Every decade gets an investment opportunity that makes them rich. In our parent’s time that was investing in real estate. As we can say, in our generation, Metaverse could be one such opportunity. Therefore, we spend a few minutes reading this article. We will understand a lot of things in a very intuitive manner. In this article, we will know why to invest equity in an Indian Metaverse company.
What is metaverse?
People get confused quite a bit. When they start talking about Metaverse, they assume that it’s some kind of a videogame and people are selling land or Facebook is doing something with Oculus. Firstly, Metaverse is nothing but a new planet. That is how I will define it. That right now we are living on Earth. Now we have created a new planet in virtual reality and that is what a Metaverse is.
Imagine Mark Zuckerberg wearing an Oculus and looking at something. So he’s looking at this new planet. And there on that Metaverse, that is a new planet.
For example, he can walk around in his avatar, he can interact with other people. For example, if I’m there, he can say Hi to me and I can say Hi to him. We can go to work from our communities. We can play games together and do a bunch of different things. Right. So in simple terms, it’s a new planet and it has a bunch of functionalities associated with it. When we go and play a video game, there are a bunch of functionalities associated with it. During the old times, people used to play Mario Aladdin. Then they started playing something like God of War. What are we essentially doing? We are being transported to a new planet and we are getting entertained.
We are deriving entertainment value out of these video games. Now imagine a planet where we can derive a lot more than this. We can go party with our friends, we can launch our cryptocurrencies or a new world version of Currencies. We can go and start new businesses on that planet. So the entire value that can be derived out of the metaverse makes it one of the foremost innovations in my opinion for our generation.
Let’s figure out what investment options are there in the metaverse.
Right now, there are two types of Metaverses. The first type is the Meta or the Facebook type, which is palpable. Everyone knows who Mark Zuckerberg is. He owns Instagram, WhatsApp, Facebook, and now meta. So that’s a more palpable version of Metaverse. He’s also trying to create a new planet, and another new planet is being created in the crypto or blockchain world.
So these are two variants of Metaverse that exist till now, and we can invest in both these Metaverses. For example, if we want to invest in Facebook or Meta, we can go and buy a US stock, which is Meta. We can go and buy Facebook stock and also as a retail investor, become an investor in Meta.
The second option is that we can go buy NFTs or Nonfungible Tokens, and we can also buy certain cryptocurrencies. For example, we can buy something like Mana, which is the cryptocurrency for the centerline.
There are Metaverses like Decentraland, Axie Infinity, and Sandbox. These are all competitors to the physical or more palpable Metaverse.
Now, we have got two major different types of Meta
- Facebook Meta
- Crypto Metaverse
Which one is better and as retail investors what we should do?
This is an important story and we need to understand that Facebook very recently tried to launch a crypto coin called Libra. And the project did not go well. Now the question arises,
Why did it not go well? But first, let us understand why Facebook decided to launch Libra or why they have not disclosed the entire plan. They want to get into the crypto space as well. Crypto is modulated by decentralization, decentralization means that there is no central authority.
And what is Facebook known for? Facebook is known for aggregating data, packaging it, and selling it to the highest bidders which are advertisers. So no one trusts Facebook. From that perspective, the entire audience is not believing in the narrative that Facebook is truly going to create a decentralized system. Therefore, their Liberal project did not go well. That’s partly to create a new Metaverse or a new planet.
What do we need from Metaverse?
- We need people to believe in it.
- We need to have developers because this planet needs to be built on technology, which is blockchain technology. So we need developers to come onto that Metaverse and start creating more products and systems and processes. The Metaverse can be defined as virtual reality, augmented reality, and blockchain-powered networks. It allows the users to create and inhabit digital spaces (called “avatars”) with other people, such as chat rooms and virtual worlds.
For the metaverse, We need to understand what Decentraland is? And what does it look like?
Decentraland is a virtual world that we can buy and build on. It’s a platform where we can create and share interactive content. An open-source virtual reality platform, where users can create, experience, and monetize their content. It might look like a video game, but it’s not that. On Decentraland we can create, explore and trade in the first-ever virtual world owned by its users.
We can buy and sell land, estates, avatars, and variables named the center line marketplace, stocking the very best digital goods and paraphernalia backed by the Ethereum blockchain. So this entire Decentraland is a planet in itself and it is powered by a currency called Mana.
What can we do with this Decentraland currency?
We can buy a piece of land or real estate. We can buy all these different things. We can trade it. There are different NFTs that we can trade on a platform called Openseas as well. So this is our biggest NFP Marketplace, so we can do all these different bunches of things.
Key things to understand
What is an NFT?
For example, if we are playing, let’s say Call of Duty, which is a video game and we buy a gun, we buy a nice gun, we spend real $100 to buy that gun. Now we can’t do anything much with it outside that game. But on an NFT, for example, we have a virtual jacket, we can go on open seas and we can sell it off for real money. So this is the functionality of blockchain-based NFTs that they become tradable. They become like commodities. We can sell them, buy them, we can monetize them. And that is the reason why the next leg of video gaming is Metaverse because there is a real incentive for people to engage with these games. After all, they get to make money.
- 3 Major Meta-verses in the Crypto World
- Axie Infinity
These are three major Metaverses that are existing in the crypto space.
A lot of companies are coming up. A lot of companies are taking their claim that they will become the next prominent Meta. The War is going on between four different companies.
- Axie Infinity
One millionaire question is WHY WE SHOULD INVEST IN THIS COMPANIES?
Firstly, companies like Microsoft and Facebook are building Metaverse. Facebook, unfortunately, has failed in its crypto game Libra project. Therefore, it has moved to a physical, more palpable type of a Meta that was taking a completely different narrative, so probably it might be there.
Secondly, we need to take a look at the marketplace.decentraland.org, and here we can start trading all these different NFTS. These are the newest items so we can buy them. We just need to connect our wallets and we can start buying all these different stuff. These are parcels of land that we can buy and a lot of big companies, for example, Coin Market Cap is a real-world company that is buying land in Metaverses. Binance is buying land on metaverses. We have other big companies that are jumping in and are buying land on all these Metaverses because they understand its functionality.