How the Metaverse can affect your finances

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The metaverse has been more than a buzzword for a while now. However, over the past two years, the theory has slowly fallen back on reality.

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While the concept has become more and more familiar, it is still difficult to wrap oneself around what the metaverse is. Here’s a quick and insightful analysis of what the metaverse is, how it could grow in the future and how that growth could ultimately affect your personal finances.

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What is metaverse? Brief definition

The term “metaverse” was coined by Neal Stevenson in his 1992 novel “Snow Crash,” in which the digital world features prominently in a dystopian future. Since then, the term has come to represent a growing virtual reality accessible to humans using virtual reality interfaces.

As in Stevenson’s novel, the real-life metaverse also hinges on core concepts, such as personal avatars and the ability to spend digital money of real value to buy digital real estate – and also of real value. Beyond the business side, Polygon broadly defines the equation as “a graphic-rich virtual space, with a certain degree of realism, where people can work, play, shop and socialize—in short, do the things humans love to do together in real life (or maybe More than that, on the Internet).

Jeff Wong goes beyond just a metaverse function. EY’s chief global innovation officer sees the online world as “an inevitable next step for our world after the shock of the COVID-19 pandemic.” Wong believes that the metaverse has the potential to build a bridge between the physical and virtual worlds.

The CEO concludes that “the transformative impact of metaverse will spread to most sectors outside of media and entertainment.” This effect, he adds, can extend from trying to get dressed to training for a job to going to the doctor.

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How can the Metaverse affect finances

While the metaverse has a lot of potential, it is still in an early stage of development. Early iterations of the metaverse – or more accurately, the metaverse – were visible over a decade ago in the advent of MMORPGs (Multiplayer Online Role-Playing Games). I set this tune by creating vast virtual worlds with immersive and fun experiences.

Since then, platforms like Decentraland and The Sandbox have led the way in developing digital reality beyond games. Big companies, such as Meta (formerly Facebook), are also embracing the potential of the metaverse as well, riding the wave right into virtual reality.

Live events, such as concerts and auctions, are already taking place. Companies followed suit, too, like when Prager Metis opened his first-ever CPA company in the metaverse for $35,000.

While the metaverse is still full of potential, it appears that individuals may be feeling its impact sooner than previously thought. With that in mind, here are some of the ways the metaverse can affect your personal finances if it continues to gain momentum.

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Using the Metaverse will come at a cost

The most obvious impact the metaverse can have on personal finances is the cost of, well, the use it.

There is a huge amount of capital that must be devoted to creating and maintaining a digital infrastructure like The Sandbox. This is not a charitable activity, of course. As a matter of business, metaverse companies will naturally shift expenses to those who use the platforms to build their digital lives and experiences.

Metaverse can open investment opportunities

There will be an increasing number of ways to spend money in the metaverse. However, it also opens up endless opportunities to earn money.

Already, many people are acquiring real estate – digital “properties” that they legally own and that are likely to increase in value. They can also invest in metaverse cryptocurrencies, such as Decentraland’s original MANA token.

In addition, the metaverse has added fuel to the already growing NFT industry, providing a platform to showcase the ever-growing global collection of digital art. This may inflate the value of this virtual art, making it a good long-term investment in the process.

Companies will move to the Metaverse in greater numbers

Regardless of whether consumers view the metaverse as an opportunity or something to avoid, it is likely that they will direct their personal finances in that direction somehow in the future.

why? Because companies are already flocking to the metaverse. Even if they don’t take the leap like Prager Metis, companies around the world are sitting back, nurturing and preparing for whatever metaverse-driven future it can hold for their organizations.

If companies end up moving into the metaverse as the new normal, there’s a good chance consumers will need to adapt to the shift if they want to continue their patronage.

There are many ways the metaverse can affect life as we know it – and personal finance is high on that list. From spending money to investing it to making basic financial interactions, such as making a purchase, the metaverse could play a much bigger role in the future of personal finance than many individuals currently understand.

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About the author

With eight years of experience working in personal finance at GOBankingRates, Jaime Catmull has amassed an extensive network of influencers and financial experts. Now, you’re eavesdropping on that network to get the real scoop on how to live your best financial life and increase your wealth.

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