Facebook's announcement to rebrand as Meta left many users confused as to what this actually meant. The name of the social media platform Facebook will not be changing, but founder Mark Zuckerberg's new philosophy on Facebook's role in the metaverse is quickly evolving. Here is an overview of what Facebook's rebranding means for the company and why investing in the metaverse can be a worthwhile strategy!
Although Facebook's rebranding to Meta only affects the parent company as a whole, rather than the name of Facebook itself or any of the company's other social media platforms and apps, the move does change the overall direction of the company to encompass more of what may eventually be possible for future technology.
Facebook, Instagram, and other apps that are owned by the company now known as Meta have increasingly added various options that involve virtual reality and augmented reality in recent years, rather than sticking to the basic text, images, and video of earlier versions of the social media platforms. The more complex metaverse reflects Zuckerberg's intent to continue pushing the company to become something more vital in the lives of users than basic social media. No longer happy with the basic status updates, online chatting, and photo sharing that once defined Facebook, Zuckerberg and Meta are pushing the limits of what may be possible for the digital universe and its place in the real world.
Cryptocurrency has been gaining traction as a potential legitimate form of currency among tech enthusiasts over the past several years, but it has not quite caught on for the general population. Yahoo's Yaёl Bizouati-Kennedy recently explained that Facebook's shift to the metaverse may result in a positive change when it comes to typical views of cryptocurrency by serving as a gateway to Meta users that are not yet comfortable or knowledgeable of the subject matter.
According to CNBC, the value of Mana, a cryptocurrency closely connected to the idea of the metaverse, increased by over 400 percent in the days following Facebook's official rebranding as Meta. While Mana currently exists within the virtual reality world of Decentraland, the rapid boost of awareness that Meta has brought to the idea of cryptocurrency could have a significant impact on the overall acceptance of the concept of using some form of cryptocurrency to purchase items in the real world.
Decentraland explained that Facebook's emphasis on online interactions, games, and use of digital currency within those games and other aspects of the platform may be helping more users warm up to the idea of using cryptocurrency as a mainstream alternative to credit or debit cards for digital purchases in the future.
With Facebook’s rebranding to Meta, Microsoft announced they too would apply special focus to the metaverse space. So, while Meta relays a vision of the metaverse allowing enhanced engagement across education, work and various social contexts, Microsoft relays an immediate focus on the virtual office component. Imagine a world of AR glasses and VR headsets, as being the norm. The metaverse was not started by Meta or Microsoft; however, these are two of the most prominent companies of our generation to quickly pivot, in an effort to enhance their position of leadership and ownership of the internet’s next phase.
At Brown Investors, we prioritize connecting our clients with the most promising companies to create long-term investment opportunities. Contact us today to learn more about Brown Investors company insights and our exclusive Cryptocurrency Course.
Did you miss our latest Instagram Live about the current market and cryptocurrency? Be sure to listen to that here!