This post begins our study of the Metaverse as we take a look at Mark “the Zucc” Zuckerberg’s route to the Matrix — I mean Mesh 365 — uhh… Web3?… the Zuckerverse?… you know what I mean.
What is the Metaverse?
At this point, as abstract and meta as the idea of the Metaverse is we can only break it down to the basics of what it will comprise. The most likely outcome is that it will be shaped and created as it goes, much like the internet of today. New innovations will come and go, virtual reality will become more and more like the real world, and, eventually, we will realize that we can harvest human energy as the most sustainable source of fuel for our Teslas.
The Metaverse is a mix of everything that comprises the future of the internet. Blockchain/Web3, NFTs, upgraded computing, Oculus, virtual reality, etc. The truth is that the Metaverse is not a single thing, technology, or location in virtual reality. It’s a concept.
How can we invest in the Metaverse?
If you are talking about investing in Meta Platforms the company, a.k.a. Facebook, you can go over to your broker and buy shares in $FB soon to be MVRS. Facebook is a single player in a decentralized universe of companies that will take part and profit from the Metaverse.
What you’re likely asking is which companies are leading the Metaverse. Let’s break it down.
A Break Down
There are several sectors/industries within the Metaverse that are each contributing technology and innovation into the platforms that will power and run the M-verse. If you want to build a portfolio of Metaverse companies you can likely find them right in front of you.
Infrastructure
5G, yeah that’s right, that thing that’s gonna fry your brain because of all the microwaves flying through the sky.
The old guys are getting into this too. $T (AT&T), $TMUS (T-Mobile), and $VZ (Verizon) own a majority of the towers that give us the internet.
Hardware companies like $AMD and $NVDA are developing the hardware to generate the computing power necessary to run all of these things. $INTC can take part in what might be the comeback of the century.
Human Interfaces
Remember Google Glass? it was probably ahead of its time. Human interface devices is how you interact with the Meta. Whether they are virtual headsets, glasses, phones, laptops, you’re likely reading this on one.
The Oculus you got for Christmas is your portal to the Metaverse. Obviously the final frontier is to create a digital world that is so close to the real-world you forget you’re in it. If you need any proof that we are already living in a simulation just think that through.
Haptic suits to recreate feelings and the physics of reality. Or even create new physics in virtual reality. This could lead to haptic suit theme parks where you sit in a chair and feel like you’re flying across the sky. Video games will become extremely real. Who knows, maybe we’ll finally create Smell-a-vision.
Decentralization
You probably started hearing the buzz word Web3 not too long ago. Whether from Jack Dorsey’s tweet storm or your 15 year old neighbor that runs a 6-figure Tik-Tok account.
Web3 is a fancy word for how we can incorporate decentralization to change the internet from a centralized, owned by the Google’s of the world who fee off your data, to an internet created by the people, governed by the people, for the people.
The concept of Blockchain has really been around since 1991. Two mathematicians, Stuart Haber and W. Scott Stornetta drafted out a system to prevent document timestamps from being altered.
The essential concept of blockchain is that each block can be verified by all other users. This decentralization guarantees accuracy and integrity. The most common blockchain you’ve probably heard of is Bitcoin, but that’s just one implementation of the blockchain as a currency. Blockchain can be implemented into contracts, transactions, voting, storing private information such as medical records, storage, and many more technologies to come.
Investing in decentralization is tricky. Cryptocurrencies are likely the currency of the future, key word likely, but we still compare their value against a centralized currency, U.S. Dollars. Until we can set a value on a cup of coffee as .0001082 BTC I don’t find much use in trying to “value” or price crypto. To invest in crypto you have to believe in the story, like investing in Tesla. You don’t know what its worth or what the company will look like in 20 years but its innovating in a better future you’d like to live in so you can invest in it.
Spatial Computing
One of the most underrated technologies involved in the Metaverse is spatial computing. This is the creation of 3D models of spaces. Essentially, it’s recreating your house in virtual reality. Matterport ($MTTR) is one of the simplest implementations of the technology. Matterport creates cameras that take 3D pictures of a space, usually a house or apartment so you can take a virtual tour before you buy or rent. Google ($GOOG) street view is Spatial Computing.
But, in order to invest in the future, you need to think about what the future will look like. Think about mapping a 3D video, so you can recreate the feeling of being at a place in time. Not just from a single point but in a space you can walk around and interact with things. Like a virtual reality video game but a real-world memory. Now we are really getting into the Matrix.
Creator Economy
Removing the middle man from creator to consumer. Social media changed advertising/marketing. You used to need to create ads to sell your products. Now you can create content around your products and services and those serve as your marketing. NFTs give power to artists to sell their pieces directly.
Amazon ($AMZN) transformed e-commerce. Companies like Etsy ($ETSY) and eBay ($EBAY) allow anyone to sell their products.
Summary
What you likely noticed about a lot of these stocks/investments is that they’re a lot of companies you already know. Facebook, Google, Amazon. They control the marketshare and will likely be a huge part of the oncoming future. But the real investments are in the companies that aren’t known yet. The technologies that need to be built, implemented, and discovered.
If the Metaverse is really a decentralized, creator-focused new world it will be built by everyone. Investing in the Metaverse is really about taking part in it.