There is a metaverse already. It’s called Second Life and has been around for more than 20 years. Never huge, but never going away. It has a marketplace of virtual goods that residents of Second Life have created. The market deals in “Linden dollars”, which can be both bought with real dollars and sold for real dollars.
But look at a few random prices at that Marketplace link. The exchange rate is stable at about L$250 = $1. A skirt for L$399 = $1.60. A massage table (with built-in animations) for L$1698 = $7. (Three times that for the version with built-in sex animations.) A tattoo for L$299 = $1.20. The most expensive car currently on the marketplace is L$50,000 = $200, but there are also plenty selling for under $1.
There are only a very few people who have made a living from selling things in Second Life. The number of spectacular successes might be countable on the fingers of one finger.
While I love Second Life, I do not see an economy of this sort growing to become a substantial part of the total economy. What, after all, is the value of these digital goods? They are decoration for an immersive social space, and game assets for recreational use within that space. They do have value, but the marketplace shows what that value is: $200 for a top-end virtual car.
A lot of the reason why Second Life isn’t a big part of the economy is that Second Life doesn’t matter in general. It has few users and little social significance.
In China you had dating apps where people could signal their wealth by buying the most expensive virtual good available. The number I found via google is USD 67.5 billion as the global virtual goods market in 2021.
People pay a lot of money for luxury fashion items. Whether those have a physical representation isn’t the main point.
I took the word “Metaverse” to mean virtual worlds, but perhaps this is narrower than the OP intended. A dating app where the users are there to find people to physically meet is not what I would call a virtual world. Broaden it that far and you might as well call LessWrong part of “the Metaverse”.
But I am curious about these dating apps. What manner of virtual goods are these? Can you do anything with them other than showing that you bought them? That hasn’t turned out too well for NFTs, “a complicated way of buying nothing” as Penny Arcade put it.
Cryptopeople never succeeded in convincing a general population that owning expensive NFT is a positive signal. It was maybe perceived as a positive signal for a few nerds but saying “I payed 100k for an NFT” at a date was for most women more a signal for bad judgement than a positive signal.
They also lacked a way to get the NFT displayed automatically in social interactions, the way a virtual good in a dating app can be displayed.
Virtual worlds make it easy to display virtual goods during social interactions. If the social interactions within the virtal world are high stakes then users are okay with paying more to increase their status in the virtual world.
I’m not 100 percent sure but I think I heard about the Chinese example from the early days of WeChat and it was the first business model that really worked for them.
In the Chinese example, signaling wealth was a very useful signal and thus that worked in a straightforward way.
If you on the other hand, have a virtual LessWrong conference (and currently such a thing is even planned) then I don’t primarily care about the wealth of people I’m speaking with. If some users on the other hand had a badge that they could have only brought if they were at a CFAR workshop, I might be inclined to be more likely to chat with people who have the CFAR badge.
At a virtual EA global conference, EA charities could sell virtual goods that participants could then wear. I would expect that it would be a positive status signal at a virtual EA global conference if someone wears a virtual good that they brought for 100,000 dollar from AMF. People at EA global are th Bere for professional networking and the fact that someone essentially donated that money to AMF is a sign that they are a valuable person to network with.
Different virtual world events will have different qualities that are worthy to signal and you are going to have similar dynamics as meatspace fashion being an “insider” can mean that you know how to signal to other “insiders” that you are an insider by chosing the virtual goods you wear.
The kind of people who put Black Lives Matter on their twitter profile, might buy a Black Lives Matter virtual T-Shirt that’s sold by the Black Lives Matter foundation. Then you also have marketing agencies that will pay influencers to wear certain virtual goods and in some scenarios that will make it a good social signal to wear the current goods that the influencers wear. It’s all about how much signaling matters within the virtual world.
There is a metaverse already. It’s called Second Life and has been around for more than 20 years. Never huge, but never going away. It has a marketplace of virtual goods that residents of Second Life have created. The market deals in “Linden dollars”, which can be both bought with real dollars and sold for real dollars.
