Explained: What is the Metaverse?
To pass judgment for ourselves, we need to start with the basics.
What is the Metaverse?
The Metaverse is a virtual world that people can use to interact with each other. It is a place where people can meet, chat, play games, shop, and do anything else that they would typically do in the physical world.
So, in that sense, it's just like the real world. But with one big difference: it's digital.
In the Metaverse, people use avatars to represent themselves. They can communicate with each other, build virtual communities, and explore the world together. You can buy and sell real estate. But in the Metaverse, because it's online, there are no limits to what people can create and do.
What does the Metaverse mean?
The word Metaverse comes from combining the words 'meta' and 'universe'. Basically, meaning a universe on top of our own universe. In this case, a digital one. The term was coined in the late 1990s by science fiction author Neal Stephenson, where it was featured in a book called ‘Snow Crash’. In it, he describes a futuristic society where people can enter a digital realm called the "Metaverse."
It's not clear exactly what the Metaverse is supposed to look like, but it sounds similar to Second Life, a virtual world that launched in 2003. In the book Snow Crash, the Metaverse is a place where people can interact with others, buy and sell things, and even learn new skills. It's a kind of digital Utopia where everyone can do anything they want. While Stephenson's book was published in 1992, it wasn't until the mid-2000s that people started talking seriously about building a Metaverse.
Facebook was one of the first companies to try and build a metaverse. After renaming the company to ‘Meta’, it launched a strategy to develop the metaverse. Meta has been one of the biggest drivers of this technology and has been a massive influence on other companies. It also gave investors a solid vote of confidence that the metaverse would be a commercial success.
How to access the Metaverse?
If you wish to access the metaverse, you'll first have to understand that the metaverse isn't one place. It's a hybrid collection of different worlds connected through Virtual Reality (VR) and Augmented Reality (VR). What this means is that, like a video game, each world is on its own, represented by 3D graphics. The metaverse, then, is a conglomerate of these worlds, and eventually, all these worlds will be connected to each other by common standards. This means that you will have to visit each individual virtual environment to access the full functionality of the metaverse.
There are several ways you can access the metaverse. First, you can buy a VR headset and use it to enter a metaverse. There are currently two main types of VR headsets: tethered and untethered. Tethered headsets connect your computer directly to the headset. Untethered headsets connect to your computer via Wi-Fi or Bluetooth. Both options have pros and cons. Second, you can access the metaverse through a web browser. This is less immersive, but it lets you access the metaverse from any device with a modern web browser. Third, you can access the metaverse using a smartphone or tablet app. These apps are available for iOS and Android devices.
How to invest in the Metaverse
One of the most exciting things about the metaverse is that it is still in its infancy. As such, there is a massive opportunity for investors who want to get involved with this emerging industry. The best way to participate in this trend is to buy NFTs: Non-Fungible Tokens. These are the digital tokens that represent a unique asset. Once you purchase an NFT, you become the owner of that asset.
Investing in NFTs in the Metaverse
This is similar to buying a stock certificate for a company, except that you are purchasing a digital certificate instead of paper. The value of an NFT is determined by its scarcity, utility, and demand. The price of an NFT is determined by supply and demand. The value of an NFT is directly proportional to the number of people interested in owning that NFT.
If you buy a NFT today, you will own that NFT forever. Unlike stocks, which trade on a stock exchange, NFTs do not have a central marketplace. Instead, they are sold on a distributed ledger called the blockchain. This allows anyone with an internet connection to trade NFTs without going through a third-party intermediary.
Investing in Metaverse real estate through NFTs
This ties in really well with the metaverse. If, for example, you want to buy digital real estate, you can purchase it with NFTs. Then, once you own it, you can visit that location in the metaverse and interact with it. This is exactly how the metaverse works. You can buy digital real estate in the metaverse, then visit it in VR to live in it.
For example, there are many online games where players can build a house and decorate it in any fashion they want. They can also invite friends over to play in their houses and even host parties there. However, those houses don't exist in real life. In the metaverse, these homes do exist. You can walk into someone's home and hang out there just as if it was a real place. These NFTs can be traded as an investment, of course! You can sell your NFTs for money if you wish. In fact, many people have already done this and made quite a lot of money doing so.
The Metaverse is a lasting change.
So, what does the metaverse mean? The metaverse is a big deal because it will change how we view virtual reality and virtual worlds. Right now, VR is mainly used for entertainment purposes, but the metaverse will allow us to do so much more than that. It will be a tool for education, business, communication, and more. We're still in the very early stages of the metaverse, but many people believe that it will be a revolutionary force in our lives in the future.
Disclaimer: This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing. Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.