Can you invest in the Metaverse? Values ​​to get on the bandwagon

The shortest and most direct summary: the Metaverse does not exist, but it can be reversed indirectly if you know how. Next, the Bankinter experts explain the most important things we need to know.

The Metaverse is just a concept. Perhaps the most recent technological concept, but one that has its origin in a 1992 novel (Snow Crash by Neal Stephenson). This book described a virtual world, parallel to the real one, where all its users could interact in a very similar way to the real one; and Facebook rescued this concept.

But, to this day, the Metaverse concept has not changed: it is still just an idea on paper without any tangible development. In other words, it is a technology that (for now) does not exist.

What is (or wants to be) the Metaverse?

The Metaverse is a virtual world, parallel to the real one, where users can design their own life and relationships. A world in which you can choose from the most basic concepts (name and physical appearance) to skills and profession of the “character”. In this world, social relationships, professional activities (virtual work) and commercial transactions (purchases for that virtual life) could take place.

Goal of the Metaverse

Create a common environment for other types of technological concepts that already exist but whose application is very complex (or impossible) in the real world:

Of these six technologies, Bankinter experts refrain from issuing a recommendation in the first three because “one of our basic rules is not to issue a recommendation on what we do not understand well and / or it is unnecessarily complex to understand, such as cryptocurrencies or any other digital intangible assets such as those mentioned above (NFTs, digital Real Estate, etc.) “. From the entity they believe that they are pseudoactive with very high risk factors:

– Lack of regulation / supervision

– Extraordinarily high price volatility

– Anonymity of issuers (loss of trust)

– Absence of financial fundamentals

But they do see it possible to invest in it indirectly through companies that produce the hardware or software foreseeably necessary for the creation and use of the Metaverse.

The development of the concept is led by Facebook. In fact, he recently changed the group’s name to Meta (short for Metaverse) to make his strategic intentions clear. As an example of Meta’s vision of the concept, they are developing gloves and other accessories that are capable of transmitting virtual sensations in the user’s body.

Besides Facebook, there are many other listed companies satelite who want to participate in its development:

Microsoft (software y hardware)

Nvidia (graphics cards and processors)

Roblox (video game)

Apple (software y hardware)

Autodesk (digital design)

Activision (video game)

ASML (semiconductors)

Qualcomm (semiconductors)

Seagate (physical storage and cloud)

Advanced Micro Devices (semiconductors)

Shopify (online commerce)

TSMC (semiconductors)

All the companies mentioned have solid businesses within the technology sector (production of computers, mobiles, consoles, professional or home software, video games, computer components, …). And, at the same time, they will be necessary to fully develop the concept of Metaverse because of their dominant position in their respective sectors.

That is, the analysts point out, they are an indirect investment option in the Metaverse because they would benefit if the concept is successful but without assuming the unique and direct risk of the Metaverse because the future of their main businesses is absolutely independent of the success or failure of the concept. .

Meta (Facebook) has set a period of 5 to 10 years to develop the Metaverse. Bankinter considers that the Metaverse will come into existence as a means of social relations, a hybrid between a social network and a video game. But in no case will it replace the daily or professional life of the real world.