Citi is the latest banking giant to give an optimistic forecast for the metaverse, which envisions the future of the internet as a collection of decentralized technology and virtual environments.
According to the New York-based global investment bank, the metaverse economy may be worth up to $13 trillion by 2030.
While some remain wary of the metaverse, the Wall Street gambler says he sees huge potential in the concept of extended reality.
According to Citi’s analysis, the metaverse is currently primarily defined as an immersive mix of online gaming platforms that rely heavily on interactive 3D play with others or offline augmented reality.
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However, this will change in the coming years. The multinational lender anticipates that the metaverse’s user base will grow to 5 billion.
The Citi Metaverse concept encompasses gaming
Citi’s understanding of the metaverse is broader than gaming and virtual reality applications. His expansive vision encompasses smart manufacturing technology, virtual advertising, online events like concerts, and digital currencies like bitcoin.
However, Citi noted that it will take time, as the metaverse’s content streaming environment is likely to require a “computational efficiency gain of more than 1,000 times current levels.”
According to the bank report:
“We believe that the Metaverse is the next generation of the Internet, merging the physical and digital worlds in a persistent and immersive way, rather than being a purely virtual reality environment.”
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The report states that the 5 billion figure is an estimate. It includes a mobile phone user base, and if the metaverse is limited to VR/AR devices, it projects an audience close to one billion.
a lot of work to do
Citi stated that achieving the bank’s vision of a “Brave New Meta World” by 2030 will require substantial technological and investment improvements.
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Citi’s 184-page report delves into many facets of the metaverse.
They contain a definition of the virtual realm, its infrastructure, crypto assets such as NFTs, money, and DeFi, as well as regulatory changes that affect the virtual world.
Other Wall Street players are optimistic
Meanwhile, Goldman Sachs estimated the value of the sector at $12.5 trillion in a December report, based on a bullish scenario in which 70% of the digital economy turns into the metaverse and then doubles in size.
Morgan Stanley, another prominent investment firm, anticipated the same figure for the metaverse in November of last year.
Bank of America, on the other hand, noted that the metaverse represents a huge opportunity for the entire crypto industry.
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