Goldman Sachs has estimated that the metaverse could be worth $8 trillion. Several others have also predicted a multitrillion-dollar market for the metaverse.
In a recent “Exchanges at Goldman Sachs” episode entitled “Understanding the metaverse and web 3.0,” Eric Sheridan explained the bank’s metaverse prediction.
Metaverse: On blockchain networks, metaverse projects are powered by fungible tokens or tokens that are divisible and can be traded among themselves. These tokens can be used to buy digital assets, such as virtual land and avatar outfits, and they can also be exchanged for other crypto or fiat currencies.
Metaverses essentially fuse virtual, augmented and physical reality, blurring the lines between online and real-life interactions. It’s actually a few different platforms, such as Sandbox, Mirandus, and Decentraland, through which people can interact in different ways.
On being asked about the evolution of the metaverse in the future and how big the potential gains could be, the analyst said, “We believe this could represent an $8 trillion revenue and monetization opportunity.”
Today, the digital economy represents about 20%, 25% of the global economy. “We see the digital economy continuing to grow, and on top of that we see a virtual economy that will grow both within and alongside the digital economy,” the analyst said.
“The range of possible outcomes we came up with is anywhere from $2 trillion to $12 trillion, with $8 trillion as of the midpoint of all possibilities,” he explained.
Metaverse has been estimated to be worth more than $8 trillion by several analysts. Morgan Stanley, another rival investment bank, predicted the same in November last year.
“I definitely believe this is a massive, massive opportunity,” he said. Bank of America’s strategist, Haim Israel, said the metaverse is a massive opportunity where cryptocurrencies will become widely accepted as currencies.
In the meantime, Ark Investment Management CEO Cathie Wood says the metaverse will be a multitrillion-dollar market, and crypto-asset manager Grayscale Investments says the metaverse is a $1 trillion opportunity.
