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How Does the Metaverse Economy Work?

by Shane Peter Conroy 2 months ago in vr
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The metaverse economy can be broadly separated into two categories: making money from the metaverse, and making money in the metaverse.

How Does the Metaverse Economy Work?
Photo by Minh Pham on Unsplash

First, let’s look at making money from the metaverse. Investors are currently stepping over each other to buy stocks in the companies that are building the metaverse — for good reason. Bloomberg Intelligence says the metaverse market could be worth $800 billion by 2024.

Investors are betting that as the metaverse develops, the stock values of companies like Meta, Epic Games and Roblox — along with a long list of others — will skyrocket. Of course, there will be winners and losers here. Like the Web 2.0 tech bubble, some metaverse companies will rake it in, while others will implode.

Metaverse tokens are the other big way to make money from the metaverse. Tokens are the currencies that players use to buy and sell goods and services within the virtual worlds of the metaverse. Metaverse platforms or virtual worlds all have their own tokens. It’s a little like how countries in the physical world work on different currencies.

The Sandbox, for example, is a virtual world where players use SAND tokens to buy digital objects inside the game. Axis Infinity is a similar platform where players use AXS tokens to buy and sell collectable monsters. Decentraland uses MANA as its in-world currency.

These metaverse tokens all have real-world value — and some are now available to buy and sell on currency trading platforms. So, just like currency traders profit from buying US currency low and selling it high, some metaverse tokens can be bought and sold in exactly the same way.

There are also opportunities to make money in the metaverse. Brands are watching this space closely. Luxury fashion label Balenciaga is already selling digital ‘skins’ in Fortnite, and Roblox users can deck their avatars out in the latest Ralph Lauren digital collection.

But it’s not just the big brands that are cashing in on the metaverse. Digital artists will be able to sell NFT artworks at metaverse art galleries. And if you fancy yourself as a digital fashion designer, you can make and sell wearable NFTs on metaverse marketplaces. The Sandbox is also set to launch VoxEdit — an application players can use to build and sell all kinds of 3D objects that we’ll use inside the metaverse.

You’ll also be able to make money from gaming in the metaverse. Play-to-earn games reward players with metaverse tokens for accomplishing in-game tasks. And Roblox Studio and the Sandbox Game Maker enable users to make and monetise their own games within their respective virtual worlds.

Many digital property investors will also find their fortunes in the metaverse. Decentraland and the Sandbox allow users to buy and sell digital land and real estate — and the numbers are getting bigger by the day. Plots of digital land in the Sandbox and Decentraland have sold for as much as $4.3 million. Of course, virtual landowners need digital buildings to put on their land. A virtual architecture firm can help you with that — for around $300,000.

There’s on-going income potential for landowners too. Build a nightclub, bar or concert venue on your land and charge entry fees, or just plop a billboard on your land and sell advertising space.

As the metaverse develops, there may also be jobs available inside its virtual worlds. Perhaps you’d like to work as a virtual sales assistant at a metaverse fashion boutique, as an event manager for a metaverse nightclub, as an NFT art gallery curator, or even as a metaverse tour guide.

In any case, if the tech companies get their way, the metaverse will be much more than a game. It will be a thriving alternative reality with its own currencies, economy and workforce.

Read the full story:

What is the Metaverse?

What are the Dangers of the Metaverse?

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About the author

Shane Peter Conroy

Shane is just another human. He writes, he paints, he reads. He once got his tongue stuck to the inside of a freezer. Actually, he did it twice because he thought the first time might have been a fluke. https://themalcontent.substack.com

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