We’re nearing the next evolution of the internet… Facebook is going “all in”… trillions of dollars will flow from this digital creation

 

Can you name what’s being referenced in the quote below?

We believe that this is going to be the successor to the mobile Internet.

You’re going to be able to access (fill in the blank) from all different devices and different levels of fidelity from apps on phones and PCs to immersive virtual and augmented reality devices.

Have your answer?

If you’re unsure, here’s a clue…

The quote comes from Facebook CEO, Mark Zuckerberg. And the idea being referenced is so important to Zuckerberg that it’s estimated he’s spending about $5 billion – per year – on its development.

We’re talking about the Metaverse.

If you haven’t heard of it, let’s change that, because what’s coming is nothing short of transformative. So much so, that Zuckerberg said he’s going to change Facebook from being a social-media company to a “metaverse company.”

Think about how crazy that is.

With Facebook, we have arguably the most important social media company in the world. And it’s going to reposition its entire identity and strategy because of this one technological creation.

Mindboggling.

But it’s not just Facebook. A “who’s who” of major companies are scrambling to be on the cutting-edge of what’s happening.

There’s Microsoft – from CEO, Satya Nadella:

As the digital and physical worlds converge, we are leading in a new layer of the infrastructure stack, the enterprise metaverse.

Nvidia – from CEO, Jensen Huang:

We built Omniverse, a platform for virtual collaboration and virtual worlds to enable tens of millions of artists and designers to create together in their own metaverse.

There’s even Disney – from Disney’s Chief Technology Officer, Tilak Mandadi:

Imagine a day where guests can explore with pirates, train with heroes, dance with royalty, and visit a galaxy far, far away without ever leaving their home.

Today, let’s make sure you’re aware of what’s happening here. We’ll also highlight some of the companies most actively involved right now.

Bottom-line, we’re still very early in the build-out, so don’t expect lifechanging profits tomorrow. But they’re coming.

Let’s jump into the Metaverse.

***The blurring of the divide between physical and digital worlds

Right now, you and I are standing on the edge of the creation of an entirely new world. There are lands to explore, fortunes to create, and people to meet…

But there’s a twist.

This world – while very real – is a digital world.

It’s an immersive, alternate reality that, while existing only on the blockchain network, is incredibly real.

This is the metaverse – a virtual, 3D world where you, through an avatar, socialize, work, play, create, and basically…exist.

Here’s how Forbes describes it:

Today, the metaverse is a shared virtual space where people are represented by digital avatars (think Ready Player One).

The virtual world constantly grows and evolves based on the decisions and actions of the society within it.

Eventually, people will be able to enter the metaverse, completely virtually (i.e. with virtual reality) or interact with parts of it in their physical space with the help of augmented and mixed reality.

The easiest way to envision this is through MMORPG games like World of Warcraft.

MMORPG stands for “Massively Multiplayer Online Role-Playing.” It references a game wherein millions of people occupy and play in the same online world.

But it’s hardly limited to gaming. Humans are beginning to congregate in digital worlds in many new ways.

For example, Berkely students weren’t able to have a normal graduation last year due to the pandemic.So, what’d they do?

They recreated their entire campus within the hit game, Minecraft, then held a digital commencement.

It was a normal ceremony including graduates walking up to the stage to grab their diplomas, like this:

The Metaverse will be a place where you can work, take a class, create your own art, go to a concert, and just hang out with your friends.

Back to Forbes:

The metaverse will become the new hangout spot for billions of people around the world. For many, it will replace the mall or loitering in the city.

As it develops, it’s inevitable that folks will spend the majority of their time in this virtual world.

***Monetizing the metaverse

So, how, exactly, are companies going to make money in the Metaverse?

Like normal – just digitally.

For example, the painting that you create within the Metaverse? You can sell it to someone so that they can virtually hang it in their virtual home.

Or perhaps you want a new Gucci jacket to make your online avatar look especially trendy? You’ll have to shell out some bucks for that.

Or maybe you want to buy some real estate in Upland (the earth’s metaverse mapped to the real world). It’ll cost you. Of course, like physical real estate, you could make a lot of money when you flip that same property to someone else down the road.

Here’s Facebook’s plan for profiting, from CNBC:

Advertising will still play a role, but Facebook will focus on the sale of virtual goods.

Zuckerberg said advertising in the metaverse will be “an important part” of Facebook’s strategy to profit off the metaverse, but he sounded more bullish on commerce in the digital world.

Many consider some of today’s video games like Microsoft’s Minecraft, Roblox and Fortnite early versions of what a metaverse could be. Those free games make money by selling virtual goods to players.

Zuckerberg hinted on the earnings call Facebook would copy that strategy to make money in its own metaverse, taking a slice of every transaction.

“I think digital goods and creators are just going to be huge… in terms of people expressing themselves through their avatars, through digital clothing, through digital goods, the apps that they have, that they bring with them from place to place,” Zuckerberg said.

“A lot of the metaverse experience is going to be around being able to teleport from one experience to another. So being able to basically have your digital goods and your inventory and bring them from place to place, that’s going to be a big investment that people make.”

***So, how can you, personally, make money in the Metaverse?

How to profit covers a wide spectrum…

If you have the technical chops to be a part of the metaverse development, the money is huge. For example, Forbes recently reported on 20-year-old gaming developer, Anne Shoemaker. Between March and August of last year, she made $500,000 as a developer.

You could also look to flip NFTs, which stands for “non fungible tokens.” NFTs are unique digital assets. For example, a moment ago, we used a hypothetical illustration of you creating a painting within the Metaverse. That’s an example of an NFT.

Another way to play it would be through select cryptocurrencies.

From Coindesk:

The price tags for these “non-fungible tokens,” or NFTs, might seem daunting, inaccessible or downright ridiculous to the average person.

That’s why some cryptocurrency traders, rather than buying NFTs directly, are buying digital tokens affiliated with the marketplaces that have popped up for trading NFTs.

This way traders can bet on the NFT industry’s growth without having to go all-in on some sky-high priced digital artwork or trading card.

Investors think these tokens “can serve, in a way, as index bets on the growth of the NFT marketplaces they power,” said Alex Gedevani, research analyst at Delphi Digital.

For this approach, I’d point you toward our crypto specialists, Luke Lango and Charlie Shrem, and their newsletter, Ultimate Crypto.

Luke, a Caltech grad, recruited two additional Caltech alums to be part of their research team. One of these experts spends his spare time creating his own NFTs on the WAX blockchain.

From Luke:

I’d venture to say there is no greater collection of intellectual firepower in the cryptocurrency world – and we’re dedicating all of that firepower to help you discover the next best altcoin opportunities right here, in Ultimate Crypto.

You can learn more by clicking here.

By the way, today, Charlie released the latest episode of his podcast, Untold Stories. It features Luke as his guest, and the topic centers around building generational wealth through cryptocurrencies. Click here for this great listen.

***But what about stock opportunities? Which companies are most involved today?

For a few ideas, we can look to the new Roundhill Ball Metaverse ETF (META). It holds 50 stocks that are actively involved in the Metaverse.

The top ten holdings in META, by weighting, are:

• Nvidia
• Tencent
• Microsoft
• Roblox
• Autodesk
• Taiwan Semiconductor
• Unity Software
• Qualcomm
• Amazon
• Fastly

But some of the lesser-weighted stocks are even more interesting – Bilibili, Autodesk, and Vuzix, to name a few.

The metaverse is coming, and as this digital world grows, the amount of money attached will be staggering. A few well-place dollars today could turn into tomorrow’s windfall.

We’ll continue to update you on ways to invest in the months ahead.

Have a good evening,

Jeff Remsburg