Is Metaverse a Stock?

Metaverse doesn’t exist yet. But various companies are trying to be a part of the Metaverse that technology enthusiasts envision. 

It’s like the 1990s internet hype when every business attempted to become the next big internet company. But Metaverse isn’t the next internet, nor will it replace it.

Metaverse is a product that will use the internet like Streaming platforms — YouTube, Netflix, Hulu, etc. — to provide services. No one owns the internet. Similarly, no one will own the Metaverse.

Metaverse isn’t a stock; it’s an upcoming interconnected virtual world. And some companies want to be part of the Metaverse with their virtual world. If you’re going to invest, you should invest in those companies such as Meta Platforms, Inc. (FB), Microsoft Corp. (MSFT), Inc. (AMZN), Nvidia Corp. (NVDA), Unity Software Inc. (U), Roblox Corp. (RBLX).

A product that makes our lives easier, saves time, and reduces physical labor becomes successful. Here are a few examples —

  • The iPhone became successful because it combined the internet, PC, and music device into one for the first time in history.
  • Netflix is successful because we don’t need to visit the theater or store to rent movies (reduces physical labor). We don’t need to sit through advertisements during shows (saves time).
  • Uber is successful because it automated the entire taxi industry and reduced stress on the customer front.

Therefore, if Metaverse wants success, it has to achieve these — make our lives easier, save our time, and reduce physical labor.

The concept of Metaverse is simple. Different companies will create their respective virtual worlds. But all these virtual worlds will be interconnected and interoperable. Moreover, Metaverse will enable us to enter it with any AR, VR, mobile, PC, TV, and game console device. 

Even today, numerous virtual worlds exist, such as VRChat, Second Life, Fortnite, Roblox, Minecraft, etc. But they all are disconnected. 

Moreover, these virtual worlds (VW) are not interoperable. It means we can’t take a digital asset from one VW such as Minecraft to another VW Second Life.

However, if the benefit of these virtual worlds is not groundbreaking, then the interconnectivity and interoperability are useless. 

Therefore, if you want to invest in a Metaverse company, you should invest in a better-positioned company with an exciting virtual world.

Honestly, no one knows whether Metaverse will become a reality or a success. However, we have to invest in companies that have other business endeavors besides Metaverse, such as Meta (formerly Facebook), Microsoft, or Nvidia. It’s because, even if the Metaverse fails, our investment would be safe. After all, these companies are reliable.

We have been using Second Life since 2003. It’s one of the oldest virtual worlds that still exists. But so far, the virtual world has failed to become mainstream. Only a niche internet community uses it.

For the last 30 years, VR has failed to take off. 3D TV failed to take off. The 3D cinema theater failed to take off. So, what’s different this time that Metaverse would take off? Even though we are highly skeptical, we also see its potential.

Metaverse isn’t simply virtual reality (VR); augmented reality (AR) is also part of it. 

Facebook’s (now Meta) Horizon Worlds seems like the second coming of Second Life. However, Microsoft’s mixed reality-based Mesh looks promising. 

Here are a few enticing Metaverse examples that can make Metaverse popular —

  • AR maps will impose direction directly onto roads. Therefore, it will help us to keep our eyes on the road.
  • During shopping in a retail store, AR can help us to find product ratings, quality, and competitive pricing.
  • And many more.

Many people routinely point out the following potential Metaverse use cases, but we find these are boring and Metaverse killer

Virtual Meetings: Mark Zuckerberg’s favorite use case of Metaverse is a virtual meeting. Mark misses human interaction during Zoom meetings. He believes that a meeting in the 3D virtual world would be great. But we think it’s boring and useless.

Another Virtual World: When the Second Life came out in 2003, it was a very hot topic at that time. Twenty years later, no one even knows its name except for a few. Facebook’s Horizon Worlds is nothing but another virtual world and less popular than VRChat.

Virtual Concert: A few years ago, 360 videos was a buzzword. Every video platform, including YouTube, launched 360 videos. But it failed. Few tried to stream or sell 360 concert tickets. But it didn’t take off.

And many more.

We should invest in companies that are focused on novel ideas. We should invest in companies whose products will make our life easier. 

GPS, the internet, smartphones, streaming services all took off because these made our life easier, not harder. Therefore, we should invest in a Metaverse company whose products will achieve these — makes our lives easier, saves our time, and reduces physical labor.

Finally, AR and VR have some niche use cases. But not every company will find its place in the Metaverse.

Never invest in a company based on online suggestions. Please always do your due diligence and research.