Should You Start Investing in the Metaverse Now?

man wearing a VR goggles

Although disruptive innovations in any business sector are guaranteed to receive some opposition, nothing comes close to the buzz generated by the Metaverse, especially considering the mountains of cash people are investing in getting that first-mover advantage. And while the vast majority of people are still skeptical about its real-life applications and functions in everyday living, there’s no denying that people are already profiting from their speculations through the power of NFTs and all things blockchain development.

As a result, it now begs the question of whether your average joe, like many of us, should start considering the notion of getting into this Metaverse shenanigans, or if it’s something people will have to wait for on the sidelines before getting anything substantial. And in order to make sense of all the hustle and bustle surrounding this topic, we’ll be exploring the arguments that support and go against the Metaverse working out for you.

It’s Still A Niche Market without Any Strong Support

While it might seem like the Metaverse now governs the world since people can’t go a day without reading a news article singing its praise or sharing another success story, it’s still a pretty niche market without any strong support to back up its technicals. And even if it can continue to rely on the hype and word-of-mouth marketing that create its inherent value, there are zero guarantees that everything will play out perfectly in the long run. So how will it play out? Here are a few scenarios:

  • If the Industry Folds, so Will Your Investments: First, given the situational bullish momentum surrounding this emerging industry, all your digital investments can go down the drain in an instant if it fails to catch on in the next few years. For example, Meta’s shares already experienced a sharp decline in price, and while the transition is fueled by innovation, nothing is ever too big to fail. So while some people are riding high now, it’s a safe bet that there’s a select few at the top already preparing their exit plans.
  • Even if It Works Out, There’s Still Volatility: Second, on the off chance that the emerging industry manages to establish a foothold in the digital landscape of the future, anything built on the blockchain and crypto economy is well-known for its volatility. As a result, these risk indicators may not be the most amenable for sustainable investors because sudden bursts of higher highs followed by steep corrections hit too close to a gambler’s persona. Of course, that’s not to say it can’t work; it’s just not for everyone.

Digital currency concept photo

Some Recent Developments Suggest Otherwise

Of course, this won’t be a fair comparison if you only took apart its downsides; there are some recent developments that suggest otherwise and signal further growth. Specifically, people have seen an increase in trading volume of NFTs, more people buying virtual plots of land, and retail traders holding out strong in this crypto winter. Here is a quick explainer on these developments:

  • Growing Influence and Trading Volume of NFTs: For better or for worse, NFTs have been gaining traction all around the world. While not all the online feedback has been positive, all publicity is good publicity. In recent, the trading volume has been progressively increasing, with more and more creators debuting their collections through different platforms like Twitter and other social media. And with prominent companies like YouTube seriously considering adoption, the NFT future is a lot more real than it seems.
  • More People Are Buying Out Virtual Real Estate: Besides NFTs, more people are investing in virtual plots of land through Decentraland, Sandbox, and many other open-world platforms. And while the idea of digital real estate sounds like something straight out of science fiction, Metaverse real estate sales are expected to double this time around. Soon enough, these digital chunks of property scattered in the Metaverse will likely rival the home prices of mansions.
  • Optimistic Outlooks Surrounding Crypto Winter: Last but not least, there’s no denying that the current trading prices and market share of most cryptocurrencies aren’t doing too great and have entered a crypto winter. Despite the seemingly negative news and its adverse impact on investment outlook, most retail investors are optimistic that we’re just building up more volume for the next bullish push upwards. And if sentiment can stay positive for years to come, this will signal more investors to have faith in their capital outlay allocated for the Metaverse. Furthermore, as far as risk appetite, make sure to balance things out with diversification and investing in a robust business like or historically proven returns with index funds. That way, you won’t have anything to worry about in the long run.

Don’t Jump into Any Investment without Due Research!

At the end of the day, no matter how good or bad something sounds as an investment, never jump to conclusions with financial decisions because that’s the quickest way of regretting your actions. So, whether it’s investing in the Metaverse or waiting things out a tad bit more, always do your extra bits of research to confirm any of your questions.

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