(upbeat music) - Hello from the Metaverse.
Well, only if you believe that giving yourself
virtual backgrounds for video conferencing calls
places you in the Metaverse.
Which, spoiler alert, it doesn't.
But you can get ready for some deep background
on the actual Metaverse
and what newcomers to investing need to know about it,
as it becomes a virtual place
with real, real opportunity.
Welcome to "Bright Ideas," the Metaverse edition.
And listen, I'll try not to be too crypto.
I mean, cryptic. (bell rings)
Which yes, dad jokes still exist in the Metaverse.
I'm especially excited about this episode
because I love dropping the term Web 3
into any and every convo that I can.
(bell rings)
Seriously though, the Metaverse is a need to know space
because it holds the potential to transform
the way we live and work,
and even form social connections, which is so exciting.
And it also presents investing potential.
Here to explain all of this
are two very bright minds who are much,
much further along in their Metaverse education
than I am.
First up, we'll hear from Lubna Lundy,
who explores new ideas and opportunities
like the Metaverse for Fidelity.
Lubna, you are joining us virtually
but I feel like that's a term that has
a different connotation in the context of this conversation.
- Hi Rod.
Yes, I am joining you from New Jersey, the Garden State.
I'm glad to be here.
- Okay, so not the Metaverse?
- Well, I guess it depends on how you define it.
- Okay, so you anticipated my first question then.
How do you define the Metaverse?
- It's not about just creating an avatar
or putting on a VR head set.
It's a little bit more than that.
Probably the simplest way to describe it
is the continual convergence between the physical
and digital worlds.
So think a phygital space, so to speak.
Every day, I put on my smart watch,
I'm tracking my steps, my calories digitally.
At some point, I'm making a request
to some sort of virtual assistant,
whether it's through my smart phone
or some other device in my house.
Well now, there's an even more immersive feature actually,
where the convergence between the physical
and digital world is even greater.
So think now you're going somewhere
and you wanna try something on,
and you can try on outfits or clothes through glasses
or a mirror.
Or you can attend a concert virtually,
which millions of people are already starting to do.
Creating this even more phygital world
is what we're talking about.
- Okay, so I have so many questions.
But I'm actually gonna ask you to back track here.
Did you just use the word "Phygital?"
Like, meaning physical meeting digital?
- I did.
But I can't take credit for it.
Within Fidelity, we have a group, they're called FCAT,
or Fidelity Center for Applied Technology,
and they're sort of an internal think tank.
And they've been studying the Metaverse since 2014,
so this is nothing new to them.
- Wow, so 2014, back when a lot of us
were still trying to master Web 2 at the time,
or figuring out how to take a flattering selfie,
let alone understand this new,
I guess what's called Web 3?
- At Fidelity, we are constantly looking for new themes.
We're monitoring existing themes.
And also determining which companies
and related technologies are helping to drive
various themes forward.
We're able to do that by tapping into our research experts.
All of the researchers at FCAT
to really understand a particular theme,
especially if they believe there's potential for investors.
- Wow, so today, you are a one woman Metaverse think tank.
How does Fidelity go about turning a concept
like the Metaverse into an investing opportunity?
- We're looking for companies
and related technology solutions
that are helping to drive themes forward.
And we're able to do that by tapping into our experts.
With themes like the Metaverse
helping us understand what companies are delivering.
Gaming technology solutions and softwares
to help drive more immersive gaming solutions,
or companies that are creating smart phones
and wearable tech solutions.
And then you have to remember,
when we talk about the Metaverse
and this increasingly more digital future,
that requires a lot of data.
So digital infrastructure is gonna be crucial,
and companies that are delivering data center solutions,
and then also computing power's gonna be important.
- Yeah, so I guess one way to invest in the Metaverse
is actually to invest in a bunch of companies
that make the Metaverse even possible.
But also, those that will take it to the next level, right?
- That's correct.
And you can invest in a bunch of companies
for a particular theme or strategy via ETF,
or mutual fund.
- Okay, so this is where I'm going to drop terms
like Web 3 and crypto like I actually know
what I'm talking about.
But do you need a special currency
to invest in the Metaverse?
- Well, if you're investing in a Metaverse themed ETF
or mutual fund, no.
You can use your standard Fiat US dollar.
But I'm glad that you brought up Web 3,
because you can't talk about the Metaverse
without mentioning the fact that Web 3
is really moving us from what I've heard described
as a world of internet renters
to a world of internet owners.
And what that means is now through innovations
like blockchain technology and crypto currencies,
you can actually own Metaverse space directly,
in addition to if you wanted to invest
in centralized companies that are helping
to enable the Metaverse,
like the Metaverse themed ETFs or mutual funds.
- Okay, good to know.
So I have to ask, is Fidelity literally in the Metaverse?
- We are!
We actually built an immersive, educational
Metaverse experience that we called the Fidelity Stack.
And you should check it out
if you wanna dip your toe into the Metaverse.
