You’ve probably heard of the metaverse by now. If you haven’t, we’ll try and break it down in this article. Facebook announced last week that they would rebrand the company to Meta and aim to become a metaverse company more than a social media company. It will probably be the word of the year after the announcement! What does this mean, and what is the metaverse?
The word is a blend of the prefix meta (meaning beyond) and universe. There is no formal meaning of the word, but it first appeared in a science fiction novel authored by Neal Stephenson in 1992. There are a multitude of definitions if you search for it, but in very simple terms it is considered a fully immersive online realm that looks similar to the real world, but is computer generated. The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality, virtual reality and cryptocurrencies to allow users to interact virtually.
The metaverse is unknown territory for most people, even those who have been using their virtual reality headsets for years, or have been playing immersive computer games for hours on end. The full potential and scope of the metaverse is only beginning to emerge. It is tough to explain for one main reason: it doesn’t necessarily exist! It is partly a dream for the future of the internet and partly a way to capture some of the current trends in online infrastructure. Facebook has described it as “a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you”
Piers Kicks, a young and intelligent individual who is currently one of the leading commentators on crypto assets and the Metaverse has a more intricate definition: “A persistent, live digital universe that affords individuals a sense of agency, social presence and shared spatial awareness, along with the ability to participate in an extensive virtual economy with profound societal impact.”
Imagine a world where you could sit in a boardroom meeting, go to a concert, sit with friends in a bar, cycle the Tour ‘de France route, or climb Mount Everest, but never have to leave your home. Imagine a world where education was immersive – you could walk through different landscapes to experience dolomite, sandstone or hardened lava stones. You could stand on the edge of an iceberg and look down into the ocean below it.
It appears that the goal of Meta is to create a world where people have a sense of personal connectivity with anyone one around the world – and ultimately the universe if we do find part of the population living on Mars! Mark Zuckerberg wrote in his Founder’s Letter that was released on 28 October 2021, “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. In this future you will be able to teleport as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up.”
If you think about networks in their earliest stages – connecting just the computers in an office, to getting emails, to being able to search for information on the early search engines, and then on to having all of that functionality on your smartphone, and then being able to make video calls, watch TV or check the weather in your neighbourhood, use maps for instant navigation assistance. And then it all went hands free – so you have all of that functionality and you don’t need to have your phone in your hand. Don’t think that the metaverse is science fiction – it is happening already and is advancing rapidly. Some of it is too expensive for personal use, but it is being developed and it will become more accessible just like all of the apps on our phones! With the virtual world getting bigger and bigger each day it is hard to predict how future generations will choose to interact and spend their time …
It’s hard to predict how “The Metaverse” and Facebook’s obvious move into the new realm will play out from an investment perspective. We can’t be sure who the winning companies will be, or to take the mining analogy – who will produce the spades to dig the holes. We will watch with interest and continue to look for exposure to these trends and themes in various investment vehicles and will be sure to pass on the ideas to you in our investment decisions.
As always, please feel free to make contact if you would like to discuss this topic in more detail or if it raises any questions!
The Metaverse. An Alternative Digital Economy
You’ve probably heard of the metaverse by now. If you haven’t, we’ll try and break it down in this article. Facebook announced last week that they would rebrand the company to Meta and aim to become a metaverse company more than a social media company. It will probably be the word of the year after the announcement! What does this mean, and what is the metaverse?
The word is a blend of the prefix meta (meaning beyond) and universe. There is no formal meaning of the word, but it first appeared in a science fiction novel authored by Neal Stephenson in 1992. There are a multitude of definitions if you search for it, but in very simple terms it is considered a fully immersive online realm that looks similar to the real world, but is computer generated. The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality, virtual reality and cryptocurrencies to allow users to interact virtually.
The metaverse is unknown territory for most people, even those who have been using their virtual reality headsets for years, or have been playing immersive computer games for hours on end. The full potential and scope of the metaverse is only beginning to emerge. It is tough to explain for one main reason: it doesn’t necessarily exist! It is partly a dream for the future of the internet and partly a way to capture some of the current trends in online infrastructure. Facebook has described it as “a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you”
Piers Kicks, a young and intelligent individual who is currently one of the leading commentators on crypto assets and the Metaverse has a more intricate definition: “A persistent, live digital universe that affords individuals a sense of agency, social presence and shared spatial awareness, along with the ability to participate in an extensive virtual economy with profound societal impact.”
Imagine a world where you could sit in a boardroom meeting, go to a concert, sit with friends in a bar, cycle the Tour ‘de France route, or climb Mount Everest, but never have to leave your home. Imagine a world where education was immersive – you could walk through different landscapes to experience dolomite, sandstone or hardened lava stones. You could stand on the edge of an iceberg and look down into the ocean below it.
It appears that the goal of Meta is to create a world where people have a sense of personal connectivity with anyone one around the world – and ultimately the universe if we do find part of the population living on Mars! Mark Zuckerberg wrote in his Founder’s Letter that was released on 28 October 2021, “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. In this future you will be able to teleport as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up.”
If you think about networks in their earliest stages – connecting just the computers in an office, to getting emails, to being able to search for information on the early search engines, and then on to having all of that functionality on your smartphone, and then being able to make video calls, watch TV or check the weather in your neighbourhood, use maps for instant navigation assistance. And then it all went hands free – so you have all of that functionality and you don’t need to have your phone in your hand. Don’t think that the metaverse is science fiction – it is happening already and is advancing rapidly. Some of it is too expensive for personal use, but it is being developed and it will become more accessible just like all of the apps on our phones! With the virtual world getting bigger and bigger each day it is hard to predict how future generations will choose to interact and spend their time …
It’s hard to predict how “The Metaverse” and Facebook’s obvious move into the new realm will play out from an investment perspective. We can’t be sure who the winning companies will be, or to take the mining analogy – who will produce the spades to dig the holes. We will watch with interest and continue to look for exposure to these trends and themes in various investment vehicles and will be sure to pass on the ideas to you in our investment decisions.
As always, please feel free to make contact if you would like to discuss this topic in more detail or if it raises any questions!
Asset Class Returns
The table below represents a rolling year view of the major asset class returns that we track. It offers a view of the asset classes we use to diversify your portfolio.