Turning a profit

Investing in the metaverse could pay off as the virtual world continues to grow

With technology becoming more and more ingrained within society, it seems only natural it will eventually turn into reality itself.

And, if technology companies have their way, it is going to happen sooner than we think, and, whether we like it or not.

The age of technology is no doubt upon us, and, like many things in life, money is going to be what powers it — so make sure you have some.

Making money has always, of course, been an important part of life; namely to ensure one has enough to satisfy their basic needs and wants.

The metaverse, as it has been so famously coined, will undoubtedly play an important role in turning a profit going forward.

And, with the metaverse still in its relative infancy, the opportunity to learn how to make some cash while taking advantage of what a virtual reality has to offer could provide fruitful for many years to come.

So, with that said, BOSS is taking a look at how everyone from the tech savvy to the less-technology inclined can use the metaverse to grow their pocketbook.

Buying Property

Just like in the real world, one of the smartest and safest investments in the metaverse will likely be in buying property.

Influencers have already begun picking up plots of land to add to their metaverse portfolios, purchasing lots in virtual destinations such as Decentraland and Upland.

“For me, digital real estate and the metaverse will be playing a major role in how humans communicate, transact, and interact,” a writer by the name of Cheryl wrote in a column published on StackedHomes. “As such, buying digital real estate in the metaverse is like putting your stake into the next wave of technology, commercialism, and ways of socializing.”

You won’t be using traditional U.S. dollars to buy land in these places, however, instead using customized cryptocurrency — such as MANA or SAND — specific to each location.

The value of these cryptocurrencies will vary. As of April, the value of MANA — the digital currency used in Decentraland — is worth around $2.

The cheapest property in Decentraland, meanwhile, will set you back 3890 MANA, or the equivalent of around $8,000.

Now, while that may seem like a pretty penny for virtual property, the idea is that, just like property in the real world, it will likely increase over time as the metaverse becomes popular.

“It is pretty much like buying real estate in a country. Just that this country is a digital one, and people are not really living inside it,” Cheryl wrote on StackedHomes.

So, like everything in life, the payoff won’t happen overnight, but, for those willing to invest, it has a high reward down the line which should get rid of any temporary buyers’ remorse.

“Buying real estate crypto is one of the most speculative investments that you can make,” Teddy Stavetski, a marketing and finance expert, wrote on Investment U. “If that metaverse ends up taking off then it could be like buying land in Manhattan back in the 1700s.”

Buying Ad Space

Advertising in the metaverse is also an option. Once the metaverse starts to fill up, it should only be a matter of time before a lot of eyeballs begin to focus on certain areas.

Choosing to buy ad space in the metaverse could mean buying a billboard, which could be used to promote a real-world product or online foray, such as a YouTube channel or Instagram account.

A virtual brand could also use a billboard to promote clothing it creates and sells for individual avatars, while real-world brick-and-mortar restaurants could promote delivery options to metaverse users  trying not to leave the house.

These billboards, which are likely to live either in a virtual town square or along a busy highway, could also potentially be bought and rented out to other advertisers.

Buying Metaverse Tokens

Having digital currency for places such as Decentraland and Upland will not only allow you to make purchases, but also could end up being a wise — and financially fruitful — long-term investment.

“This is like dipping your toe into the water instead of doing a cannonball,” Stavetski wrote. “For example, instead of buying land in Decentraland, you could just buy and hold MANA.”

In order to get started collecting digital coins such as MANA and SAND, an individual will have to get a crypto wallet which can be used to store cryptocurrency.

Popular options of crypto wallets include ones by MetaMask, Coinbase, and Binance. The coins in a crypto wallet can then be used to buy, sell, and trade on cryptocurrency exchanges, similar to how the stock market operates.

“If these projects do end up taking off then their tokens will probably increase in value. If they don’t then it will be much easier to unload your token than a parcel of land. This is one way to reduce your risk while still getting exposure to real estate crypto projects,” Stavetski wrote.

Currently an unregulated industry, cryptocurrency trading could end up increasing your bank account over the long and short term, but just like playing on the real stock exchange, it certainly does not come without risk.

NFTS and Digital Items

For the metaverse to function, it needs creators to make the digital items which ultimately makes it feel like a real world.

Elements and items like avatars, cars, homes, clothing, and homes all come from the imagination of graphic designers, who are able to turn a profit on their virtual creations.

In addition to virtual items, an individual could sell art or music. These pieces are already being sold by influencers, bands, musicians, and artists as non-fungible tokens (NFTS).

“Non-fungible tokens belong to a nascent industry that has taken the world by storm,” Jurica Dujmovic wrote in a column for MarketWatch. “As it matures, however, NFT technology will overcome its growing pains and show its full potential, powering the future global digital economy.”

High end brands have already gotten in on the act. Gucci, for example, has already begun to create clothing stores inside the metaverse which promote their new digital product line.

“Selling art requires a special connection between the artist, the work and the buyer,” Dujmovic wrote. “NFT technology and marketplaces facilitate this process and help artists get the exposure they need in order to share their vision with the world.”