Metaverse could be valued at $13 trillion by 2030

In a surprising announcement this week, investment bank Citi says the metaverse could be worth between $8 and $13 trillion by the end of 2030. So far, it’s the most optimistic outlook of all the major banks on the metaverse.

Citi made the statement in a report released last Thursday, which also said the metaverse could have 5 billion participants. The investment bank later clarified that the 5 billion participants would also be those using mobile devices. It predicted that the metaverse would have 1 billion participants if it were limited to AR/VR equipment.

The metaverse, a shared space encompassing augmented and virtual reality, cryptocurrency and digital land, has been gaining steam since early 2021. Citi notes that the metaverse of the future will rely heavily on technological advancements, including data storage and latency.

Citi writes that “in its current state” Internet infrastructure is “unsuitable” for creating fully immersive content, as the metaverse would need. Citi adds that making the metaverse a “reality” will require a significant investment in technology.

Non-fungible tokens (NFTs), a mix of digital and fiat currencies, and legal challenges surrounding free speech will also play a role in Citi’s view of the metaverse.

Major banks have become increasingly optimistic about the Metaverse

While the concept of the metaverse has been around since 1992 in Neal Stephenson’s book snow crash, the metaverse only began to capture the public imagination in 2021. That year, Facebook changed its name to “Meta” and stated its metaverse ambitions. The focus on that aspect of Web3 was getting more and more attention and even more money started pouring into the space.

Since then, bankers have become increasingly optimistic about the prospects of the metaverse. JP Morgan recently said the metaverse could be a $1 trillion opportunity. Another organization noted that the metaverse could be worth hundreds of billions in just a few years. In addition, a Goldman Sachs employee said earlier this year that the metaverse has a potential of $8 trillion.

While the metaverse certainly has challenges, as seen in the Citi report, they haven’t stopped companies from making significant investments in the space. Companies have registered trademarks for metaverse use in recent months. Other companies have bought virtual land and others have sponsored digital events, such as Decentraland’s Metaverse Fashion Week.

While the public may be a little more convincing before the metaverse is fully adopted, companies don’t risk being left behind.

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