Stop what you’re doing and read this now.
Before you dismiss this topic or get confused… know that 99% of the population is completely ignoring this new trend.
Most people don’t think this is real.
Or they think it’s too complicated…
Or they think it’s some passing fad…
Or they just think there is no way they can get involved…
But as I’ll show you today, that couldn’t be further from the truth.
Trend Alert: The Metaverse Will Mint Billions
I’ll be honest with you… I’m not really a tech geek. I don’t play video games, and I can operate a computer at a grammar-school level at best.
I’d rather get my hands dirty by going camping or surfing.
However, when I see an obvious trend that most people are ignoring, I immediately know there is an enormous opportunity to create massive amounts of wealth.
I’ve done it with real estate in Central America… I’ve done it with cannabis… and, most recently, I did it with psychedelics.
This is exactly what I see with the “metaverse.”
To be fair, there is already a lot of traction in this market. The metaverse is not as “hidden” as other private investment opportunities. But the sheer size of this new trend makes up for the fact that there are already billions of dollars being made.
For example, Microsoft (NASDAQ:MSFT) CEO Satya Nadella said:
“When we talk about the metaverse, we’re describing both a new platform and a new application type, similar to how we talked about the web and websites in the early ’90s.”
Jensen Huang, the billionaire cofounder and CEO of Nvidia (NASDAQ:NVDA) has said:
“I’m fairly sure that at this point that Omniverse or the metaverse is going to be a new economy that is larger than our current economy.”
These are not passing statements by random internet trolls. These are the CEOs of some of the biggest tech companies in the world vouching for the power of the metaverse…
And their companies are going all in on this trend.
Of course, you’ve heard about Facebook rebranding and changing its name to Meta Platforms (NASDAQ:FB).
CEO Mark Zuckerberg described exactly what his company is doing in a recent Founder’s Letter.
“We are at the beginning of the next chapter for the internet, and it’s the next chapter for our company too… In the metaverse, you’ll be able to do almost anything you can imagine — get together with friends and family, work, learn, play, shop, create — as well as completely new experiences that don’t really fit how we think about computers or phones today.”
Whether or not you “buy” the idea of the metaverse, if you’re here I know one thing for:
You’re an investor who is looking for unique opportunities, with massive upside potential, that you can exploit to your advantage.
That is why we need to learn about the metaverse…
Defining Our Terms
The ancient Greeks used the word “meta” to refer to “after,” “behind,” or “beyond.” When combined with “-verse” (in reference to “universe”), the metaverse is, essentially, an alternate universe.
Logistically, a metaverse is an alternate digital reality where people socialize, work, play, and transact. If you’ve used virtual reality or massively multiplayer online (MMO) video games like Second Life and World of Warcraft, you’ve participated in “proto” versions of the metaverse.
Now, developers are building metaverses on blockchains, where they are self-contained virtual cities and economies that simulate real-world interactions. This is what Facebook/Meta Platforms plans to do.
Think of a metaverse as the social media portion of the internet brought to life. The current generation of social media is about sharing, but the next generation — the metaverse — is going to be about participating.
It’s a virtual environment you can go inside of — instead of just looking at on a screen.
It is a virtual game or world that has everything you could ever want.
Essentially, it’s a world of endless, interconnected virtual communities where people can meet, work, and play by using VR headsets, augmented reality glasses, smartphone apps, and other technology.
Metaverses can also incorporate other aspects of online life, such as shopping and banking.
It’s the next evolution of connectivity.
The Metaverse Is Gaining Traction
Look, you don’t have to love the idea of the metaverse to make money off it. The metaverse is gaining traction…
Just look at some things that have happened over the last several months…
- Decentraland (CCC:MANA-USD), a blockchain metaverse platform, recently saw a “property” sell for $1.3 million.
- According to the Financial Post, “Tokens.com Corp. purchased a 50% stake in Metaverse Group [in September] valued at about $1.7 million.” Metaverse Group is a metaverse real estate company. It’s set to compete with other virtual real estate companies that are already gearing up to launch tradable real estate investment trusts (REITs).
- Animoca Brands, a company that delivers digital property rights to gamers via non-fungible tokens (NFTs), recently raised nearly $90 million. The fundraiser was based on the company’s valuation of $1 billion and included investors such as the Rothschild Investment Trust.
Keep in mind that these are examples of “digital real estate.”
That means millions of dollars are changing hands for the rights to own “plots of land” in a digital universe.
If that sounds completely insane to you, don’t worry — you’re not alone.
That is why most people are ignoring what is going on. This seems too far-fetched and ridiculous to even spend time learning about. (On the other hand, those of you with kids or grandkids who play Roblox (NYSE:RBLX) or Fortnite 22 hours a day might be starting to figure things out.)
But I am certain that the metaverse will be one of those things that you’ll look back on with regret if you don’t get involved. (Think Bitcoin (CCC:BTC-USD), circa 2010.)
From an investment perspective, you can take the easy road and just buy stock in companies, such as Meta/FB, that are jumping on the metaverse trend.
But that’s not how I maximize returns on new trends.
The most strategic and profitable way to target a new trend is to find private companies that haven’t hit the public markets yet.
There is far, far more upside in private companies… especially private companies that are targeting trends in their infancy.
For starters, here are three ways you can invest in privately held metaverses right now…
- Invest in a REIT and let it take care of your investment for you. Conveniently, you can just go to MetaverseREIT.com.
- Rent out properties if you have goods or services to sell. Right now, you can rent space in Cryptovoxels (CCC:COLR-USD), Decentraland, Somnium (CCC:CUBE-USD), The Sandbox (CCC:SAND-USD), and Upland (CCC:UPX-USD)… all metaverses.
- Purchase NFTs. These are virtual tokens minted on the blockchain for digital scarcity, security, and authenticity. They are unique, indivisible, and non-interchangeable. This allows for true digital ownership of in-game assets. Buy utility tokens or NFTs on these platforms: OpenSea or Republic.co.
This may feel overwhelming and/or downright impossible to understand.
That’s OK. It was for me too when I first started my research.
While there have already been numerous eye-popping transactions with billions of dollars changing hands on a weekly basis, we’re only scratching the surface of this metaverse trend.
Where things will end up is anyone’s guess. But as private investors, this is an opportunity we can’t ignore.
By learning about all of this now (and taking some small investment positions), we’ll be putting ourselves into a very strategic position to make enormous gains over the coming years.
We’ll be revisiting this trend in the coming months.
And we’re keeping an eye out for attractive private investments. Specifically, I’m looking for companies that are building the infrastructure that facilitates the functionality of the metaverse.
If you can’t wait another second to get involved, you can speculate on metaverse cryptocurrencies. Just be ready for a wild ride of volatility.
Editor, Venture Capital Digest
On the date of publication, Cody Shirk did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
By focusing on megatrends that will shape the future, Cody Shirk uncovers generational wealth in the private investing space. To make sure you never miss Venture Capital Digest, click here to subscribe.