Former hedge fund manager and Mad Money host Jim Cramer believes the metaverse will transform work and industry, and help to eliminate costs and waste.
The metaverse has been a hot topic of discussion since Mark Zuckerberg announced that Facebook would rebrand to Meta. In the past month, crypto metaverse projects such as Dentraland (MANA) and Sandbox (SAND) have been performing well with MANA up by 561% and SAND up by 755%.
While some of the early beneficiaries of metaverse hype have been working on its social or gaming applications, Cramer sees industrial applications as the important area for emphasis.
“I think we’re all going to be in it, we’re all going to have fun with it, but it’s really a manufacturing situation. What the metaverse is — it’s about eliminating waste. A company can eliminate a third of its costs using the metaverse,” said Cramer on CNBC earlier this week. “We have to think of it as an industrial play, not just a fun play.”
Nvidia is trying to make it so there is less waste in the manufacturing system and they’re succeeding. It’s fun, but it’s also very useful. It’s a play on getting rid of costs we can’t control otherwise. That’s what we have to remember it as, not fun and games.
Co-host Andrew Rose Sorkin was quick to query how the metaverse makes business so much more efficient. Questioning where the savings come from Sorkin said, “What costs are we talking about here; commuting costs?”
“A BMW factory was simulated at Nvidia,” replied Cramer. “They can then use it to find ways that things can be done faster and better because everything is done by computer. There are a trillion calculations to it, but [Nvidia CEO] Jensen Huang showed me exactly how BMW has been able to use the [Nvidia] omniverse to cut out a lot of waste in its plants. I’m talking about a reduction of 30% in costs.”
Omniverse is the name which Nvidia has given its own metaverse technology.
As BeInCrypto previously reported, Nvidia CEO Jensen Huang has predicted that the metaverse economy may one day exceed $80+ trillion, making it even more valuable than the current economy of the tangible world.
While Zuckerberg’s plans for Meta have unsurprisingly placed a strong emphasis on the social applications of the technology, Huang is gearing Nvidia’s omniverse more heavily towards scientific and business applications.
At the moment the vast bulk of crypto metaverse projects are placing focus on gaming, social, and lifestyle applications for their products. Axie Infinity is making great early progress in the gaming sphere with a $9 billion market cap. In the virtual world categories, Sandbox and Decentraland are the names to beat.
On Sept 23, Sandbox announced a collaboration with Snoop Dogg that would recreate the rapper’s mansion and create a private pass party. Decentraland too is offering metaverse music events with Deadmau5 and Paris Hilton headlining a virtual concert last month.
Enjin meanwhile, is making great progress in the arena of digital goods, driving forward new standards in NFTs and the trading of NFTs. Enjin underlines the point that the future of digital ownership will be built on blockchain technology.
While all of this is undoubtably good news for the sector, it does appear that the bulk of crypto projects are eschewing heavy industry in favor of social and gaming applications. For that reason, they could be missing a trick.
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