The metaverse is rapidly approaching – connected, persistent virtual reality where we will live our digital lives alongside those of real life. These spaces will be increasingly used to learn, work, socialize, and play. We can also interact with them digitally from our own homes. This includes making money and investing, and property investment will be a popular way to do so.
Metaverse real estate, or should it be virtual estate? It is a huge business. Some of the most prominent people in the world, such as Snoop dog and global companies like PwC, JP Morgan and HSBC have already purchased plots of virtual property that they plan to use for a variety purposes. The early investors have seen huge returns, at least on paper. A year ago, the average cost of the smallest plots of land on Decentraland and the Sandbox – the two largest metaverse platforms – was less than $1,000. It’s now at $13,000.
This is another opportunity to grab the most recent digital assets before they go bust. What about buying Bitcoin 10 years back or NFTs 2 years ago? What can you do to get in on the action if you’re keen to participate? Is it better to keep your distance from what could end up being an exaggerated bubble about to burst? Continue reading to learn more!
Why should you buy metaverse land?
You can buy land in metaverse just like you would in real life. First, and most importantly, you will use the land for something. This could be building a home or a business location. We mean to have a home in the metaverse that you can share your possessions with others and where you can even invite friends to visit. It’s similar to having your own personal website back in the early days. Metaverse “homes”, will allow individuals to express themselves online, or store their unique digital collectibles. It’s more likely you will get what you want from your metaverse land purchase, which is the most risky reason to buy it.
The second reason is to invest. Here things could get a little shaky as there is no guarantee that it will increase in value. We are currently experiencing a metaverse real estate gold rush, with average prices rising by 10 times over the past year. Many are purchasing digital land because they believe it will become more valuable as more people get involved. Many are buying to let, and there is a growing rental market.
Where can I purchase metaverse land?
It is common to use cryptocurrencies to buy land in the metaverse. Ethereum, SAND (the currency that is connected with the gamified metaverse platform The Sandbox), and MANA (connected with the community-based Decentralandplatform). These are usually available in the first step.
These platforms are the best for owning property and land online. They have a well-established infrastructure, and other well-known tenants and landlords such as celebrities and companies.
You can purchase land directly on these platforms. You will need a wallet that can store NFTs to record the sale and ownership of metaverse land. Binance and Metamask are the most common.
A busy market for third-party resellers exists as well as platforms. This is just like real-world real property. Platforms such as opensea.io or nonfungible.com serve as decentralized estate agents in the digital domain. They allow sellers to list their properties and prices and buyers to negotiate.
Is it safe to buy metaverse land?
This is a big question, especially if you’re thinking of investing a lot. As with investing in cryptocurrencies or NFTs, buying virtual land can be a risky investment. The market is not regulated at all. If something goes wrong, such as a seller becoming a con artist or disappearing with your money, there are no established channels to seek restitution. You may end up on your own.
Even if you don’t get ripped off there are technical considerations which can increase your risk. Transactions in cryptocurrency and NFTs can be stored securely and you shouldn’t forget your password.
As long as you remember your password, there is little risk that anyone can steal your virtual property or breach your agreements to rent. Future technology, such as quantum computing, could make cryptographic security measures obsolete. While this may not present a problem right now, it could become a concern if you’re considering large-scale long-term investments.
The issue of scarcity is another consideration. The value of real-world land has increased steadily due to its finite resources and growing interest from people who want it. The amount of land that is available in the virtual world is virtually unlimited. If all the land plots on a platform have been sold but there is still demand, the developer can create as many plots as they need. Although the big platforms have set limits on how much land they can sell, there is no guarantee that this will continue.
What’s the future for investing in metaverse real property?
This will all depend on the future evolution of the metaverse. It is clear that some large and powerful organizations, such as Facebook (now called Meta) and Microsoft, are betting big on the metaverse being the “next generation of the internet. If this is the case, and the metaverse continues to be as valuable to society and business over the next 20 year as the internet has been over the past 20 years, then digital real estate will likely become an even more useful and exciting asset. We love the opportunities digital offers us to create new products and brands, and we also love the ability to reach out to influencers and businesses. The metaverse could be the next big thing, even more immersive than social media and web. This will likely lead to a bright future for digital land and the real estate market.