Real estate is expensive, and the prices keep rising sharply. Unfortunately, it is a reality of our lives. However, we don’t mean New York, London, or Monaco. It turned out that some of the world’s most valuable and pricey land is not even based on the earth, and, actually, it even doesn’t exist in real life. Yes, we are talking about the Metaverse again.
Institutional investors and wealthy crypto enthusiasts are now paying millions in return for virtual lands. IT leaders, technology followers, and prospective Metaverse users are being drawn in to snap up a digital property. But what is all the buzz? Today, let’s find out what is behind the Metaverse virtual land rush, what buying land in the Metaverse means, how you can join in, and more about Metaverse you can find here.
What is a metaverse NFT for real estate? We use titles and deeds to prove our ownership of land in real life. To keep track of ownership records in, we use blockchain technology (ledger).
Real Estate in the Metaverse is parcels of land in a virtual world. In brief and the most straightforward sense, they can be called pixels, the smallest units of a digital image or graphic that can be displayed and represented on a digital display device. However, in this case, they are more than just digital images. They are programmable spaces in virtual reality platforms where users can communicate, play games, buy and sell non-fungible tokens (NFTs), attend events, go to virtual music concerts, and so much more.
With the success of the Metaverse we saw in 2021, digital real estate is expected to expand and skyrocket as well. In fact, the value of Metaverse real estate is forecasted to have a CAGR of over 30% from 2022 to 2028.
Buying land as an NFT in the Metaverse makes the user an actual owner of digital real estate. The Metaverse is not a single digital world where things happen. There is much more than just one Metaverse. Some of them can be used for business, others for gaming, some for entertainment, etc. In short, what exactly a user can do with their land depends on the Metaverse they are in.
For example, if it is a business sector, the land owner can rent it out to different businesses. A land of a gaming Metaverse allows creating games. Owning land in the Metaverse offers various exciting opportunities that are endless. The only limit is imagination.
Most statistics on the Metaverse real estate appear to be positive. For example, Sandbox ($LAND) grew by 15,000% in the past year. Furthermore, in 2021, Metaverse real estate sales on the four major platforms reached over $500 million and are expected to double to $1 billion in 2022.
The Metaverse real estate indicates massive gains for early so-called settlers on the virtual platforms. However, just like the early days of the entire crypto and NFT sectors, virtual land is still in its nascent stage. As technology continues to develop and change dramatically, the Metaverse has all the chances to evolve and skyrocket along with virtual land and its applications. But as with any investment, it is almost impossible to determine whether it will go up or down, and you should never invest more than you can afford to lose.
Even though the Metaverse is expected to skyrocket in the next couple of years, it is still a new industry that is far from stable. For example, if any Metaverse platform goes offline permanently, all the land and digital assets automatically become non-existent.
Moreover, there is always the question of how to assign value to land. Its scarcity is artificial, and it is impossible to quantify future value. Unfortunately, the Metaverse land is susceptible to highly volatile conditions.
Many experts believe investing in Metaverse real estate is highly speculative rather than prospective. In virtual worlds, everyone can lose all investments in a blink of an eye. However, the rapid shift to full digitalization in almost all industries can also potentially reap significant returns on Metaverse real estate investments.
Investors can start investing from anywhere in the world by setting up a cryptocurrency wallet. It is possible to buy global real estate without any restrictions and micro-land parcels are available that are affordable to everyone.
Before making any investment decision, you should do your own research (DYOR) and learn as much as possible about the crypto project. Find out how to understand all the risks and challenges by reading our GamesPad DYOR guide. Keep in mind that only after you have carefully considered all the pros and cons will you be able to make an investment decision.
Buying and selling virtual land in the Metaverse follows the same non-fungible tokens (NFTs) sales principles. Therefore, it usually should not be much of a hassle. Go through the following steps:
The Big Four owns the majority of metaverse real property. These four major players are Decentraland and Sandbox as well as Somnium Space and Cryptovoxels. These platforms control a total 268,645 parcels which are some of the most expensive on the marke.
Real estate in the Metaverse might seem like a head-spinning concept to many investors, traders, and crypto enthusiasts. The potential of virtual worlds and adjacent technologies like VR and artificial intelligence can hardly be disputed. However, only time will show whether the real estate in the Metaverse is just another speculative investment or it holds the future.
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Disclaimer. This material should not be construed as a basis for making investment decisions or as a recommendation to participate in investment transactions. Trading digital assets may involve significant risks and can result in the loss of invested capital. Therefore, you must ensure that you fully understand the risk involved, consider your level of experience, investment objectives, and seek independent financial advice if necessary.