What’s Up With Mark Zuckerberg’s Metaverse — And How Can You Get Invested?

Key takeaways

• The metaverse is a somewhat-nebulous idea that blends socialization, virtual reality, augmented reality and blockchain technology
• Investing in the metaverse offers high risk and volatility with a potential for high rewards
• As a new technology, there’s no guarantee the metaverse will take off – but big companies are pouring billions into the space to ensure it does

If you were on the internet at all this week, chances are, you came across a peculiar selfie of Mark Zuckerberg. Only, it wasn’t Mark Zuckerberg, and it wasn’t exactly a selfie.

It looks more like you paid a kid five bucks to draw Mark Zuckerberg’s selfie, but instead of crayons and paper, the child pasted a scruffed-up rendering of one of those cute, bobblehead Mii-mojis from back in the day in front of a clip-art Eiffel Tower and a pointy sandcastle.

This absurdity – if we can so generously call it that – isn’t a joke or Zuckerberg’s first attempt at Claymation. Rather, it’s an unironic screenshot from Meta’s Horizon Worlds, Zuckerberg’s pet metaverse project.

The screenshot was pasted on Facebook earlier this week with a note from Zuckerberg saying that he’s “looking forward to seeing people explore and build immersive worlds” in the company’s first stab at the metaverse.

Now, to be fair to Zuckerberg, Facebook – rather, Meta – isn’t an animation company. But you’d think for $10 billion, Horizon Worlds would look less like a knockoff Disney prince sticker pasted onto a five-year-old’s collage and more like…well, anything else Disney has ever produced.

But enough bashing on Zuckerberg. Now that we’ve made our in on this topic, let’s take a dive into what the metaverse actually is (aside from a cartoonish not-joke), and what it looks like for investors.

What is the metaverse?

In three words: nebulous and complicated.

In a few more words:

The metaverse is (or will be) an interactive environment build on blockchain and internet technology. By combining virtual reality, augmented reality, digital reality and actual reality, people will be able to interact with avatars, each other and their environment at the same time, even across vast spaces.

It’s a place that always exists – even when you’re logged off – populated by avatars and decorated with NFTs. Cryptocurrency is often involved, usually backed by a real-world financial investment, to facilitate a digital economy with virtual representations of legitimate ownership.

But the metaverse of today isn’t quite that complex. Mostly, it looks like virtual worlds and videogames a lá Roblox or Fortnite. In other words, places where people can create avatars, play games and purchase virtual goods.

Sometimes, clunky VR goggles and bad graphics are involved. (Looking at you, Zuckerberg.) Others, a computer screen and internet connection are all you need.

While companies pour vast resources into a metaverse built on no rules and endless promises, modern technological constraints ensure there are plenty of boundaries on what it is now. Still, a few billion dollars a year is nothing to sneeze at – especially when investment potential abounds.

How to invest in the metaverse

Since the metaverse remains somewhat nebulous, you’d think investing in it would be equally abstract. But where there’s an opportunity to cash in, someone has made it a reality. So, somewhat surprisingly, investing in the metaverse is perhaps one of the realest things about it.

Crypto

Many metaverse-based games offer in-metaverse tokens to make transactions, participate in staking, or buy voting rights on governance proposals.

Two of the most popular metaverse-based cryptos include MANA by Decentraland and SAND by Sandbox. TAMA and IBAT are two new metaverse cryptocurrencies preparing to hit the scene this year.

These cryptocurrencies operate a lot like other cryptos: you can trade money or other currencies to purchase tokens. (Either on a platform like Coinbase or in-world.) Then, you store them in a secure digital wallet until you’re ready to spend or sell them.

Most in-game tokens aren’t designed for real world applications like buying a pizza. Instead, they’re designed to be used inside specific metaverse environments. (Or held until their real-world value climbs and you can sell at a profit.) That said, if you can find an interested investor, you can readily exchange them for other currencies.

However, just because you can invest in metaverse cryptos doesn’t mean it’s wise. Many of these coins are relatively new, fairly illiquid and potential volatile. Between their small user bases and ability to crash when a dog sneezes, you could lose your investment in a hurry.

