In today’s Money Morning…but what IS this metaverse thing they’re building?…they can do this because they already have massive war chests…and they want to be the eaters, not the eaten…and more…
Meta, formerly Facebook, has a grand ambition.
To build the ultimate ‘metaverse’.
But this ambition won’t be achieved by Mark Zuckerberg giving presentations via his avatar…or doing three-hour podcast interviews.
Even he admits the metaverse won’t become a reality without one crucial ingredient:
Massive improvements in global telecoms networks.
He’s right.
But there are other core ingredients that will also build the metaverse’s foundations.
If you can find the companies pushing ahead with these…before the mainstream…then you put yourself in the running for very big exponential gains. (We’ve identified five such candidates here.)
But what IS this metaverse thing they’re building?
The term ‘metaverse’ first appeared in a 1992 science fiction novel called Snow Crash. It’s only recently become the label for the next evolution of the Internet.
If you want the very broadest definition, it’s this:
A reimagination of the Internet that finally connects our digital lives with our physical ones.
As Kalin Kassabov, Founder and CEO of ProTexting.com, puts pretty simply:
‘The metaverse refers to online experiences that are highly immersive, such as virtual reality (VR), augmented reality (AR) and interactive video.
‘It’s essentially taking the online experience to the next level, creating an entire world where people can socialize, conduct business and experience immersive entertainment.’
We’re able to look back and see the trajectory after previous tech ‘collision points’ like this one.
If you do, you’ll see that some giants from the previous era manage to pivot and stay strong and relevant.
They can do this because they already have massive war chests.
Others die, though, no matter how much money they have.
And no matter what they change their company name to…
In this mania deconstruction, we’re more interested in the new disruptors.
These are going to be the ‘metaverse natives’.
They’re going to use the fact that they’re small and nimble.
And can ‘break things’, as the Silicon Valley saying goes.
They’re also going to surf the fact that what was only a few years ago technically impossible is now possible…
‘The infrastructure just wasn’t there,’ says Steve Benford, co-founder of the Mixed Reality Laboratory at the University of Nottingham, UK.
‘The vision was a long way ahead of what could be done. Now the infrastructure is beginning to catch up — and perhaps parts of the metaverse can be delivered.’
Who will deliver it?
Meta might. But they’re not the way to play it
right now, as a speculative investor
Instead, as I say, you should be looking at the smaller ‘foundation builders’.
These are the problem solvers.
Take the problem of creating a global home and cellular network that is robust enough to run a ‘Web 3.0’.
As Dan Rabinovitsj, VP of connectivity at Meta, told CNBC last week:
‘“We’re working closely with our colleagues to think about what’s the next step in terms of innovation,” he said, adding that Meta is also working with cellular partners.
‘“If you really look at the pace of innovation in the telecom world, compared to other markets, it’s been harder to go faster in this space,” Rabinovitsj said. “One of the things that we’ve tried to change is that trajectory of innovation.”’
As a speculator, you want to be looking for smaller companies with the same big goal: changing the trajectory of innovation.
The current paradigm is ruled by Google, Apple, Facebook, Amazon, and Microsoft (GAFAM).
Some of those may stick right at the top.
Maybe.
But what will the new control nexus look like 10 years from now?
New technologies — the onset of 5G networks, Artificial Intelligence, Virtual Reality, Augmented Reality, and blockchain being the primary ones — are definitely converging to form…well…something.
They’re doing this with a tailwind of rising data speeds.
Nothing is certain. But it’s very possible this is a tech step change at least as big as the advent of smartphones 15 years ago.
As such, not a week goes by without another giant company — Walmart, Cisco, Ralph Lauren, Nike, etc. — trying to plant its metaverse flag.
And as sure as the sun rises, Wall Street’s falling over itself to rush out products for hungry investors.
All classic mania-phase-one characteristics.
And all because many of the first movers here hope whatever emerges will someday eat the old Internet entirely.
And they want to be the eaters, not the eaten…
In a distributed, democratically-ruled online galaxy that’s exploding…like a Big Bang…from the corporate-ruled web 2.0 we currently live in.
At least, that’s what the hype people and armchair technologists on Reddit are saying.
Wired magazine promises it will spawn ‘the wealthiest, most powerful people and companies in history.’
But let me just repeat so you’re really clear…
No one — no matter how convincing they may sound or how much money they’re bankrolling or what tech unicorn they started — can REALLY pin down the metaverse right now.
Not what it is. Nor what it’s set to become…as we phase from science fiction to fact.
Ask 100 people what the metaverse actually is and you’ll get 100 different answers.
‘I’m deeply skeptical of anyone who calls themselves an expert in the metaverse,’ says TMW Unlimited’s Olivia Wedderburn.
We agree.
Instead, what we prefer to focus on is anticipating investing behaviour.
And which investments, made right now, have the biggest opportunity to benefit from this megatrend over the next five years.
Click here to read ‘Metaverse Mania DECONSTRUCTED: A Sceptic’s Guide to Becoming an Early Stakeholder in Web 3.0’.
Good investing,
 |
Ryan Dinse,
Editor, Money Morning
Ryan is also editor of Exponential Stock Investor, a stock tipping newsletter that looks for the biggest investment opportunities on the market. For information on how to subscribe and see what Ryan’s telling his subscribers right now, click here.
