Citi is the latest banking behemoth to give an optimistic forecast for the metaverse, which envisions the internet’s future as a collection of decentralized technology and virtual environments.
According to the New York-based global investment bank, metaverse economics could have a value of up to $13 trillion in 2030.
Although some are still skeptical of the metaverse the Wall Street player believes there is tremendous potential for extended reality.
Citi Analysis shows that the current metaverse is an immersive mixture of online and offline gaming platforms, which rely on 3D interaction with other players or offline augmented realities.
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This will however change over the coming years. The multinational lender anticipates that the metaverse’s user base will grow to as many as 5 billion.
Citi Metaverse Concept Encompasses Gaming
Citi’s understanding of the metaverse is broader than gaming and virtual reality applications. This vision includes smart manufacturing technology and virtual advertising. It also covers online events like concerts and digital currencies, such as bitcoin.
However, Citi noted that it will take time, with the metaverse’s content streaming environment likely requiring a “computational efficiency gain of more than 1,000x today’s levels.”
According to the bank’s report:
“We believe the Metaverse is the next generation of the internet, fusing the physical and digital worlds in a persistent and immersive manner, rather than being a purely virtual reality environment.”
Source: TradingView.com| Source: TradingView.com
According to the report, 5 billion is only an estimation. This includes the mobile phone users. If VR/AR is excluded, it project a close to one billion.
It’s a lot to do
Citi stated that achieving the bank’s vision of a “Brave New Meta World” by 2030 will require substantial investment and technology enhancements.
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Citi’s 184-page report delves deeply into numerous facets of the metaverse.
These include a description of the virtual realm and its infrastructure as well as cryptoassets like NFTs, money, DeFi, and regulatory changes that affect the virtual world.
Other Wall Street players are bullish
Meanwhile, Goldman Sachs estimated the sector’s value at $12.5 trillion in a December report, based on a bullish scenario in which 70% of the digital economy pivots to the metaverse and then doubles in size.
Morgan Stanley, another prominent investor firm, also predicted the same for the metaverse back in November last year.
Bank of America, however pointed out the huge potential for crypto-industry in the metaverse.
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