The equity markets are full of high-growth opportunities. For instance, stock investors have the opportunity to put their money to work in multiple trends that offer sustainable double-digit growth, such as cloud computing, cybersecurity, or even cannabis.
The same can be said of the cryptocurrency space. The financial and nonfinancial applications of blockchain technology could revolutionize certain industries over time.
But of all the eye-popping growth opportunities, none comes with a more jaw-dropping dollar figure than the metaverse.
The metaverse is a potential $30 trillion dangling carrot
The metaverse is viewed as the next iteration of the internet. It’s a 3D virtual world that will allow connected users to interact with their surroundings and one another. But it’s also a vast unknown. It’s not clear how many metaverses there will be, how they will connect to one another, and where exactly the metaverse will begin or end.
What is known is that it’s going to take a lot of moving parts to make the metaverse work. In addition to the physical devices needed to connect users to these virtual platforms, there will need to be adequate processing power, reduced latency, a lot of storage capacity, payments potential, and identity verification, just to name a few essential pieces of the puzzle.
According to Matthew Ball, CEO of venture capital company Epyllion, the metaverse could become a $10 trillion to $30 trillion market over the next 10 to 15 years. If Ball’s prognostication is accurate, these are staggering figures that justify the hype surrounding metaverse stocks and related cryptocurrencies.
Yet if there’s one given with every next-big-thing investment, it’s that not every company or player will be a winner. Although the following two companies have been popular ways for investors to play the metaverse craze in recent months, this pair of investments should be avoided like the plague.
If there’s a leading metaverse investment I’d strongly encourage investors to stay away from, it’s meme-based cryptocurrency Shiba Inu ( SHIB 11.73% ).
Shiba Inu was the hottest thing since sliced bread in 2021. On an intra-year basis, SHIB tokens gained as much as 121,000,000% (not a typo!) before retracing to end the year higher by around 46,000,000%. It made millionaires out of folks who invested just a few dollars and hung on to their tokens throughout the year.
Shiba Inu’s historic gain came on the back of increased visibility and crypto market dynamics. In terms of the former, SHIB was listed for trade by numerous crypto exchanges last year and benefited …….