The Metaverse & NFT’s: Should You Invest?

I’ve had a lot of people ask me about the metaverse and NFT’s. It’s an area many of you don’t immediately click with, or simply don’t get the hype.

And I totally understand!

From an ethical point of view, the metaverse rubs many people the wrong way. I mean, it’s essentially getting people to disengage with the real world and immerse themselves in a fake one while they sit on their couches!! It’s the opposite of the real connection and experiences so many of us feel are important.

However…

Big companies such as Apple, Microsoft and Facebook are all aligning themselves with the metaverse in some way or another. With big money being invested, it’s a safe bet the metaverse isn’t going away anytime soon.

Does that mean we have to agree with it? Not necessarily. But for the impartial investor, it does present an opportunity.

Remember that investing in crypto is all about financial freedom. And when you’re financially free, YOU get to decide who you support with your money. You get to contribute to building a world you want to live in, whatever that looks like for you.

Let’s get into it.

The Basics
The Metaverse is a computer-generated virtual world in which your avatar has experiences. You put on the goggles, and you see a completely different reality. You can play games, socialise, attend events, interact with others, buy property and even have pets.

NFT’s on the other hand, are virtual goods that reside in the metaverse, each one completely unique. NFT’s can be the artwork in someone’s house, the items you buy at a store, the dog that barks at you as you pass by, the shoes on your feet. Even plots of land are NFT’s.

You get the picture.

So why the crazy prices?
The thing that baffles people about NFT’s are their value. It seems like the strangest things can go viral. Cryptopunks is a perfect example! The cryptopunk NFT’s are overly simple, pixelated digital images, yet they’re worth millions of dollars each.

Are they valuable in our tangible 3D world? No.

But in the metaverse there is a social consensus applied which deems them collectable and sharable. There is a limited supply of them, and they are one of the early NFT’s, both of which contribute to their social status and popularity, hence they become highly valued.

By the way, if you’re curious and simply want to check out some NFT’s, https://opensea.io/ is a great website (it’s like ebay for NFT’s).

So are the metaverse and NFT’s worth investing in?
Well, in the interests of having a diversified portfolio with an allocation in growth sectors, I would say yes. In fact, I’ve put them as a megatrend for 2023.

However, we need to be smart about HOW we invest.

I personally think the big opportunity is not so much in buying NFT’s, it’s in the infrastructure of the metaverse, which allows other people to buy, trade, rent, display or utilise them. This way you can avoid playing the guessing game of which NFT will go viral, and you can put your money on the technology behind it.

And if you’re looking for projects that are building the infrastructure for these worlds, take a look at Decentraland (MANA), Blocktopia (BLOK) and ImmutableX (IMX).

It’s important to remember, there is an incredible amount of work that goes into building these worlds, so it’s more of a long-term play. But as mentioned, I don’t see them going away anytime soon.