The metaverse has the capacity to be many things, with the only limit being that of imagination. This limitlessness of its potential has grabbed everyone’s attention the world over, giving a huge boost to the virtual environment’s real as well as perceived value. Needless to say, metaverse is going to be a moneyed prospect for many.
Unlimited Opportunities, Rising Demand
The metaverse marks a new technological era; after the world-connecting wave of the internet, mobile technology shaped the manner in which people connect to and on the internet. For years, the biggest monetization opportunity for tech companies was providing tools and gadgets to wield mobile connectivity; in other words, providing access equaled creating profits.
This belief has held over and shaped the market around virtual reality technology – and now the metaverse. Interestingly, unlike the VR market, metaverse valuations are taking the form of crypto exchanges just as often as they involve legal tender. As people rush to own virtual assets – be it digital merchandise, NFTs, cryptocurrency portfolios, or even virtual ad space – they are keen to experiment with new means of change.
This trend is driven both by novelty and optimism. Crypto enthusiasts firmly believe that the technology is the future of currency; its volatility may deter investors, but its blockchain-base makes it a scalable and secure option for exchanging value. These features have made it an attractive prospect within the metaverse as well, which is witnessing an influx of users and creators. Within this virtual environment, creating virtual experiences for virtual currency will be its own experience, catering specifically to futurist tastes.
Luxury Without Scarcity
In real life, expensive items are often priced higher because they are not widely available. This concept of scarcity may not apply to the metaverse, but the technology is driving the sale of virtual assets regardless.
At the merchandising level, many fashion houses, as well as consumer goods brands, have created virtual storefronts in popular events and gaming metaverses such as Fortnite and Roblox. The goods being sold here are completely virtual, and their exclusivity is determined by the seller’s wishes, not by actual availability. Despite this, users have been keen to spend lots of money as well as crypto coins on these assets, demonstrating their high perceived value.
Thanks to this phenomenon, real estate on the metaverse has become a reality too. Users are buying certificates of ownership for parcels of virtual space, often as a speculative move. Compared to the merchandising and NFT-based routes, virtual real estate on the metaverse is still in its initial stages. However, given the successful run of NFTs in modernizing the art collection space, it is possible that the metaverse may similarly transform the nature of reality.
A growing market for Virtual Reality
With Facebook reinventing itself to align closely with the metaverse dream, a renewed interest in virtual reality has come into play. News cycles full of takeaways from Zuckerberg’s keynote have alerted even the most tech-averse among us to the real and virtual possibilities of VR. While AR has had many takers in the last few years, VR – thanks to its hardware dependency – has experienced a slower adoption rate. However, with people curious about the metaverse, more and more are deciding to test the waters of immersive virtual reality.
This interest spells profit for the industry; according to one estimate, the market for metaverse technologies — including games, virtual reality headsets, and online services — reached $49 billion in 2020, projected to grow by 40% annually. While the metaverse as a global phenomenon doesn’t yet exist, people’s interest in the premise alone has driven the VR market forward.
It may be a while before we can experience the metaverse en masse, yet it has started to impact economies the world over. With disparate segments like cryptocurrency, NFTs, art, fashion, gaming, music, real estate and hardware entering the fray, it is only a matter of time before the metaverse finds a touchpoint with every aspect of modern life.
