According to Ethereum co-founder Vitalik Buterin, corporate attempts to construct the metaverse will fail. Even though the Metaverse concept is still in its infancy, Vitalik thinks that giants like Facebook would have difficulty establishing their foundations. In Vitalik’s judgment, many of these businesses attempting to build the metaverse will fail.
The crypto community was enthusiastic when Mark Zuckerberg first revealed “Meta.” Since then, the firm has given various indications that it is prepared to invest a lot more in this area, including its plans to support NFTs on Instagram and Facebook. After the announcement, Zuckerberg revealed that Reality Labs’ Metaverse unit would invest $10 billion in the sector.
The metaverse is generally understood as a network of three-dimensional virtual worlds. Individuals may communicate, do business, and create social connections in these environments using avatars or virtual representations of themselves. Now, Facebook’s parent firm Meta is in command of corporate interest in developing the metaverse following its rebranding of the entire company around the idea. However, Vitalik isn’t confident that the company will be successful. He stated, “Anything Facebook creates now will misfire.”
The “metaverse” is going to happen, but I don’t think any of the existing corporate attempts to intentionally create the metaverse are going anywhere. My critique is deeper than "Metaverse Wikipedia will beat Metaverse Encyclopedia Britannica". It's that we don't really know the definition of "the metaverse" yet, it's far too early to know what people actually want. So anything Facebook creates now will misfire.
Vitalik Buterin, a well-known figure in the crypto community, has also become one of the most vocal and has repeatedly offered views on various concerns ranging from Plan B’s S2F structure to the rise of NFTs. This is one of the few occasions on which Vitalik would talk about the metaverse. His views have resonated with many in the crypto space. According to new research by McKinsey & Company, the metaverse’s value could total $5 trillion by 2030. This shows how the metaverse influences various sectors, and businesses will develop over time.
According to a McKinsey study, E-commerce is the main engine driving the metaverse ($2.6 trillion in economic power). This compares to things like virtual learning ($270 billion), marketing ($206 billion), and gaming ($125 billion) (nearly $1.4 trillion). According to Mark, creating platforms in the digital world will “unlock hundreds of billions, if not trillions of dollars over time.”
On Thursday, Meta announced that Reality Labs, which focuses on the metaverse, had posted quarterly losses of $2.81 billion. As a result, the year-to-date deficit is $5.78 billion. Perhaps what Vitalik implies about Facebook’s attempt to build a Metaverse – and “misfire” – bears some truth. While that may seem to support Vitalik’s argument, Mark Zuckerberg isn’t concerned and keeps his eye on the bigger picture. He claims that the metaverse is the future of digital finance.
Major corporations have also adopted the metaverse approach as part of their growth strategy. Facebook has significantly increased its metaverse efforts to maintain a leadership position in the area. It’s impossible to know where the metaverse will go with the significant interests of major players. Buterin and Zuckerburg are finance beasts that do what they set their minds to. It’ll be fascinating to see how all this plays out.