But look at a few random prices at that Marketplace link. The exchange rate is stable at about L$250 = $1. A skirt for L$399 = $1.60. A massage table (with built-in animations) for L$1698 = $7. (Three times that for the version with built-in sex animations.) A tattoo for L$299 = $1.20. The most expensive car currently on the marketplace is L$50,000 = $200, but there are also plenty selling for under $1.
There are only a very few people who have made a living from selling things in Second Life. The number of spectacular successes might be countable on the fingers of one finger.
While I love Second Life, I do not see an economy of this sort growing to become a substantial part of the total economy. What, after all, is the value of these digital goods? They are decoration for an immersive social space, and game assets for recreational use within that space. They do have value, but the marketplace shows what that value is: $200 for a top-end virtual car.
A lot of the reason why Second Life isn’t a big part of the economy is that Second Life doesn’t matter in general. It has few users and little social significance.
In China you had dating apps where people could signal their wealth by buying the most expensive virtual good available. The number I found via google is USD 67.5 billion as the global virtual goods market in 2021.
People pay a lot of money for luxury fashion items. Whether those have a physical representation isn’t the main point.
I took the word “Metaverse” to mean virtual worlds, but perhaps this is narrower than the OP intended. A dating app where the users are there to find people to physically meet is not what I would call a virtual world. Broaden it that far and you might as well call LessWrong part of “the Metaverse”.
But I am curious about these dating apps. What manner of virtual goods are these? Can you do anything with them other than showing that you bought them? That hasn’t turned out too well for NFTs, “a complicated way of buying nothing” as Penny Arcade put it.
You can make an argument that current dating apps aren’t metaverse-based but that doesn’t mean that this is an inherent feature of dating apps. https://techcrunch.com/2021/11/03/match-group-details-plans-for-a-dating-metaverse-tinders-virtual-goods-based-economy/ sounds to me like something everyone would call metaverse.
Cryptopeople never succeeded in convincing a general population that owning expensive NFT is a positive signal. It was maybe perceived as a positive signal for a few nerds but saying “I payed 100k for an NFT” at a date was for most women more a signal for bad judgement than a positive signal.
They also lacked a way to get the NFT displayed automatically in social interactions, the way a virtual good in a dating app can be displayed.
Virtual worlds make it easy to display virtual goods during social interactions. If the social interactions within the virtal world are high stakes then users are okay with paying more to increase their status in the virtual world.
I’m not 100 percent sure but I think I heard about the Chinese example from the early days of WeChat and it was the first business model that really worked for them.
In the Chinese example, signaling wealth was a very useful signal and thus that worked in a straightforward way.
If you on the other hand, have a virtual LessWrong conference (and currently such a thing is even planned) then I don’t primarily care about the wealth of people I’m speaking with. If some users on the other hand had a badge that they could have only brought if they were at a CFAR workshop, I might be inclined to be more likely to chat with people who have the CFAR badge.
At a virtual EA global conference, EA charities could sell virtual goods that participants could then wear. I would expect that it would be a positive status signal at a virtual EA global conference if someone wears a virtual good that they brought for 100,000 dollar from AMF. People at EA global are th Bere for professional networking and the fact that someone essentially donated that money to AMF is a sign that they are a valuable person to network with.
Different virtual world events will have different qualities that are worthy to signal and you are going to have similar dynamics as meatspace fashion being an “insider” can mean that you know how to signal to other “insiders” that you are an insider by chosing the virtual goods you wear.
The kind of people who put Black Lives Matter on their twitter profile, might buy a Black Lives Matter virtual T-Shirt that’s sold by the Black Lives Matter foundation. Then you also have marketing agencies that will pay influencers to wear certain virtual goods and in some scenarios that will make it a good social signal to wear the current goods that the influencers wear. It’s all about how much signaling matters within the virtual world.