Will the Metaverse be a nightmare?

It is overwhelming most people’s cognition

Zhongqingbao, which has always lacked attention, suddenly became a super dark horse in the A-share market. On November 9, Zhongqingbao still rose 9% on the same day. From September to November, Zhongqingbao’s share price rose more than 300%. 

The stock price explosion naturally stems from the popularity of the “meta universe” concept. 

A super trend has suddenly risen, and capital has placed bets. After all the complicated explanations, it is time to make a summary of this topic. 

Several people in the industry have stated to the market that the era of meta-universe is bound to come, and it may not be too far away.

Most viewpoints mention that the meta-universe is a spatial concept, which is to construct a virtual world parallel to the real physical world. Through some kind of equipment, we can enter this virtual space and do things that we might not be able to imagine in the real world. . 

But a more profound view is that the meta universe is a progressive concept of time. With the gradual deepening of digital life, we are already on the way to the meta universe.

Twenty years ago, we could hardly imagine the transformation of the world by the mobile Internet, let alone the birth of blockchain and Bitcoin. The current imagination about the meta-universe, in fact, it is difficult to have an accurate description. 

But a true meta-universe will most likely be a decentralized world. In the meta-universe era, no giant will form a monopoly. It is a relatively diverse world, but it also carries multiple risks. 

1 What exactly is the meta universe?

What is the meta universe? 

It is not surprising that many people only have vague concepts in their minds. 

Because the meta-universe currently only exists in theory, it is only a theoretical concept, but all current Internet technology trends, cloud, 5G, 6G, VR, and AR all point to the future of mankind, which will usher in a more immersive and real sense of experience. Virtual world. 

The meta-universe is this virtual world that coexists in parallel with the real world and integrates with each other. The arrival of Meta Universe will be based on a new ecology built by next-generation network technology. 

Which generation and year is this next-generation technology? There is no precise conclusion. It’s just that at that time we can experience basic necessities, food, shelter, transportation, study and work, and even love and make friends in a more immersive online virtual world. 

This is more like a process. Because, roughly speaking, we can now also experience clothing, food, housing, transportation, study and work, love and make friends in the online world, but it is too rough, too fake, and too many media and tools are used, which affects the experience. 

Foreign netizen “Shaan Puri” put forward a more recognized definition. 

In his view, the meta universe is not a concept of space, but a concept of time. The meta universe is a moment, a moment when our digital life becomes more valuable than our physical life.

According to this understanding, our lives have already been transformed into the meta-universe: “Work has been transferred from the factory to the computer, from the meeting room to the video conferencing software, our friends have turned from neighbors to online followers. And we are passionate about games. , Also shifted from offline to online. When our attention to the screen transitions from 50% to more than 90%, then the meta-universe will begin.” 

Shaan Puri believes that this is neither a good thing nor a bad thing, but a very different thing.

This theory is endorsed by Luo Yonghao. Under this definition, he said that most IT companies are actually leading us to the meta universe. 

Will the Metaverse be a nightmare?

(Luo Yonghao) 

This is easy to understand. Since the meta-universe is “a moment when our digital life becomes more valuable than our physical life”, then all Internet-related work is basically advancing the process of the meta-universe, selling goods, Live streaming, mobile phones, VR, and games all increase the value of the digital world. 

You who read this article in front of the screen are actually promoting the arrival of the meta-universe. When people are more immersed in digital life, this in itself is also an important way to promote the arrival of the meta-universe.

Wang Yingbo, Ph.D. of Economics at the Shanghai Academy of Social Sciences, pointed out to the city circles that the digitization of each specific industry belongs to the initial stage of digitization. The so-called meta-universe is to form a complete system of this scattered digitization to construct a virtual twin real world. 

“It can be understood as a part of networking, combining the previously dispersed networks into a more complex and fully functional system.” 

So did you find it? The “meta universe” sought after by some companies is not unreasonably defined as “old wine in new bottles”.

It is a scene after VR technology has a better experience; it is a time when people are more immersed in digital life and can do more things in the virtual network world; it is more to bring human happiness, sorrow, sorrow, social value, Social needs are magnified in the digital world. 

This is an inevitable process of the evolution of Internet technology. People who are good at packaging seem to have suddenly discovered the new world , so they make a fuss with the concept of “meta universe”. 

In fact, there is no clear standard definition of what a meta universe is. It is worth noting that a core vision of Metaverse is decentralization. In other words, the meta-universe space created by a certain company will not be truly controlled by the company. 

An investor who pays attention to Metaverse described this story to the market: his friend has two digital cats, but this kind of virtual pet is not like the video games we usually play, which can be turned off and restarted. These two cats will live and die naturally in their world according to certain rules. 

