Why is everyone talking about the metaverse?

What is the metaverse, who are the major players involved in its creation — and why investors need to be paying attention to this tech megatrend right now

Have you heard the word metaverse being thrown around recently？ Chances are you have. The buzz around this relatively new term started when Facebook officially changed its corporate name to Meta, and released an hour-long explainer video (which you can watch here). But beyond the hype, what is the metaverse, really？

A reality that you help create!

The metaverse — a phrase first coined in a 1992 science fiction novel, which told of a virtual world where people inhabited digital avatars — today refers to an expansive network of real-time online 3D worlds and simulations. Practically speaking, the metaverse is intended to be the next step forward for social media — where most of us already connect, whether for business or leisure. Imagine that, instead of interfacing through a mostly static two-dimensional platform, you and your friends can don virtual reality gear and gather together in a virtual bar (or boardroom) using digital avatars.

The metaverse is an entirely new virtual reality ecosystem being built at this very moment. What is so exciting about it is that the future potential is tremendous. Participants in the metaverse have the ability to create their own user-generated content around just about anything they can imagine. A digital universe that combines virtual and physical reality, the metaverse will be the place where “if you can dream it, you can do it” will hold true — with the power to change the way we live and experience the world. And this is only the beginning…

Virtual commerce, real growth potential

Analysts are predicting that the metaverse could become an $800 billion market — although some even go so far as to say up to $30 trillion or more — heavily influencing a huge range of industries. It is already commanding the attention of the largest companies in the world — global leaders in technology, entertainment, retail, digital payments and more. The technology required behind the scenes to support the entire metaverse infrastructure in bringing people together virtually is vast.

First, there are the physical products that allow users to connect to a virtual world: smart phones, consoles, virtual reality (VR) headsets, augmented reality (AR) glasses — and the list will likely expand as the metaverse itself does too.

Then, there is the underlying technology needed to make everything work. High-powered semiconductor chips, sophisticated 3D computer graphics and video, connectivity and cloud infrastructures, and software — lots and lots of software.

The foundation of the metaverse is virtual real estate built on decentralised blockchain-based platforms which are capable of supporting infinite and fast-growing virtual realms. Adding the next layer of virtual living are content developers, including real-world brands we already know and love providing immersive digital versions of their products and services. And, of course, digital currency (aka crypto) — for how else would one pay for virtual goods, if not virtually？

A new frontier, ripe with potential

By now, you are probably getting a better sense of just how huge a vision the metaverse has, how far-reaching its influence, and how enormous the potential still is at this moment in time. Now you have the chance to be a pioneer in this exciting new world, as one of the first to invest in the metaverse as it is still emerging.

But with so many different elements involved in the metaverse, and so many players, how can you begin to take advantage of the huge potential that this technological innovation presents？ How do you choose which assets, or even which sectors, are worthiest of your investment？

As seasoned investors know, the smartest route to a solid portfolio — one that can include top trends while minimising risk — is diversification. That is precisely why eToro has created the MetaverseLife Portfolio: a single investment product encompassing all aspects of this revolutionary trend — stocks as well as crypto — together in one place. MetaverseLife takes the eToro Smart Portfolio approach and bundles together a variety of assets under a unified strategy, offering diversified long-term investment in this game-changing technology with no management fees and no hidden charges.

This product includes stocks and cryptoassets. Your capital is at risk. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.

This product includes stocks and cryptoassets. Investing in cryptoassets is not regulated in some EU countries. Your capital is at risk. No consumer protection.