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- Prominent investments have been made in the Metaverse in recent months, and it seems to be growing at an incredible pace.
- While the values are escalating, it is essential to address that real estate investment in the metaverse stays intensely dicey.
- Although a physical shelter is not offered by the digital properties, there certainly are some parallels.
The thought of spending a plethora of money on purchasing digital lands, without a doubt, sounds crazy. But the investments in digital lands have escalated seriously in the metaverse. PwC is the fresh entrant to join the community, having a real estate acquired in The Sandbox. Sandbox is a video game with an unrevealed worth. If the reported sales are true, it would be a lot of money. An individual acquired a land parcel in Snoopverse, a digital universe under development by a famous rapper Snoop Dogg in the Sandbox. Meanwhile, a real estate organization, the Metaverse, has also acquired land in a virtual platform called Decentraland worth $2.43 Million.
It is worth noting that social media behemoth Facebook also changed its title to Meta, while organizations like Microsoft and Nike are also entering the space.
Metaverse determines the perspective of a linked real and a three-dimensional world, where the virtual and real-world will amalgamate through techs like AR and VR. The users will be allowed to interact through their virtual avatars, create content and explore the metaverse. The idea concentrates on learning, working, playing, and socializing in virtual universes. Many metaverses are already operating among us, such as Decentraland and Sandbox. In a similar way, a website is an element of a more comprehensive two-dimensional world wide web, a more prominent and linked metaverse will be created through specific metaverses. And most importantly, things can be purchased in this metaverse.
Digital Property as a Non Fungible Token
In digital spaces, transactions are done through crypto assets, and NFTs are the other major means of monetizing the transactions in the metaverse.
An NFT is a distinct virtual asset and usually consists of digital art like paintings, music, etc., but on some large NFT platforms, people can trade NFTs in the form of virtual lands or buildings.
The concept of scarcity value is utilized by metaverse to make sure the real estate in metaverse has value. For example, Decentraland consists of 90,000 parcels or pieces of digital land, and every parcel is around 50 X 50 Feet.
Values of digital real estate are already escalating. The Republican realm spent over $900,000 in an NFT purchase mirroring a digital land in Decentraland, the Metaverse group also purchased land worth $2.4 Million in Decentraland.
Apart from Decentraland, Axie Infinity also experienced sales of $2.3 Million back in November 2021.
Even though the costs are escalating, investing in the virtual real estates in the metaverse are intensely dicey. No one can say whether it will boom or blow up the investment.
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Virtual Real Estate’s Future
While the organizations and Investors are dominating the space currently, not every metaverse guarantees massive returns. But what will you get by purchasing a digital land? Purchasing a real-world property is offering you shelter while the virtual property is not. But there are some parallels like, individuals can build on a digital piece of property or buy something that is already built, like a house. Individuals can be invited to this digital space the person owns.
This seems like a crazy idea, but the internet was once absurd for the people too, but it came into existence anyway. It is forecasted by techs that the metaverse will evolve into a completely functional economy in the future and will be an essential element in our lives like social media and email.
For a gamer like me, this would be a dream come true, as I always wish the concept of ‘Ready Player One’ would take over the world someday. It seems like the day is getting closer every day.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
