- 80% of US Millennials claim their digital identities are important to them.
- 44% of consumers believe the Metaverse is an opportunity to reinvent themselves.
The increasing porousness of the lines between the digital and the “real” world is best seen through the growing demand and acceptance of digital items and assets.
These items, which not only include NFTs and video games but also audio and video material, video game skins and avatars, have become core elements of people’s identities. For many, a shirt bought at a music festival is just as important and has just as many fond memories as an Overwatch skin.
CEO of Bankless TimesWe live in exciting times. Before our very eyes, people are transitioning to the digital space, valuing it almost as much as the physical world. This leads to the generation of fertile ground not only for the development of new technologies but also for the development of new markets and investment opportunities.
This BanklessTimes.com report investigates just how important digital items and assets have become.
A Growing Connection to the Digital World
A 2022 study polled 2000 American and 2000 UK citizens on their opinions regarding the Metaverse and digital items.
According to the study, 67% of Americans and 53% of UK citizens claim that their digital identities are important to them. For US Millennials, that number rose to 80%. Furthermore, 71% (74% US, 67% UK) believe that their digital items are part of who they are.
Digital items are slowly becoming extensions of people’s identities, just like physical goods.
Further moving within this idea of a digital identity becoming as important as the physical, 44% of consumers (56% US vs. 32% UK) believe the Metaverse provides them with an opportunity to reinvent themselves.
Finally, 86% (87% US and 85% UK) claim that their digital items remind them of important moments in their lives.
This research might seem surprising, but it points towards the importance of online socialization and online connections. Owning avatars you got from a co-op game you played with a friend can serve as just a powerful reminder of the good times you had as a souvenir from a trip.
The pandemic, an emerging market and affordability further explain
Of course, the Pandemic, and subsequent lockdowns, had an impact. Forced to stay indoors, people were already forced to socialize online, and became more used to constantly being online. In fact, 90% of Americans state that the internet has been essential for them during the Pandemic.
Another important development is the strengthening of a (relatively) new market. According to the aforementioned study, 52% of Americans buy, sell, and trade digital items. Furthermore, 28% spend $49 a month on these assets.
Next, 74% of American Millennials polled believe these items represent good investment options. And in fact, new licensing regulations for digital asset trading are springing up more and more. According to Renato Cagno’s book “The Digital Goods Age – Why Digital Products Will Disrupt Commerce”, this market is already huge, with a global value of $950 billion, and is “growing twice as fast” as the regular goods market.
Finally, 48% of US and 33% of UK consumers stated they are more likely to buy digital land because it is more affordable and/or attainable than physical property. No surprise when you consider the state of the US and UK housing markets.
The idea of digital items being worthless, or that digital assets are something only for adolescents obsessed with gaming is simply not true. The lines between physical and digital goods are getting blurred, and digital assets are becoming more and more valuable and popular not only as commodities that shape our identities, but as investment opportunities as well.
