The Metaverse is coming and we are all going to be a part of it. You, me, everyone who wants to be a productive member of society. The technology that makes up the metaverse is about to permeate every aspect of our lives. It’s not just about gaming or living in a 3D world – it’s blending technology with everything we do every day.
Anything as big as the Metaverse is going to create investment opportunities, and the recent volatility related to the new Omicron COVID-19 version is a great opportunity to get into some positions at depressed price points. Also, while we are not yet sure how severe Omicron is going to be, we do know that COVID-19 restrictions in general have led to technological change. Said another way, whether or not Omicron is serious doesn’t materially change our belief in the names that will flourish as the Metaverse expands in the years to come.
We are going to write a few different articles digging deeper into the different sections of the metaverse and how the different investing opportunities present themselves, but to do any of this we have to start at a high level and Let’s talk about what the Metaverse is and why it is being developed.
What is Metaverse?
So what is the metaverse? A narrow vision might sound something like “a digital world or alternate reality – built on social media, games and leisure”. We think it is much broader than that. The first thing you need to know is that it’s much bigger than just company meta. Sure, Facebook has rebranded as Meta and is trying to position itself at the center of the creation of the Metaverse, but the idea of the Metaverse is much bigger than social media. Social media is just a piece of the pie once in a while, even if it is a significant one. But there are also many other components, from work automation or remote productivity to personal health care, digital transactions and cryptocurrencies, all the way to the physical infrastructure involved in operating in a digital space.
Staying high though, let’s talk about the biggest companies in the market and how they are getting into the metaverse.
I know, I know, it’s not just exciting to read about the Metaverse and then hear about the same old names, but it’s also important to realize that these companies that are portfolio staples, are driven by constant innovation, growth, and the inevitable. setting up as . digital future. Without them, none of the fun part of the metaverse is possible.
look at microsoft
You find jobs through platforms like LinkedIn, and coders around the world use tools from places like Github every day to build applications. You probably take most of their services lightly or don’t even know they are there, but the basic tools they provide are the building blocks for you to interact with other people digitally. Take away Microsoft and Google, get rid of Amazon Web Services, or get rid of iPhones and the App Store, remove them all and the Metaverse isn’t really possible.
So, if you’re looking to build a metaverse portfolio, start with understanding the oligopolistic value that big tech companies bring to you before diving into the more fun stuff. Big technology makes it all possible and at its center is Meta, formerly known as Facebook. Meta is really doing its best to position itself at the center of the metaverse, and many other big tech companies are jumping on board with their vision. This is really important because the people who control the data will control how the metaverse is created.
The logic is that before you can connect people to services and payments, you have to connect people to each other and put a lot of data on the web. The same big names that more or less enable the web are also at your center in the digital world. get your apple
Control your data and your identity
I want to take a moment and highlight how important the first step in the metaverse is. Your digital identity – protecting and verifying it – is probably the most important core component of what you have online. If you are not able to control your identity you cannot work remotely, shop securely, chat with your friends, collect NFTs, or anything else in the truly digital world. can also do.
Securing this information is a huge undertaking and requires a lot of resources. It is difficult to collect and protect massive amounts of data. From an investment perspective, this creates a wide gap for companies that can do it. Having that identity data doesn’t generate revenue directly, but it does ensure that companies are the center of everything you do – it puts them in the driver’s seat and allows them to control relationships with any company. Allows anyone who wants to join in. you digitally.
Facebook, now renamed Meta, is a great example here. It knows everything about you and your friends, it knows what kinds of content you’re interested in, and it’s well-positioned to control the relationship between you and any merchants with whom You want to interact on their platform. And if they can control the relationship, they can benefit from it.
Meta is down more than 20% from its highs this year and we think this could be an opportunity. It’s at the heart of the Metaverse expansion which is exciting enough, but on a more granular level they have a number of initiatives that continue to show promise and lay out a roadmap for continued growth on the back of their huge user base.
What’s particularly exciting is that its model could be a leader in how the metaverse is built sequentially. Apart from being a leading chat platform, it is now moving to expand into payment processing and also forging partnerships with companies such as Uber.
The key here is that everyone wins.
In this scenario, expanding the metaverse through WhatsApp is good for the consumer who gets the product from a secure source and who enjoys easy payment processing. This is good for the merchant who has easy access to the customer and also enjoys secure payment processing. And again, it’s obviously good for the meta to be controlling the whole thing.
Take this same model, expand it to a slew of different platforms, services, and experiences, and you’re just starting to scratch the surface of what the metaverse could become.