Investment visionary Cathie Wood, who heads Ark Invest, suggests that the metaverse has the potential to ascend to a multitrillion-dollar sphere, profoundly integrating with various sectors of the global economy as it evolves.
“This revolutionary concept is expected to weave through many industries much like technology does, in ways we’ve yet to fully conceive,” Wood shared with Sara Eisen during a CNBC Pro Talk.
Embodied in the metaverse are elements like augmented reality, virtual reality, 3D holographic avatars, and enhanced communication platforms. This parallel digital realm promises a surreal existence, allowing for gaming, working, and social interactions via avatars. Currently enjoyed mostly in gaming through platforms like Fortnite and Roblox, the metaverse also paves ways to monetize through cryptocurrencies and the trading of unique digital assets called NFTs. For instance, a piece of digital land in The Sandbox meta-universe was just acquired for a hefty $4.3 million.
Adding to the frenzy, The Sandbox meta-universe recently witnessed the astronomical sale of the Metaflower super yacht, fetching $6,50,000 (equivalent to about Rs 4.8 crore). This transaction constitutes the priciest NFT within its digital confines, facilitated by the ethereum blockchain architecture.
In a strategic rebranding move, Facebook *transitioned to Meta*, reinforcing its commitment to the burgeoning virtual landscape. Wood is confident that this market is on the fast track to amass a multitrillion-dollar valuation. “Imagine having digital replicas of ourselves, offering us endless opportunities for entertainment and increased productivity,” she added.
Cathie Wood pioneered the $60 billion ARK Invest, which has been at the forefront of backing transformative innovations since its inception in 2014.
Wood believes the metaverse will transcend its gaming roots, offering up manifold applications such as Trimble’s 3D mapping for industries like mining and utilities. “I see this as transcending mere consumer entertainment,” Wood remarked.
The ARK Invest leader, whose company’s assets are valued at $60 billion, began in 2014 with a focus on disruptive tech like autonomous vehicles and genomic breakthroughs. Notably, she is an ardent supporter of Elon Musk’s Tesla, predicting an eventual market valuation of over $3 trillion for the electric automaker.
ARK Invest’s Innovation ETF surged by over 140% in 2020, which was a banner year for tech stocks. However, Wood’s portfolio has faced headwinds in 2021, with the Ark Innovation ETF down about 20% for the year and the Ark Genomic Revolution ETF experiencing a decline of over 35%.
Despite some skepticism from other investors who note that virtual reality and immersive gaming with lifelike graphics have been a part of the tech sector for some time, the idea of a sophisticated metaverse is still considered by some to be neither groundbreaking nor novel.
Solana co-founder Raj Gokal recently expressed concerns on social media, noting the metaverse hype is unprecedented for products that haven’t fully launched. “I’m worried that the industry might be overestimating the metaverse,” he tweeted.
Regardless, the metaverse is carving out an expansive niche where companies and influencers alike are leveraging this novel ecosystem to widen their influence and modernize consumer engagement.
This digital renaissance is seamlessly blending with the flourishing cryptocurrency landscape, providing an ideal currency for transactions within this virtual universe.