NFTs

NFTs, or non-fungible tokens, are unique digital assets that you can purchase, download and sell. Think of them like digital property anyone can look at, but only you own – the digital equivalent of hanging the Mona Lisa or Starry Night on a museum wall.

Following their inception, NFTs quickly rose in popularity, with some selling for millions of dollars apiece. Most exist on the Ethereum blockchain, though many have now branched out into other blockchains. These digital items often represent art, collectibles, music, videos or – importantly for the metaverse – in-game assets.

In the metaverse, NFTs provide a way for users to stake an ownership claim over specific items. These can be anything from virtual land or houses to digital clothes to fancy swords. (Famously, one investor paid $450,000 for a virtual plot of land neighboring the virtual property owned by Snoop Dogg.)

Or, you can stick with regular ole NFTs and buy a digital copy of the Mona Lisa to hang on the wall of your digital mansion.

As an investment, purchasing NFTs is risky business; there’s no guarantee you can flip your ownership stake for a profit. However, with the metaverse on the rise, it’s likely that some kinds of NFTs will become more valuable than others.

Stocks

A more traditional way to invest in the metaverse might be to buy stocks in companies that create or facilitate the technology that hosts the metaverse.

Aside from the obvious choice (Meta), you can invest in Roblox, which offers its own user-filled metaverse. Nvidia and Intel may make good bets if you’re betting that the metaverse will need plenty of microchips to get off the ground.

And we can’t forget internet and tech giants like Google and Microsoft that make web-based metaverse projects possible.

Even Nike has become something of a metaverse stock after partnering with Roblox and Decentraland to boost its presence.

Metaverse stocks are perhaps the better bet for risk-averse investors who prefer indirect exposure to risky assets. (Though stocks are certainly not innately risk-free themselves.) However, they may not offer the same risk-reward profile that more direct crypto and NFT investments boast.

Opportunities and risks on the new horizon

In just a few short years, several big tech firms have thrown billions into metaverse investments like virtual real estate. Sales of digital property exploded in 2021, topping $500 million. And while that’s a tiny slice compared to physical real estate sales, it’s not nothing, either.

Individuals and companies have flocked to virtual real estate investments due to their long-term growth potential. Though it’s still early, investors hope the metaverse will offer room to profit, such as by rent payments or virtual scarcity.

Due to the large amount of cash flowing through the metaverse, some people believe there’s plenty of opportunity ahead. However, the metaverse’s upcoming evolution is uncertain. Investing in real estate can be risky enough, let alone digital real estate.

Because of the risk and inherent speculation, some worry that it’s doomed to be rife with scams – if it ever gets off the ground.

Pros of investing in the metaverse

• The metaverse offers exposure to new, exciting technologies like blockchain, augmented and virtual reality, NFTs and crypto
• Powerful, experienced backers suggest confidence and expertise in the space
• There’s high potential for returns in some metaverse assets
• More money in metaverse projects means a higher chance of future success

Cons of investing in the metaverse

• Metaverse- and crypto-based assets may be bad for the environment
• Public blockchains have their share of privacy and security issues
• Metaverse-based assets have already proven highly volatile, with some experiencing boom-and-bust-like cycles
• Metaverse stocks are largely tech stocks, which may be inherently more volatile
• Scams run rampant in anonymized environments
• There’s no guarantee the metaverse will become mainstream anytime soon

Invest in the future with Q.ai

To some, the metaverse is the way of the future; to others, it’s a fancy scam doomed to fail. No matter your feelings on it, you can’t deny its popularity – or the investment opportunities it presents.

That said, navigating the metaverse’s potential is no easy task. Aside from watching out for fraud and manipulation, you also have to be concerned with liquidity, volatility and a sea of obscure acronyms.

That’s where Q.ai’s Crypto Kit comes in handy. Our AI-backed Investment Kit takes the confusion out of crypto, so all you have to do is invest and relax. There’s no need to invest in a digital wallet, understand the nitty-gritty details of the blockchain, or crawl into the weeds of the metaverse.

It’s investing in crypto made quick and easy – with Portfolio Protection there to back your every play.

Download Q.ai today for access to AI-powered investment strategies. When you deposit $100, we’ll add an additional $50 to your account.