The real meta-universe will have a set of operating mechanism, which is uncontrollable to some extent. And this means a certain risk.

Report New Media Research Center of Tsinghua University, pointed out that the yuan universe and the real world, the need for a complete monetary system, economic order and social rules, management system, cultural system and even legally binding, Yuan universe of public and social to make full To a certain extent, centralization has become a false proposition.

But at the same time, it is certain that the meta universe will have a greater degree of freedom than the current world. 

As for the recent capital market’s discontinued layout, to build one’s own meta universe products, in fact, there is still a big gap with the true meta universe concept. 

2 Why did the meta universe explode at this time?

Why did the concept of meta universe explode in 2021? This is not accidental. 

The detonation of this concept in 2021 is a foreign company named Roblox (Chinese name “Roblox”). In 2020, Roblox is valued at approximately US$4 billion. When it landed on the New York Stock Exchange on March 10, 2021, Roblox’s market value exceeded $40 billion on that day. 

The company’s goal is to create a meta-universe for the realization of “common human experience” through user-generated content. 

Roblox not only provides players with games, but also provides tools for players to create their own games, and provides programming language learning, 3D scene construction, programming learning and other content to help them develop games. 

Will the Metaverse be a nightmare?

(Roblox game interface. Source: Tianfeng Securities) 

The epidemic directly promoted the outbreak of the meta-universe concept. 

In the past two years, some online activities have changed from short-term sporadic to normal. The digital world is closely integrated with the real world, and people are becoming more and more like amphibious species between the digital and real world. 

This makes more people aware of the possibility of the development of the Internet. 

There has been no substantial technological innovation in the global Internet industry for many years. Internet giants believe that whoever can master the entrance to the meta-universe will be able to dominate in the next era. 

Facebook stopped “face” directly, and changed its name to “META”. In Zuckerberg’s view, Metaverse is the next frontier, and Metaverse will be given priority in the future, not Facebook.

In this virtual space, users will not just watch the content, but be in it. “Imagine how much of today’s physical things may be just holograms in the future. Televisions, board games, etc.-they will be holograms designed by creators around the world, rather than physical objects assembled in factories. ” 

According to Zuckerberg’s description, in the meta-universe era, people will have different experiences on different devices. For example, the use of augmented reality glasses allows us to stay in the real world, and through virtual reality equipment, we can be completely immersed in the virtual space.

Zuckerberg predicts that in the next ten years, Metaverse will have 1 billion users and hundreds of billions of dollars in digital commerce. 

Microsoft has also revealed its ambitions for Metaverse and wants to expand Metaverse applications in the enterprise field. For example, Microsoft wants to let everyone use virtual images in the metaverse to hold meetings in virtual spaces. 

Will the Metaverse be a nightmare?

(In a virtual world, meetings are more convenient. Source: Screenshot of Microsoft Press Conference) 

Nike also came to join in the fun, it submitted a trademark application, hoping to protect the “Just do it” slogan and other identifiable signs in the virtual world. 

In the future, you may not be able to pinch the “hook” and use “Just do it” at will. Your virtual character will have to pay if you want to wear Nike shoes.

When it comes to speculation, of course, the A-share market is indispensable. 

3 yuan universe, stock price magic drug

In March 2021, Roblox was listed on the New York Stock Exchange. 

Also in March, the domestic A-share listed Zhongqingbao also coincidentally began to conceive a game called “Brewmaster”. 

A rough game demo was formed at the end of June, and the project was approved by the company in August. 

In the official account released by Zhongqingbao on September 6, this game was described as “a simulated business game that can map the player’s inner world to the metaverse” and “has a strong tendency to enter the metaverse game.” The next day Zhongqing Bao began to show two consecutive daily limits. 

On September 9th, Zhongqingbao issued another public article titled “Zhongqingbaoyuan Universe Game “Master of Brew”, so stay tuned!”, which continued to drive the stock price up. 

Will the Metaverse be a nightmare?

Now Zhongqingbao has become the super dark horse in the A-share market and the leader of the meta universe concept.

Zhongqingbaoben is a company engaged in the development, operation and agency business of online games. After that, it gradually developed into three sectors: games, cloud services, and science, technology, culture and tourism. It once introduced itself like this: the first domestic A-share listed game company, the pioneer and leader of red patriotic online games. It also developed the IP “Bright Sword” into a game. 

At the end of September 2021, Zhongqingbao’s monetary capital was only 78.522 million yuan, which could not cover 115 million yuan of short-term interest-bearing debt. 

