You know a new technology is important when one of the biggest companies in America changes its name to reflect the new product. In October 2021, the company formerly known as Facebook (FB) changed its name to Meta (FB) to reflect its changing focus. The name Meta refers to the metaverse. Meta (FB) may have its social media apps — Facebook, Instagram and WhatsApp— but it is looking toward newer technology.
The metaverse is a combination of virtual reality, augmented reality, blockchain and social media. It is a network of 3D virtual worlds focused on social interaction using virtual reality headsets. To put metaverse in theatrical terms, movies like “Avatar,” The Matrix (one of my favorites), “Ready Player One,” and the classic, “Tron,” represent what virtual reality is in science fiction terms.
While the current metaverse is not as advanced as the movie versions, it is making huge strides in the real world. With the largest companies spending billions on research and creation, the metaverse is coming, like it or not. Eventually, people will routinely use virtual avatars (an avatar is a graphical representation of a user’s character or persona) to work, play, shop, etc.
Metaverse is a real-time video game where people create their avatar (Want to have blond curly hair and look like Barbie? Congrats, you can in the metaverse.) and is the next iteration of social media.
Apple (AAPL) stock is benefitting from the belief that it would gain from “a broad embrace of digital alternate realities.” Tim Cook, the chief executive officer of Apple, said the metaverse would be a critically important part of Apple’s future. Analysts think Apple would be a big player with hardware and software for the metaverse.
There is plenty of discussion of the cost increases in real estate in the real world. According to Ellen Kline, a realtor at Kissinger Bigatel & Brower in State College, states that, “Housing prices in State College Area School District have increased approximately 9% from 2020 to 2021.” Sounds like a pretty good rate of return. Digital real estate prices in the metaverse have gone up 400-500% in the last few months. That’s right: people are buying land that doesn’t exist in a world that doesn’t really exist. For instance, according to CNBC, Tokens.com (SMURF), a Canadian company which invests in metaverse real estate and non-fungible token-related assets (read: NFT) recently spent $2.5 million on a land in Decentraland, a metaverse world. Given the large increases and the fact that these places are just ones and zeros, the risk is high. Snoop Dogg must not have enough physical real estate as he is building a virtual mansion in Sandbox, another metaverse world. According to Business Insider, the cheapest plots of metaverse land are selling for $11,000.
The pandemic limited our social interactions and our ability to enjoy entertainment. Clubs were closed and concerts were canceled. In the metaverse, interaction is virtual. Ariana Grande did a tour on “Fortnite,” called the Rift Tour. It wasn’t just a one-time musical event but included “tie-ins” with aliens, other “Fortnite” stories and imagery along with smashing fans with a bejeweled hammer. Now, her avatar is available as a “skin” so players can play as Ariana Grande in the game. In the metaverse, you can go to a museum without ever leaving your home.
I have used my husband’s Oculus headset (an AI headset available from Meta (FB), the company formerly known as Facebook) and played a Star Wars and Angry Bird video game. It is surreal to step into another world that looks real to your eyes but has no concrete reality. I do think I’m getting old as I don’t see the big attraction to a full-blown world to live-in, buy unreal things and see people only as avatars and I am an introvert.
I believe it will be one more area of entertainment to compete with books, TV, the internet and movies. How big will that area of entertainment become? Andrew Kiquel, CEO of Tokens.com (SMURF) anticipates the metaverse will become a $1 trillion dollar business in the near future.
