Goldman Sachs sees it much the same way, certifying that the Metaverse has $12.5 trillion potential by the end of Contract.

But in order to establish itself on a large scale, 3D worlds like Decentraland must go a step further. So far, the technical implementation has been more than bumpy, and it seems that the computing power requirements are not yet met. In the current situation, the Internet infrastructure cannot build an environment that allows users to have a smooth experience.

In their report, Citi experts stress that investments in the billions are essential: “In order to make the vision of the Metaverse a reality, we anticipate significant investments in a mix of technologies. Slow response time – the time it takes for a data signal to travel from one point on the Internet to another and back again – is critical to building a more realistic user experience.”

Citi anticipates that the finances in the Metaverse will consist of a mixture of traditional forms of money and cryptocurrency. NFT (Non-Foldable Tokens) will play a major role, experts continue. NFT enables a form of sovereign ownership of digital objects and is currently in high demand. New projects are launched every day, the turnover will be 2021. A year ago it was only 0.1 billion dollars.

tech giants battle

Investment banking group Jefferies believes investing in Metaverse is like investing in the early days of the internet. According to Simon Powell, Head of Objective Research, investors should focus first on hardware vendors, then on software vendors, and finally on companies operating in the metaverse.

The first place belongs to the major technology companies Meta, Microsoft and Apple. But the lesser known names also make good cards. For example, the video game company Roblox Corp., which has been developing gaming technologies since its founding in 2004. The company has experienced massive growth in 2021 as many Metaverse users and developers have joined the Roblox community.

The first Metaverse ETFs traded here

Many other companies are closely associated with the developments of the Metaverse and could also benefit. For example, the semiconductor manufacturer Nvidia, which develops and produces graphics cards. Graphics cards are integral to running simulated digital environments and worlds. Companies such as Autodesk and Unity Technologies are also involved in the development of Metaverse. They are used to create digital forms.

New Worlds also plays a role on international exchanges, and the first Metaverse ETFs have already been approved. It is not yet available in Switzerland, but local investors can obtain various solutions in the form of tracking certificates from Vontobel and Swissquote.

A lot about the Metaverse sounds like science fiction and would take years to do. The long-term market potential is enormous, but the Metaverse can only be truly successful if the developments do not only provide added value to gamers and geeks, but to the general public.

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