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Metaverse: the new internet and how to invest in it

Metaverse

Written by:

Xing Hui

Before we even answer whether the Metaverse will be the next internet, let’s learn a little bit more about it and how it will actually affect us in the future. 

Who coined the term “Metaverse”? 

The origins of the word Metaverse come from a 1992 sci-fi novel Snow Crash by Neal Stephenson.  In his novel, Stephenson described a metaverse as:

a computer-generated virtual reality that allows people to access the space in the form of “avatars” which are essentially the virtual renditions of physical bodies used to navigate and interacting with its element.

Ready Player One by Ernest Cline is a good example of a potential “Metaverse” world. 

What is the “Metaverse”?

One simple way to describe it would be: it is an environment where you can be any avatar you want and where you can interact with others in an online universe. It is a place where the physical world merges with augmented and virtual reality.

One of the games I remember playing when I was younger was Habbo, which has a similar concept but it was far from the metaverse we are envisioning today. 

Source: Habbo

According to the Metaverse Roadmap published by the Acceleration Studies Foundation, the metaverse is the convergence of a virtually enhanced physical reality and a physical persistent virtual space. It is a fusion of both while allowing users to experience either of the two.  

Metaverse should not be viewed as an environment purely for gaming, but rather a technology that delivers the clearest forms of presence on the internet. For example, it could provide you with the same experience as attending a physical meeting instead of just a Zoom meeting. 

What is the catalyst for Metaverse?

One of the key catalysts that drove the development of the Metaverse was the Covid-19 pandemic.

The current situation sped up the adoption of digital technologies by several years. To stay afloat, many businesses were forced to change their business model to online. Companies had to make changes to allow their employees to work from home. Classes had to be conducted online. Everyone is now moving online in order to stay connected and relevant.

And yet the internet as we know it today was designed for pre-Covid days. 

As we shift to virtual communities, problems arise like the lack of personal touch, low individual visibility, and even hardware or software issues. These issues are not being addressed by the current state of the internet. Fortunately, the Metaverse could be the solution and the next breakthrough.

Who are the current power players? 

Right now, we are seeing many top tech companies like Facebook, Google, and Microsoft go big on Metaverse.

During their company’s earnings call in July, Mark Zuckerberg mentioned that Facebook will be going big on Metaverse in the coming years and would like Facebook to be thought of as a metaverse company.

Facebook also released an “open beta” Oculus Quest called Horizon Workrooms, which creates a VR experience for people to innovatively conduct meetings. This technology has definitely gone beyond video conferencing, where you connect with people only through your phone or computer screen.

Another impressive development is Google’s “Project Starline”, which combines real-time compression with 3D software or hardware.

It makes the person appearing on the screen seem as though they are sitting right in front of you. Here’s what it looks like:

These are just some glimpses of how the metaverse will impact our lives. There are much more hardware and software applications being developed today as we move toward building a metaverse universe.

Here’s the current Metaverse Market Map for those interested: 

How can you invest in the Metaverse’s future?

At Dr Wealth, we are investors first so let’s shift our focus back to investing.

At present, there are so many companies that are playing a part in the Metaverse universe and it’s too early to tell who will end up leading the eventual Metaverse field.

But if you want some early exposure, there’s an ETF for it – The Metaverse ETF (META) by Roundhill investments. 

The Metaverse ETF

The Metaverse ETF aims to provide investment results close to the performance of the Ball Metaverse Index (“META Index”), which is maintained by Matthew Ball. He is the managing partner of EpyllionCo which operates an early-stage venture fund and a corporate and venture advisory arm. He also writes about Metaverse related topics here.

For more, read our compilation of the Best Metaverse ETFs

Will the “Metaverse” actually happen?

Looking at all the recent developments, Metaverse can become a reality in the future. Before you know it, the internet can give you a totally different experience.

That said, it will require a lot more work for it to become a reality.

For one thing, the eventual Metaverse would have to fulfil the 7 layers of structures (see image below), from infrastructure to experience. This does not include regulations, standards and protocols that will come at the latter part.

Hence, the Metaverse cannot be achieved by one company alone but by a whole network of businesses and will need frequent collaboration between hardware/software providers and content creators. 

Conclusion

Although there are people who might think there’s no need for a change and moving to the metaverse universe is dangerous, I personally think that this is a new innovation that shouldn’t be overlooked.

Will metaverse be the next internet? 

Honestly, I don’t know for sure but I do know we’ll be seeing something spectacular in the next generation of the internet. I can’t wait to witness and experience it myself. 

That said, Alvin has been looking out for metaverse stocks that balance the Dr Wealth portfolio and include safe bets on the Metaverse. He’ll be sharing more about how we invest, and you can register for his live webinar here.

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