These days, there is hardly any tech media that doesn’t have “the metaverse” included in their headline. So much is being said about this new development of virtual reality and it is a major concern for everyone, especially investors and governments around the world.
Some people have speculated that the metaverse will not match the attention it is getting, but they are wrong because from the way things are going, it even deserves more attention since everything about this evolution of reality is going to change the social world of business as we know it.
As an investor, some major factors to consider before making any move are the ESG (environmental, social, and governance) factors. They are very useful in the analysis of risk and growth, which are things you need to be sure about before investing in anything – including the metaverse.
Many investors, including famous tech giants have taken the bold step of investing in the metaverse at this early stage. But let us look at the future of investing with respect to the metaverse and ESG investment.
ESG and the metaverse
Virtual reality opens a great degree of opportunity for business owners and their customers, so it is only wise to invest in the metaverse as early as possible since the market will embrace sustainability.
E – Environmental
The metaverse has potential to do a lot of good for the environment as more people subscribe to it around the world. An obvious way that the metaverse proves to be a friend of the environment is the way it can help to reduce world pollution.
After the covid-19 lockdown forced many of us to work from home, we came out to see cleaner rivers, an improved quality of air, healthier wildlife and overall reduction in noise pollution. If we could gain all that from a few weeks of restricted movement, imagine what could happen when the metaverse helps us reduce travelling and keep us having fun while at it.
The enhanced virtual reality of the metaverse is projected to reduce the number of people that travel for business or pleasure purposes around the world, which will lower world pollution and noise.
Some people have expressed worries about the future of metaverse with respect to tourism. To believe it will reduce and even end tourism because people can go anywhere from their homes, but this is not true. The metaverse could open new doors to tourism because the more people see and experience a place in the virtual world, the more they will like to go there.
It is true that the metaverse will eventually require the use of large amounts of energy and analysts have expressed their concerns about greenhouse gas emissions. Thankfully, there are ways that this issue can be fixed, some of which include streaming in standard definition (SD) instead of high definition (HD), properly recycling e-waste and buying second hand electronic devices.
S – Social
This is no doubt the most friendly part of ESG with respect to the metaverse. Take a look at social media, it is a huge success today because of how easily people can use it to communicate with each other without any geographical constraints.
Now imagine the metaverse, which is an enhanced form of social media coupled with augmented reality…the success will be even more massive and more people will get involved, even if it’s only for the thrill.
With the metaverse, your relationship with people will get stronger and more realistic. Apart from people you already know, you will be able to meet strangers from events and get acquainted with them. Who knows? You could get a new friend or business partner from the metaverse, you could even get invited to visit their homes or go for a date right there in the metaverse.
G – Government
Governments all over the world are developing interest in the metaverse because of how much it can affect economies and change the world. Since the environmental and social aspects have been proven to be in sync with the metaverse, the governmental aspect is probably the only factor that could get you, as an investor, to be doubtful about the decision to invest or not, but you actually have nothing to worry about.
Governments all over the world can use the metaverse the way they have used social media platforms to get closer to the masses. South Korea and China for example, have already started investing in the metaverse and other countries will follow suit. There will also be more jobs and government roles for people in the metaverse, especially in the area of security.
There you have it, the impact the metaverse will have on ESG investment is a good one and as a wise investor, you have nothing to fear because the investment opportunities in the metaverse embraces these factors.
Top three ESG investment opportunities in the metaverse
At this early stage of the metaverse, the top three investments that investors are embracing are:
Investors are literally making this a competition. They are all trying to buy as much virtual land as possible in the metaverse because of how much it is and will be worth in the coming years.
There is still time for you to buy enough land that can put you in a great financial position in the next few years.
We are referring to cryptocurrencies and non fungible tokens here. In the metaverse, blockchain technology is used to verify ownership of assets and many investors are using this medium to break into the virtual world.
Exchange traded funds (ETF)
The ETF focuses on computer hardware, gaming, and infrastructure as a service (IAAS) companies. It is actually the easiest of the top three ways people invest in the metaverse.
Those who have invested in an ETF made this choice because it is diversified and therefore, is able to reduce volatility so there is less risk.