Kerby Anderson

Recently I was on a program in which the host was videotaping my comments about these emerging technologies. We talked about bitcoin, blockchains, and NFTs. Then the conversation turned to the Metaverse. As you may know Mark Zuckerberg believes this will become Web 3.0 and has already invested more than $10 billion in its development. People and companies are already investing in this virtual world. They are 21^st century colonists exploring and even buying virtual land. They are scrambling to set up shops to sell people exclusive virtual cars, homes, and clothes. All you will need to participate in this colonization is a virtual-reality headset. If you want to buy things in this virtual world, you will need money. And I’m not talking about virtual money. I am talking about real world money that you will pay to own something in this digital world. The host of the program raised some good questions about this virtual world since he had heard that you could purchase virtual baseball cards. What is the intrinsic value of virtual baseball cards? But I might ask: What is the intrinsic value of real baseball cards? After all, they are merely carboard with a picture of the baseball player. My answer is the same I gave to my kids when they would ask me what something was worth. I would say, “Kids, it is only worth what someone else will pay you for it.” The market provides price discovery. When you are talking about collectables like baseball cards or Beanie Babies, they are only worth what someone will pay for them. It is too soon to estimate the true value of the Metaverse. But people and companies appear ready to spend real world dollars to own something in the virtual world. If so, this may be the next successful entrepreneurial venture.