Citi Sees Metaverse Economy as Large as $13T by 2030
The total addressable market (TAM) for the metaverse economy could be between $8 trillion and $13 trillion by 2030, with up to five billion users, but getting to that market level is going to require sizable infrastructure investment, Citi said in a report on Thursday.
The metaverse is an immersive digital world created by the combination of virtual reality, augmented reality and the internet.
The content streaming environment of the metaverse will likely need a “computational efficiency improvement over 1,000 times today’s levels,’’ the bank said, and investment will be required in areas such as storage, network infrastructure, consumer hardware and game development platforms.
The metaverse concept isn’t new, the bank’s analysts noted. However, interest in the metaverse really began to snowball at the end of 2021 because of the rise in sales of non-fungible-tokens (NFTs) and big technology companies announcing their interest in the sector.
NFTs are digital assets on a blockchain that represent ownership of virtual or physical items, and can be sold or traded.
These are the same institutions last cycle that had zero faith in blockchain technology.
How much real utility will be in the metaverse, versus artificial scarcity?
How do you define utility versus artificial scarcity? Utility is overrated anyway these days (at least in rich western countries). Good clean drinking water, shelter, and food have utility, and most of that is trivially obtained in these countries anyway. 99% of what we actually spend money on is really an attempt to fill higher needs (esteem needs/belonging/status) anyway. Why buy that supreme T-shirt?
I think initially majority will be garbage, but I definitely don’t see the metaverse failing!
Definitely not. Look how engrossed people are with their phones and gaming on a screen, add a fully immersive experience and i think i think the biggest problem will be getting some people out of it ready player one style!!!
I don’t think metaverse will be about to “replace” real world someday even for future generation, but it will definitely be a very meaningful place for leisure activities, as online video games are now. And idea to define and create global a “cyber-place” which unifies these activities, and control and regulate it is a pretty good idea.
Speaking about real utility of metaverse - just imagine how marketing will change. Instead of ordering an expensive billboard for your company, mount it on some building IRL, and expect people to see it during walking down the street, you can just place the same billboard on any buildings in GTA VI, for example, and all you will need is a png image
All based on crowd psychology. People wants to live better life. Metaverses is a place where you can have smth you will never have in real life. The day when NFT will get real connect with offchain documents will change everything I think.
Different people different preferences. I think a lot of the younger generation are growing up digital native. It’s not that the “metaverse” is replacing the real world – it’s that metaverse and the meatspace imo are going to be merged seamlessly in the future. So, you won’t see “the matrix”. But you will see esports and streaming continue to grow.