Is the Metaverse Just One Big Scam?

Metaverse spending is predicted to total $5 trillion in 2030, according to a new report from McKinsey. The report, which surveyed 2,000 people across the US, UK, Germany, and China, found that 79% of respondents said they had already made a purchase in the metaverse. Of those who had not yet made a purchase, 60% said they were interested in doing so.

So what exactly is the metaverse? According to McKinsey, it’s “a persistent, digital universe of infinite scale and detail where people can meet, interact, and do business.” In other words, it’s basically like the internet, but with even more stuff to buy. However, with the crash of Bitcoin and the seeming death of NFTs as proclaimed by the media, some are claiming this is nothing but a scam and will soon die out.

It’s hard to deny that NFTs had a moment. Everywhere you look, people are talking about them and trying to cash in on the craze. However, not everyone is convinced that NFTs are here to stay. Fred Ehrsam, the co-founder of Coinbase, believes that 90% of NFTs will have no value in 3-5 years. He reasons that NFTs are driven up in value because of hype and the “community” that surrounds it. There is no inherent value in the art itself. 

Also, as much as we all would love to live in the metaverse, Elon Musk doesn’t think it will happen anytime soon. He’s even made fun of the idea, saying that people wouldn’t want to spend too much time in a virtual world where they have to put screens on their faces. It’s hard to argue with him, especially when you consider how uncomfortable it is to wear a VR headset for extended periods. 

 Metaverse real estate is a very niche market, and it’s important to keep this in mind before investing any resources. The market is far from dead, with NonFungible.com reporting 128,902 sales of metaverse properties (including avatars) in the 365 days prior to Dec. 21, 2021.  However, this pales in comparison to the secondary market for physical real estate, which saw over 5 million sales in the same time period. 

However, I believe that the metaverse will eventually become a reality, and people will be able to spend as much time in it as they want. After all, it’s only a matter of time before we develop technology that can allow us to experience the virtual world without having to strap a bulky headset to our heads. 

Also, some are concerned that the metaverse will collapse. No one wants to think about their investment failing. Still, there’s always a risk with investing in anything, and we might as well talk about the elephant in the room: The risk with metaverse real estate is considerable and worse, if a metaverse platform folds, your investment just disappears. 

Unlike real-world real estate, where you can always fall back on the fact that you still have this piece of land or this building if a metaverse platform goes under, your investment is gone for good. It’s like investing in a virtual world that could just suddenly cease to exist. In fact, it’s more likely than not that most metaverse platforms will go under and most investments will fail.

When it comes to the question of whether the Metaverse is a scam, there is no easy answer. There are a lot of conflicting opinions out there, and it can be difficult to separate fact from fiction. However, I believe that the Metaverse is not a scam.

Here’s why: The Metaverse is a term used to describe the growing trend of people interacting with each other and the world around them through virtual reality. While the concept of the Metaverse is still in its early stages, it is constantly evolving as more and more companies begin to invest in this technology. 

We are already seeing a major shift in how we interact with the world around us, and this is only likely to continue as technology develops further. The Metaverse has the potential to change the way we work, shop, socialize, and even travel. It will provide new opportunities for businesses and allow people to connect in previously impossible ways.  As the Metaverse continues to grow, we will see an increasingly connected world where physical borders are no longer a barrier to communication and collaboration.

But here’s the thing: the metaverse is already here…and it’s called Fortnite. Unlike any other game I’ve played, it makes people come back over and over again. I haven’t played in a while, but because of my son there was at least four years where we played almost every day.

Built by Epic Games, Fortnite is a survival game where 100 players drop onto an island and fight to be the last player standing as a storm closes in around them, forcing everyone to move closer and closer together until only one is left standing.  The catch is that every match is different, thanks to the ever-changing map and constantly updated list of weapons and items.

And while some may say that Fortnite isn’t a “metaverse” because it’s not fully simulated like Second Life or Habbo Hotel, I would argue that it’s even better because it’s more focused on gameplay and fun. I would go so far as to say that Fortnite is the perfect metaverse for our current era: it’s social, it’s ever-changing, and it’s just plain fun.

Although the Metaverse is still in its early stages of development, I believe that it has the potential to change the world as we know it. It will provide platforms for people to connect in previously impossible ways.  We will be able to visit virtual worlds, shop in virtual stores, and even attend virtual concerts. This technology has the potential to bring people together and improve communication across cultures.

I would love to hear your thoughts on the Metaverse.  What do you think are its benefits? How do you see it changing our lives? Leave your comments below!