4 Ways to Invest in the Metaverse

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This crypto bear market has been brutal.

Bad news keeps popping up left and right.

Big NFT projects have been getting dumped in the past weeks.

And now Twitter, where most of the crypto community lives and interacts, is limiting usage of its platform.

This is the most negative feed I’ve seen—yet, I couldn’t be more bullish.

The shift to a digital world isn’t slowing down. And now is the time to take advantage of opportunities while others are fearful.

Over the past couple of weeks, we’ve been talking about the Metaverse: what it is, how it works, and how it’s more than just a VR world. (If you missed it, here’s last week’s newsletter.)

Today, we’re going to talk about 4 different ways to invest in it.

Bear markets are for planting seeds for the bull market. If you’re still here despite all of the fear, you’re way ahead of the curve.

Before we get started, one important note: I’m not a financial advisor.

I’m just a dude on the Internet sharing my investing approach, what I’m looking at, and what I invest in.

Let’s get into it.

1. Ethereum

I think of Ethereum as an index fund for the Metaverse.

Ethereum is the underlying network that powers decentralized apps, games, smart contracts, tokens, NFTs, and more.

Investing in Ethereum is like investing in the Internet itself, and its value will grow as more and more apps are built on top of it.

Instead of spending endless hours trying to search for the next lottery ticket, you can simply invest in the entire network and benefit from the growth of the overall space.

As John Bogle (pioneer of index funds) would say:

“Don’t look for the needle in the haystack, just buy the whole haystack.”

2. Bitcoin

Bitcoin remains the king of crypto.

It’s often called “digital gold” because it shares important qualities with gold. It's scarce, durable, and can’t be easily created by the government. But unlike gold, Bitcoin is much more secure, divisible, and transportable.

As we continue to move to a digital world, the need for a scarce and secure digital asset will grow.

3. Decentralized Storage

Just like we need storage for stuff in the physical world, we also need storage in the digital world—and we’re gonna need a lot of it.

It’s estimated that more than 2.5 quintillion bytes of data are created each day. (Quintillion = 18 zeroes. Sheesh!)

That number is only going to grow as we spend more time online. And now with AI, an insane amount of data can be produced with the touch of a button. Where the hell are we going to store everything and trust that’ll be secure?

That’s where decentralized storage comes in.

Platforms like Filecoin, Storj, and Arweave allow you to rent out your unused storage space or buy space to use. Data and files can be kept safe, secure, and permanent. Decentralized apps can also leverage these storage solutions for their own use.

For example: Lens, a web3 social media platform, uses Arweave to store posts, comments, like, etc.

Investing in decentralized storage gives you a stake in the digital real estate of the Metaverse.

4. Gaming Tokens and NFTs

Finally, one of the most exciting aspects of the Metaverse: gaming.

Until now, games have been closed off. But with gaming tokens and NFTs, you can own a part of the game and take part in the growth of the platform.

Gaming tokens are used for more than in-game purchases. They can also give you the power to vote and decide the future of the game, like owning stocks. The more the game grows, the more valuable these tokens can become.

NFTs can be characters, skins, weapons, or any in-game item. You can sell them or lend them out to other players and earn a passive income. The rarity of specific NFTs can also drive their value up.

For example: ICE Poker’s digital skins allow you to customize your character and give you access to specific game modes.

Instead of equipping them to play myself, I can lend them out to other players for a reward split.

We’re in the early stages of web3 gaming. Many games are under development and I’m hyped to watch this industry grow.

Peace,

Fifty Sat

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