As a “game company”, Zhongqingbao should have operated with light assets, but its fixed assets accounted for 23.31% of total assets at the end of 2020, which ranked third among the 25 listed companies in the same industry in A-shares. At the same time, Zhongqingbao’s fixed asset turnover rate is only 1.42, ranking fourth from the bottom. 

The two listed companies with a higher proportion of fixed assets have been “ST”, and the three companies with a lower turnover rate have also been “ST”.

The asset quality is worrying, and the profitability of Zhongqingbao is not ideal. Since its listing, the net interest rate of Zhongqingbao has been in a trend of ups and downs. In 2016 and 2020, there were losses of 66 million yuan and 137 million yuan respectively. 

Will the Metaverse be a nightmare?

Mainstream game companies such as Gigabit, Giant Network , Palm Fun Technology and Perfect World will have a per capita salary of between 399,300 yuan and 793,500 yuan in 2020, and the proportion of research and development personnel will be more than 50%, and even 75%. 

However, the per capita salary of Zhongqingbao in 2020 is 162,400 yuan, and only three ST companies and one Caesars culture are lower than it . 

The proportion of R&D personnel is only 25.99%, which is half the average of 51.95%. 

There is not much money, and most of it is spent on fixed assets with low utilization rates. It seems that Zhongqingbao has to rely on a bunch of machinery and equipment to build its own meta universe.

Going back to the popular game “Brewmaster”, it is actually an online game that cooperates with the winery. The special feature is that the wine made by the user in the virtual world can be picked up offline in the winery brand’s physical store. . 

Do you want to say that it is a meta universe? Also, after all, the concept of Metaverse is so complicated and broad. As mentioned earlier, the business of all Internet companies basically promotes the process of Metaverse. 

But “Master Brewer” only plans to invest 5-15 million yuan. The exchange also questioned, is this serious? 

Even Zuckerberg said that Facebook will be in the stage of laying a foundation in Metaverse in the next 1-3 years and will not generate profit in the near future. In 2021, the total investment in Facebook Reality Labs will reach 10 billion US dollars.

In contrast, Zhongqingbao emphasized that its “investment in VR products always exists”, and cited three products-“The Last Shot”, “Flying the Great Wall”, and “The Time Tunnel of Jinsha Ancient and Old Past and Present”, all of which are slightly reluctant . 

In the actual photos of “The Last Shot”, only a few large toy tanks and children’s VR animation equipment are placed in a certain exhibition hall. “Flying the Great Wall” is a VR experience hall located at the foot of the Great Wall, and there are very few reviews on the public comment. The “Time Tunnel” project, which was just launched in early 2021, is still under development. 

Will the Metaverse be a nightmare?

(Source: Company announcement) 

Zhongqingbao’s 2019 annual report stated that it is necessary to integrate game technology and VR/AR technology with the tourism industry to create a new scientific, technological and cultural theme park and take the road of scientific and technological cultural tourism development. ” 

However, the VR-related “Science, Technology, Cultural and Tourism” business segment will only have revenue of 816,200 yuan in 2020, which is roughly equivalent to nothing. 

In addition to Zhongqingbao, companies such as Tianxiaxiu and Jiachuang Video under the concept of Metaverse have also ushered in soaring stock prices. In the past month, both have risen by 70%. 

Tianxia Show is known as “the first stock of the celebrity economy”, and its main business is new media marketing. In the first wave of the meta-universe in September , Tianxia Show suddenly said to the outside world that it was developing a social meta-universe product “Rainbow Universe”, which could unite with global social celebrities to create an immersive pan-entertainment virtual life community for users.

Jiachuang Video’s business seems to be closer to the concept of Meta Universe, because its main business involves 5G audio and video application development and cooperative operation business, VR content services, and the development of VR game products. The meta-universe concept has exploded, and VR industry chain companies have benefited together. 

4 Conclusion

There is no timetable for the arrival of the meta universe, but because most people do not understand it and the intentions are fueling the flames, it has become a popular market concept. 

As a technological advancement, the meta universe naturally has a positive meaning. 

But even Roblox, the company that is closest to the meta-universe concept, is only somewhat similar to the experience brought by the meta-universe, and is still far from the general concept of virtual reality represented by the meta-universe. 

At the same time, technological change has always been a double-edged sword. 

The establishment of the meta-universe requires not only the maturity and popularization of a series of technologies such as VR and 5G, but also how to establish an economic system and cultural ecology in the virtual world, as well as how to balance the virtual and real world. Even the current Internet life, in addition to providing convenience, has become an obstacle to daily work and study to a certain extent. It may really be “entertainment to death” in the era of the metaverse.

These are more complicated than technology, and if they are not handled well, the meta-universe is a nightmare. 

A nightmare that everyone can’t wake up.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/will-the-metaverse-be-a-nightmare/
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