- JPMorgan made its first venture into the metaverse by opening an Onyx Lounge in Decentraland, making it the first bank to do so. JPMorgan estimates that the metaverse may generate $1 trillion in annual income.
- The report explains the metaverse, including what it is, the infrastructure that supports it, digital assets like non-fungible tokens (NFTs), Decentralized Finance, and legislative changes and how they may affect the metaverse.
- The metaverse economy’s entire addressable market will increase to between $8 trillion and $13 trillion by 2030.
Citigroup has expressed its enthusiasm for the metaverse, projecting that it could rise to anywhere between $8 trillion and $13 trillion by 2030. The bank also predicted that the number of users might reach a staggering 5 billion.
The Metaverse As Well As Cash Study Is A Document That Examines The Relationship Between The Virtual World As Well As Cash
Citi launched a new Global Perspectives & Solutions research titled Metaverse And Money: Decrypting the Future on Thursday. The report delves into the metaverse, delving into its many facets. The report explains the metaverse, including what it is, the infrastructure that supports it, digital assets like non-fungible tokens (NFTs), Decentralized Finance, and legislative changes and how they may affect the metaverse.
In the paper, Citi anticipated a highly bullish road ahead, with high-profile institutions and organizations expressing interest in entering the metaverse. Web 3.0 and the metaverse, according to Citi, will expand their scope beyond gaming to include areas such as media, advertising, art, commerce, healthcare, and more. It went on to say that an ecosystem of this size may turn into a multi-billion dollar market.
The metaverse economy’s growth and size were also addressed in the paper, which stated that the metaverse is on pace to become the next generation of the online world. According to Citi’s analysis,
The metaverse, we believe, might be the next generation of the internet, merging the physical and digital worlds in a way that is both persistent and immersive, rather than just a virtual reality world. We anticipate that the metaverse economy’s entire addressable market will increase to between $8 trillion and $13 trillion by 2030.
According to the research, the metaverse’s entire user base might reach approximately 5 billion people. Ronit Ghose, Global Head of Banking, Fintech, and Digital Assets, Citi Global Insights, a co-author of the report, commented,
Experts that contributed to the paper estimate a user population of up to 5 billion people, depending on whether we use a broad definition (mobile phone user base) or a narrower definition (VR/AR device user base) — we use the former.
The metaverse would also need major infrastructure improvements, such as an increase in processing efficiency, to realize the predicted market value, according to the paper. This would necessitate investments in network infrastructure, processing, storage, hardware, and development platforms for video games.
Citi also hinted that two Metaverses might exist. A closed version that is identical to Web 2.0 in terms of functionality. Meta is attempting to construct a metaverse similar to this. The second iteration of the metaverse would be open, decentralized, and community-based.
Additional Organizations Investigating Into Metaverse
A number of other financial institutions and banks have dabbled in the metaverse. HSBC recently announced that it has joined with The Sandbox, a major metaverse project, and would be purchasing a plot of land in the Sandbox Metaverse, allowing it to engage with sporting aficionados in the fields of esports and gaming, as well as sports.
In February, JPMorgan made its first venture into the metaverse by opening an Onyx Lounge in Decentraland, making it the first bank to do so. JPMorgan estimates that the metaverse may generate $1 trillion in annual income.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/02/citi-believes-that-the-virtual-world-might-represent-the-13-trillion-potential/