Metaverse: the next chapter for the internet?

The metaverse matters, that much is clear. Big name companies such as Facebook (now Meta), Microsoft and Nike are already staking a claim on this potential enormous prize. But despite this, there is no agreed definition of what the metaverse is. It is still just an idea and there is no exact timeline to adoption.

So why are investors so excited by the metaverse and what might the opportunities be? Ben Rogoff, lead manager of the Polar Capital Technology Trust, explores what we do know about the potential ‘successor to the mobile internet’ and asks: is this a new digital frontier?

Web 2.0Web 3.0Web 2.0 Market Cap5$14.8tnas at November 2021Source:1. 2. 3. 4. 5. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.Source: Polar Capital. It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities mentioned in this document. A list of all recommendations made within the immediately preceding 12 months is available upon request. Source: ’Seven technology layers of the metaverse’ It should not be assumed that recommendations made in the future will be profitable or will equal the performance of securities in this document. A list of all recommendations made within the immediately preceding 12 months is available upon request. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.Metaverse: the internets evolving next chapter “The convergence of physical, augmented and virtual reality in a shared online space.” Hundredsof individual metaversesalready exist What isthe future of Metaverse?1992Snow CrashNeal Stephenson coins the term “metaverse” in his influential book 2003Second LifeThe first game allowing players to have a second life in a virtual world 2009BitcoinBlockchain launches, initiating the move to dematerialisation 2012Coloured Coins; Ethereum Blockchain2016Pokemon Go popularisesaugmented reality gaming 2020+Pandemic accelerates the adoption of virtual spaces 2021Facebook becomes Meta2015Decentralandand the rise of virtual real estate Presenting a multi-trillion dollar prizeAnew digitalopportunity with thepotential to change everything?Offering investment opportunities acrossthe spectrumSpatialComputingExperiencesCreatorEconomyDecentralInfraDiscovery3DInterfacesGaming, Social, eSports, Theatre, Shopping, ConcertsDesign Tools, Asset Markets, Workflow, CommerceEdge Computing, AI Agents, Microservices, BlockchainComputer, Graphics, Storage, Connectivity, NetworkingAd networks, Social curation,Ratings, Stores,Agents3D Engines, VR/AR/XR,Multitasking, UI,Geospatial MappingMobile, Smart Glasses,Wearables, Haptics,Gestures, Voice$0.9tnFacebook/Meta$1.98tnGaming/eSports$23bnNFTs tradedvalue in 20211$36bnValue of virtual goods, skins and lives2Total valueof AR/VR in20253$170bnApp Store Spend In 20214$54bnAs companiesstakeoutclaimsto the successorof mobile internet, the potential is exponential2012VR sets start to go mainstream As the metaverse evolvesitcould disrupt every industrywithfarreaching implicationsfor investorsCompaniesrepresenting theWeb 2.0's $14.8 trillionmarketcap setto compete in the metaverse

Metaverse: a “successor state for the mobile internet?”

The term ‘metaverse’ exploded into popular consciousness last November, when Mark Zuckerberg rebranded Facebook as Meta; thereby making a very public declaration that he was pinning the company’s future on this concept, which is still widely debated in terms of its definition and use.

Watch Ben Rogoff explain why he believes the metaverse could best be defined as “the successor state for the mobile internet” and, while it remains early days, why the team see it potentially as one of the most exciting emerging technology trends today.

Ben also explores how a framework for the metaverse is already beginning to emerge, highlighting the realities of the scale of infrastructure needed to support it.

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