The Metaverse has been nothing short of an aspiration ever since the mere notion of it came into existence. Ever since the Metaverse was introduced in Neal Stephenson’s 1992 novel, Snow Crash, it has been inspiring developers to create a completely immersive virtual world. With every iteration of the internet, we have been coming closer to a more interconnected world that reels in the user. As Web 3 rises to the fore, we are on the precipice of a world that is connected like never before.
The Metaverse holds all the potential to be a revolution in a number of industries. As the situation stands now, aspects of the Metaverse, like Metaverse-based NFT games and Metaverse real estate, are being used by a dizzying array of sectors, from law to luxury. With this being the case, it stands to reason that the Metaverse will have a tremendous impact on the global economy. In fact, a report by Analysis Group projected that the Metaverse has the potential to add 2.8% to the global GDP by its 10th year of adoption; that would mean a whopping $3 trillion in 2031, assuming it starts now!
With all this on the line, the Metaverse is set to be a major driver of the global economy. And as it expands and spans more industries, the stakes will only be higher. So in what ways can the Metaverse impact the global economy? Read on to find out.
Table of Contents
Growing the Global Economy
As we have already established, the Metaverse promises to bring about a radical change in the global economy. And in ways that we could never have imagined! Metaverse activities can positively contribute to the world economy in several small ways. Here are a few effects the economy could experience due to the Metaverse.
1. Education and Training
Several schools have already started moving towards learning that incorporates a digital medium. Even in developing countries, smart boards are not too uncommon. Given how online learning has already been tried and tested, it might be safe to say that this could be a viable route to education. Skill building and job training, too, could be revolutionized by the Metaverse. The immersive experience could make simulations possible, thus preparing people to enter the workforce with confidence.
But how does this contribute to the economy? More efficient training would inevitably result in highly skilled workers. Imagine how an operating room simulation could help an aspiring surgeon. As the expertise of workers increases, so will wages. From there, both national and world economies can only flourish.
2. Working from Anywhere
All of us witnessed the undeniable success of the work-from-home model during the pandemic. It allowed workers to carry out their duties from the comfort of their homes, eliminating the need for a tedious commute. A number of companies have already integrated a work-from-home option, if not complete remote work, into their system. With the Metaverse in the picture, this system could be taken up a notch or two, revolutionizing workspaces.
What makes the Metaverse so appealing is that it completely does away with geographical restraints. Anyone can enter the Metaverse from anywhere in the world, as long as they have a device and a decent internet connection. Even metaverse-based NFT games hope to make use of this concept as it would provide players with an even more immersive real-time experience. With the work-from-anywhere option, skilled workers can pursue career options that might have otherwise gone unexplored due to geographical reasons. This, in turn, would generate new sources of revenue, thus making the global economy grow in leaps and bounds.
3. Expanding Digital Infrastructure
In order to build something as momentous as the Metaverse, it goes without saying that digital infrastructure is going to have to be at its greatest. This means that even the very idea of the Metaverse will give an unprecedented boost to the field of digital infrastructure. While the basic requirements to use the Metaverse may not demand much, a lot of tech goes into building it from the ground up. And with the sheer volume of data that is expected to pass through the Metaverse, data centers are an absolute must.
5G is already projected to help the Metaverse with its low latency and high speeds. However, as the demand for the Metaverse rises, we might need much more. And speaking of demand, computer parts, chips, and other hardware are going to be the need of the hour, driving their sales up.
Creating a Digital Economy
Apart from driving the global economy, the Metaverse is already establishing the beginnings of a digital economy. This digital economy will predominantly be based on crypto and will be built on the blockchain, thereby creating a decentralized ecosystem. This would mean that the use of intermediaries like banks could be minimized, making transactions only between the buyer and the seller. Like a lot of Metaverse-based NFT games right now, NFT trade is set to be a key aspect of the Metaverse. While most of these transactions may be facilitated by cryptocurrency, crypto can always be cashed out for fiat currency, making it a perfect combination of the real and virtual.
Web 3 is already revolutionizing a wide range of industries. With the advent of the Metaverse, the number of use cases has room only to grow. With the Metaverse encompassing more sectors than ever, the global economy is poised to grow from a hitherto unseen element. While the Metaverse is yet to come into existence, specks and blocks of it are already in existence, making their presence felt across the globe.
With such a ubiquitous technology in its infancy, there are enormous implications for the global economy. The decentralized aspect of the Metaverse may make asset ownership more accessible, giving everyone a stake in the economy. Furthermore, just the Metaverse experience itself has the scope to train workers in a more efficient way and allow them to increase their earnings. Yes, this would contribute in a major way to the economy, but what’s more, it might just let people do what they love without geographical restrictions.