Too embarrassed to ask: what is the metaverse?
The term “metaverse” sounds like something out of a science fiction novel (and it is). But what does it actually mean?
The term “metaverse” sounds like something out of a science fiction novel. There’s a good reason for that – it is.
The term was coined in Neal Stephenson’s 1992 novel Snow Crash.
Like the similar term “cyberspace”, it describes a three-dimensional, immersive version of the internet in which human beings do business, play games, and socialise, represented by digital avatars.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
And just as the term cyberspace did, the metaverse has made the leap from comics and sci-fi films to the boardroom and the business sections.
In July, Facebook founder Mark Zuckerberg said that within the next five years, he expects it to be described not as a social network, but as a metaverse company.
Meanwhile video game platform Roblox, whose users can sell their creations to each other for Robux – exchangeable for real world currency – became a multibillion-dollar company when it listed in the US this year.
This is not a new vision by any means. Virtual worlds such as Second Life, where individuals can establish businesses and buy digital property for real money, have been around for a few decades. But usage has largely been limited to enthusiasts.
The key difference today – according to proponents of the metaverse – is that not only has technology advanced considerably, but the pandemic has driven new demand for remote interaction.
For example, Facebook has unveiled technology enabling workers to meet and interact in a virtual office by donning virtual reality headsets.
Some dismiss this as little more than a 3D Zoom call – others argue that it offers a more natural way to interact in the working-from-home era.
Either way, it represents a big opportunity for a company like Facebook to collect even more data on its users.
But there are plenty of competing visions for the metaverse.
Many entrepreneurs in the crypto world favour the idea of an open, decentralised metaverse built on the blockchain, as opposed to one dominated by a single company.
As with its previous incarnations, the metaverse may turn out to be more hype than reality.
But with technology advancing all the time, it’s likely that at least some aspects of it will become everyday parts of our lives.
See you in the matrix!
To learn more about emerging technology and investment, subscribe to MoneyWeek magazine.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
73% of savers plan to rely on partner’s pension in retirement
A new survey suggests the majority of people may lack financial independence in retirement, with almost three-quarters set to rely on their partner’s pension
-
How much you need to follow the 25x retirement rule – will you have enough to be financially independent?
We explain what the 25x retirement rule is and the amount you would need to be financially independent in retirement.
-
What's behind the big shift in Japanese government bonds?
Rising long-term Japanese government bond yields point to growing nervousness about the future – and not just inflation
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolio
As the UK recession is confirmed, we look at ways to protect your wealth.