DBS Bank strategist: Watch out for gaming and Big Tech in Metaverse

By November 24, 2021DeFi
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  • Meta Platforms (formerly Facebook) appears to have injected interest in the concept
  • He notes that almost every facet of life today is going digital
  • Gaming and big technology firms like Google, Apple, and Microsoft could see major gains tied to the Metaverse

We have seen several cryptocurrencies linked to the increasingly interesting Metaverse space make huge gains in recent weeks. Projects such as The Sandbox (SAND), Decentraland (MANA), and Enjin Coin (ENJ) have witnessed an upside driven by investor interest in the concept of a Metaverse.

Crypto and blockchain projects could be among those to benefit massively from the idea, but according to DBS senior investment strategist Daryl Ho, investors could do well to look at two key sectors likely to play a big role as the initiative takes shape.

In an interview with CNBC’s “Squawk Box,” Ho said that companies and platforms that are already deep in the digitisation space could have the front seat when it comes to defining the Metaverse and thus benefitting the most.

If you don’t already realize it, we are already moving somewhat towards a digital world, so the Metaverse is simply the next step, the next frontier,” Ho explained.

Meta leads other Big Tech companies in plans for a Metaverse

Recently, Meta Platforms (formerly Facebook), took a giant step in announcing plans for developing the Metaverse, and major companies around the world are looking to follow suit as the reality of a virtual world grows.

It’s with this perspective that the investment strategist says two particular sectors could take the lead and be highly profitable to investors.

He believes the computer gaming industry has the upper hand here, given the sector is already immersed in the virtual world. Notably, it's in the Metaverse would see people live, work and collaborate and gaming platforms have represented this in many ways in their gaming projects.

I think these are the companies [investors] should look out for,” he said, adding that the sector is likely to be the one that “shape[s] the metaverse as we know it.”

Ho also believes that big technology companies have all it takes to maintain a leading role in the Metaverse and will be big beneficiaries.

Apart from Meta, other Big Tech companies to watch out for are Google, Apple, Microsoft and game company Valve.

  • Stripe co-founder John Collison says it’s possible the payments firm could add cryptocurrency as a payment option
  • It’s been three years since the company halted bitcoin payments
  • Collison points out developments in the digital space like Layer 2 protocols as a key to solving one of the main bottlenecks of crypto payments

Stripe, an online payments giant that has seen massive growth in the past few years, stopped accepting crypto payments in 2018 when it ended support for the world’s largest crypto by market cap Bitcoin.

The firm has since not revealed any plans to accept cryptocurrency payments.

However, there’s no ruling out that a u-turn on crypto won’t happen, according to co-founder John Collison.

Not yet, but it can happen

On Tuesday, Collison told CNBC at the Fintech Abu Dhabi event in the UAE that the company may not be ready to support digital asset payments. However, that did not mean that it could look at accepting them in the future.

He opined that it wouldn’t be “implausible” for the San Francisco, US, and Dublin, Ireland-based financial services provider to embrace crypto.

He also said that they (at Stripe) don’t look at crypto in terms of its use as a speculative investment instrument, adding that the idea is “not that relevant to what [they] do at Stripe.”

Improved scaling and reduced transaction costs

When it ended its support for BTC payments, Stripe pointed out the issues of wild volatility and the inefficiency that characterised the coin’s use as a currency. Crypto prices fluctuate sharply throughout the day, with declines or upsides triggered by a myriad of factors.

While the burgeoning industry still faces a few teething problems, especially on the regulatory front, Collison says on-chain developments across several platforms continue to make it better. And chief among these “solutions” have been improvements made towards network scalability and reduction of transaction costs, he added.

According to the Stripe exec, innovations such as Lightning Network and the emergence of highly scalable networks such as Solana (SOL), are just part of what could make use of crypto for payments grow across industries. The benefits of these developments, he explained, are faster, cheaper transactions.

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