Theo Tzanidis, Lecturer in Digital Marketing, University of West Scotland.
real estate sector In metaverso It’s booming. crazy?
the idea of spending thousands or even millions of dollars to buy imaginary “land” in Virtual World Sounds, to be honest, absurd.
But in the last few months we’ve seen significant investment invirtual land Within the Metaverse. PwC is one of the latest to take the plunge, buying real estate in The Sandbox, a virtual game world, for an undisclosed amount.
If the other reported sales were anything to go by, it would have been a decent amount. A person has recently bought a plot of land snoopverse – a virtual world that rapper Snoop Dogg is developing within the sandbox – for 450.000 USD,
Meanwhile, Metaverse Group, a real estate company focused on the Metaverse economy, has reportedly bought a plot of land in Decentraland, another virtual platform. for $2.43 million,
Let’s find out what a “metaverse” is. You probably heard this term a lot when Facebook changed the branding to meta in October 2021. Other companies, such as Nike and Microsofthas announced that they will launch into this space.
The Metaverse describes the vision of a connected 3D virtual world, in which the real and digital worlds are integrated using technologies such as virtual reality (VR) and augmented reality (AR). This immersive environment can be accessed through VR headsets, AR glasses and smartphone apps.
Users will meet and communicate as digital avatars, explore new territories and create content. The idea is that the metaverse will evolve to become a collaborative virtual space where we can socialize, play, work and learn.
There are already several metaverses, for example in virtual gaming platforms such as The Sandbox and virtual worlds such as Decentraland. Just as a website is part of the larger 2D World Wide Web, different metaverses will form a larger and more connected metaverse.
Importantly, as in the real world, it will be possible to buy things in the metaverse, including real estate.
virtual land nft. In form of
Transactions in the virtual world are usually monetized using cryptocurrency. In addition to cryptocurrencies, non-fungible tokens (NFTs) are the primary method of monetization and exchange of value within the metaverse.
NFTs are a unique digital asset. Although NFTs are primarily digital art objects (such as video, pictures, music, or 3D objects), a variety of assets can make up NFTs, including virtual real estate. on platforms like open seaWhere people go to buy and trade NFTs, there are now plots of land or even virtual houses.
To ensure that digital real estate has value, supply is limited, a concept in economics known as ‘lack of value’. For example, Decentraland is made up of 90,000 pieces or “parcels” of land, each approximately 50 feet by 50 feet.
We are already seeing instances where the value of virtual real estate is increasing. In June 2021, a digital real estate investment fund called Republic Real will have spent the equivalent of over USD 900,000 To buy an NFT that represents a plot on Decentraland. second DappRadar, a website that tracks NFT sales data, was the most expensive purchase of NFT land in Decentraland’s history.
But then, as we know, in November 2021, Metaverse Group bought its plot in Decentraland for $2.4 million. The size of this purchase was actually smaller than the previous one: 116 plots as compared to 259 plots purchased by the Republic Sector.
There are many metaverses already. SFIO Crecho/Shutterstock
Seeing praise is not only Decentraland. In February 2021, Axie Infinity (another virtual game world) will sell nine of its parcels of land for the equivalent of $1.5 million – a record, the company said – before a single parcel of land was sold. $2.3 million in November 2021.
While it appears that values are rising, it is important to recognize that real estate investing in the metaverse remains highly speculative. No one can be sure whether this boom will be the next big thing or the next big bubble.
The Future of the Real Estate Metaverse
Financial incentives aside, you may be wondering what companies and individuals will actually do with their virtual land.
For example, the purchase of Metaverse Group is in the Decentraland Fashion District. According to the buyer, the space will be used to host digital fashion events and sell virtual avatar clothing, another potential growth area in the metaverse.
While this space is dominated by investors and businesses at the moment, not all metaverse real estate is going to make you millions. But what can virtual land owners give you? If you buy physical property in the real world, the result is tangible: a place to live, be proud of, welcome family and friends.
While virtual ownership does not provide physical shelter, there are some similarities. By purchasing virtual real estate, you can buy a piece of land for construction. Or you can choose a pre-built house that you like. You can personalize it with various (digital) items. You can invite visitors and also visit virtual homes of others.
This vision is distant. But if this sounds completely absurd, we must remember that people were once skeptical about the potential meaning of the internet and then social media. Technologists predict the metaverse will ‘mature into a’fully functioning economy Over the next few years, providing a synchronous digital experience woven into our lives in the form of email and social networks.
It’s a strange fantasy coming true for someone who was a gamer in a past life. A few years ago, a younger version of my conscience was telling me to stop wasting time playing video games; To go back to studies and focus on my “real” life. Deep down I’ve always wanted games to overlap with real life, in style. real player one, I think this vision is getting closer and closer.
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to know more:
– A guide on how to buy virtual lands in the Metaverse
– Samsung opens a temporary shop in Decentraland
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