- [Rod] Well, it sounds like a friendly place.
I'll definitely have to visit
if that's what you call it in the Metaverse.
- [Lubna] Go to the URL on your screen
if you want to explore the Metaverse on your own.
- [Rod] Amazing.
'Cause clearly, there's always going to be more
and more to learn about this.
What are some good ways that viewers
can educate themselves?
- You should also check out our article
about investing opportunities related to the Metaverse,
and that can be accessed through our Fidelity
learning center.
The learning center is where you can search
for the latest Fidelity thinking and research
on different themes and topics.
You should also check out Fidelity.com/thematic
to learn more about thematic investing
and other strategies like the Metaverse.
- Lubna, I just wanna say thank you so much for joining us.
This has been hugely illuminating.
I'm trying to squeeze in one more Metaverse pun
but I think I'll spare you
and everyone watching this,
and instead just express my appreciation
for making me feel a little bit more confident
even just talking about this stuff.
- Well thank you.
I am glad to be here, thank you for having me.
- I'm really excited.
Our next guest is so comfortable inside the Metaverse
that for a lot of the academic year,
you can find him there literally teaching college students
in a fully tricked out virtual class room.
Do I have that right, Professor Ratan?
- Fully tricked out.
All the bells and whistles.
Nice to meet you, Rod. You can call me Robbie.
- [Rod] Okay, Robbie.
So you teach classes not only about the Metaverse
but in it.
So meta, I guess, is what you could say.
I bet you've never heard that before.
- You're the progenitor.
- Okay, good.
So how does that work exactly?
I'm really interested in this.
- So my students get a VR head set.
They borrow one or maybe some of them have their own,
and we meet in a virtual space
that is designed to kind of support meetings and classes.
We talk about VR
and then we experience it.
We try out different types of virtual objects,
modes of creating together.
They can spawn objects that they use as props
to give presentations about certain topics,
like how people connect psychologically to their avatars,
or how VR is being used for training in business
or in sports.
- A lot of learning, a lot of growth in the class room.
What skills do you feel like your students
then take with them into the real
or the virtual world that will serve them
as the Metaverse grows and develops?
- Most importantly, they're developing a media literacy.
That's what we call it.
When you fully understand how a medium is being used,
not just to convey information
but to persuade or to influence others.
So first, they need to understand
how to access this technology,
but then they're learning about how we can have
social interactions in it,
how people could train or educate in these spaces.
For art, for any sort of productive, creative activity.
So they're learning about the nuances of this technology
and how it might relate to their future productivity,
working for companies that want to take advantage
of the Metaverse or virtual reality.
- So I guess this all then raises the question,
do you have to take a college class in the Metaverse
to understand the Metaverse?
- Not at all.
All you really need is 300 bucks and an adventurous spirit.
And I'm over simplifying,
but the head sets are relatively inexpensive,
and then you need the space, good internet,
the time that you want to invest,
and of course, the excitement about investing that time
and learning about what's happening in VR.
And there are so many different options
that you can explore.
Single user or multi-user experiences.
I highly encourage you to play
with the avatar creation systems
and then go meet up with some friends,
or go meet some new friends.
- I love the parallel you just made there
to a video chat versus being together in the Metaverse.
What is something that you think is holding
the Metaverse back from becoming more fully realized
or integrated into our daily lives?
- We study adoption curves,
we know there are early adopters
and there are many out there in this Metaverse technology,
but some people might be reluctant.
There's a cost associated with it.
It's coming down, but it's still not negligible.
It's still more expensive than using a phone
that you might already have.
There's reluctance to engage
in this kind of weird game like space.
People haven't really recognized it
as being a place for productivity and business
and education yet.
I mean, the same thing with the internet, right?
In the 90s, it was gamers
and maybe you had a dial up connection
for some rare uses, email.
Slow email.
So there are all these factors that slowly changed
that lead to large scale adoption
in mass media technologies.
And we're seeing that happening,
we're seeing groups and organizations
working toward standardization
to make it easier for people to go from one virtual world
to another.
When it feels like it's a small Metaverse after all,
then maybe, in the same way as you jump in a web browser
and cruise around the internet
or around your social media networks,
you'll be much more likely to adopt this technology
on a daily basis.
- Okay, well all this potential sounds amazing.
(upbeat music)
And also a little terrifying, if I'm gonna be honest.
But mostly amazing.
Thank you so much Robbie,
and thanks again for Lubna for joining us earlier
and providing some of the missing links
between the Metaverse and the investing verse,
which is just a word I made up,
so I think sign me up for a think tank.
Seriously though, this is a theme
I think we can't say enough throughout this show,
so I'll say it again.
Gaining confidence in this space
is all about following what naturally interests you.
So hopefully, you've gotten something out of this
as an individual that does naturally interest you.
And if you wanna know more,
you can always take a look at resources
just like the ones you see right here on your screen.
And then watch out for our next bright idea.
Thanks everyone.