23 September 2023
A new kind of investor is emerging as a result of the digital industry. Due to developments such as blockchain, Cryptocurrencies, DeFi, as well as NFTs, the trading environment in which modern investors work has changed dramatically. It's the first time anything like this has happened in the world of money, and it's just the commencement. With the border between online memes as well as financial products becoming more blurry, investors are becoming increasingly at ease dealing in internet culture. Gen Z's unwavering support has propelled "meme" stocks like Gamestop and "meme" Cryptocurrencies like Dogecoin (DOGE) to unprecedented heights over the last year.
The future of Extended Reality and a fully immersive 'metaverse' is hotly debated amongst experts. They anticipate that the practical applications of augmented reality and mixed reality will increase. It is feared that if people who created the present internet giants are in charge of Web3's growth, the existing issues would only become worse.
With the advent of the metaverse, online communities will soon take on a more palpable presence in people's everyday lives. Apps such as games with their own economies and non-fungible assets that provide income, including wearables or avatars, are only the beginning of what the metaverse will bring about when blockchain technologies are combined. The metaverse would create a fresh economy wherein purchasing as well as selling online content is commonplace for those who grew up in the online age.
The Financial Power of Memes
Despite their playing by different rules than their parents and grandparents, members of Generation Z are showing a keen interest in improving their economic literacy. Moreover, it’s frequently utterly irrelevant to industry sectors such as Cryptocurrencies. Current findings from Tallo shows that 38% of millennials are using TikTok as a source for financial guidance, with many planning to use it for both long as well as short savings guidance.
In the last year, groups on social networking sites have grown into significant resources for educating this population about personal finance. It's because of this that meme stocks such as GameStop and AMC, and meme currencies like Dogecoin and Shiba Inu (SHIB), exploded the year before. Young investors' interest in meme stocks is stable, according to a recent survey, and they are more focused on the virtual world.
The Growth of Metaverse
The metaverse is emerging as a significant new engine for the expansion of digital investments, serving as a bridge between the real as well as the virtual worlds. In that it lays the groundwork for emerging virtual ecosystems, the roots of which can already be seen in NFTs as well as their implementation in the artwork, property, as well as collectibles industries. Consider the BAYC as an extreme case. The rare "ape" NFTs in a Crypto art collection have become a phenomenon in and of themselves, with the least expensive piece going for about $200,000. Being a member of a group and a collectible, they may be used as a wager on whether or not the franchise will continue to provide value in the future. For instance, in December we saw the BAYC team up with Adidas to make blockchain gameplay apparel.
These gamified virtual markets are more than simply another kind of entertainment. Clients as well as Cryptocurrency traders place value on the tokens used in games for in-game purchases and trading, and so most games have their own native tokens. Token-powered communities come to life in play-to-earn (P2E) games like Axie Infinity and DeFi Kingdoms, which link economics, labor, and social engagement. Further, as was pioneered by the P2E guild Yield Guild Games, some players are renting out their NFTs in exchange for a percentage of the homeowner's bitcoin earnings whilst gaming. In the virtual world of the metaverse, an alternative financial system is taking shape. It's decentralized, open source, and built on blockchain technology, so it stands to gain traction among those eager to explore new horizons in the online world.
Digital Economies and Future
Youth individuals are investing in online culture and exploiting electronic financial tools more than ever before. Since the advent of the metaverse and metaverse-based applications, this pattern is expected to expand at an accelerating rate over the next several years. Digital worlds where limited 'land' may be bought, sold, and built onto markets that balance the supply and demand of digital goods; the possibilities in this new frontier are really endless. Cryptocurrencies, including those used in collectibles and video games, need to have practical applications if they are to gain widespread acceptance over the lengthy period. For the meme instruments to serve its purpose, community leaders must initiate initiatives, construct features, and design alternate realities in which it is embedded. Because the metaverse is still in its infancy, the number of verticals and the precise nature of each may alter over time. There's really, therefore, no question that a new digital generation will usher in a new era of industries as well as investment prospects.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.