Given that Web 3.0 — the next generation of the internet — will include a plethora of new technologies ranging from artificial intelligence and machine learning to decentralized finance (DeFi) and augmented reality, the opportunities for investors appear to be plentiful.
The current internet infrastructure, known as Web 2.0, is dominated by a small number of large technology corporations. Web 3.0’s stated goal is to return power to users, not just large corporations.
The consequences for investors who become acquainted with Web 3.0 innovations now may be significant.
What Exactly Is Web 3.0?
Web 3.0 is the internet’s third generation. The term “Web 3.0” refers to a collection of technologies that enable the next-generation decentralized internet.
Non-fungible tokens (NFTs), decentralized applications such as virtual private networks (VPNs) or privacy-focused web browsers, decentralized finance (DeFi) platforms, the metaverse, and other technologies may be included. Web 3.0 also includes a wide range of cryptocurrencies powered by blockchain technology.
4 Strategies for Investing in it
Investors who are wondering how to invest in web3 have several options. NFTs, virtual items within the metaverse, and various related cryptocurrencies are examples of these. These investments are not necessarily separate categories and are frequently intertwined.
- NFTs:
Non-fungible tokens, or NFTs, are digital art forms that contain a unique blockchain identifier, making each NFT, in theory, one-of-a-kind.
In Web 3.0, NFTs could have a variety of applications. NFTs could be used for in-game items in applications such as play-to-earn games, digital artists could create and sell their artwork without the assistance of an intermediary such as an art gallery, and people could prove ownership of digital goods or verify their individual identities by possessing an NFT.
- The Metaverse
The term metaverse refers to a virtual universe powered by blockchain and web 3.0 technologies such as augmented reality, virtual reality, and cryptocurrency. The metaverse’s concept is that it enables more sophisticated digital interactions, such as socializing, shopping, creating, and so on.
Investors could, for example, buy virtual land plots in a 3D virtual world like Decentraland. If more people come to Decentraland to buy land, its value could theoretically rise, assuming Decentraland’s creators do not continue to create new plots of land.
- Cryptocurrencies
Purchasing cryptocurrencies may be one of the simplest ways to invest in Web 3.0. Many of the platforms are using their own tokens. When investing in NFTs, the metaverse, and cryptocurrency, there may be some overlap.
Owning an innovative cryptocurrency, such as Ethereum (ETH), could be viewed as an investment in all three categories. This is because ETH is a cryptocurrency, and most NFT marketplaces and metaverse applications are built on the Ethereum blockchain. Investors who hold ETH may gain exposure to multiple aspects of Web 3.0 at the same time.
- Stocks
Investing in relevant stocks could be a simpler and less risky way to invest in Web 3.0. Investors can gain exposure to the technologies that are already assisting in the development of the ecosystem in this manner.
Here are some of the most popular stocks that come to mind when thinking about how to invest in web 3.0.
- Coinbase is a cryptocurrency exchange (COIN): Taking part in Web 3.0 necessitates the purchase of cryptocurrency. Coinbase is one of the largest cryptocurrency exchanges, with 73 million users. They are also constructing an NFT marketplace.
- Facebook (TWTR): Twitter could be used to build an audience for it. Twitter’s use of NFTs in profile pictures and cryptocurrency “tipping” payments demonstrates their willingness to embrace new technologies such as those associated with web 3.0.
- Apple (APPL): Apple could become a Web 3.0 infrastructure play.
- Unity 3D software (U): Unity Software creates 3D content for personal computers, mobile devices, and augmented reality devices. The company’s platform has the potential to provide metaverse architecture, making it an appealing opportunity.
- High-Tech Micro Devices (AMD): AMD is a market leader in semiconductor chips used in central processing units (CPUs) and graphics processing units (GPUs). The firm is developing artificial intelligence (AI) and graphics chips for Web 3.0.
• Block (SQ): Block, formerly known as Square, was founded by Twitter founder Jack Dorsey. Block has integrated Bitcoin lightning payments into its CashApp payment app, demonstrating an openness to new technologies.
To read our blog on “MIftah Ismail mocked by Zulfi Bukhari after a confession on his lack of knowledge on Web 3.0,” click here