What’s Behind The Digital Craze Conquering The Globe?
Science fiction is no longer… well… fiction. The metaverse
, once a concept popularized by sci-fi authors in the ‘90s, has become a global point of interest. For those out of the loop, the metaverse is an online world where users can operate 3D model characters and interact with digital environments. Amid booming relevance, companies such as Meta and Microsoft have invested their resources into building synthetic paradises.
The metaverse has become a haven for intrepid digital adventurers. Entire future-driven communities have sprung up in their virtual enclaves. Business deals have been sealed online, and treasured digital artworks in the form of NFTs (Non-Fungible Tokens)
have been sold for hundreds of thousands of dollars. The other major market booming in the metaverse? Surprisingly, real estate.
In a computer-generated metaverse called Decentraland
, parcels of virtual land have sold for up to $2.5 million – an unprecedented selling price for metaverse real estate projects. This guide will point out the pros and cons of purchasing metaverse real estate for sale. We will also discuss the effects the metaverse real estate market has had on brick-and-mortar homes (spoiler alert: Not much just yet).
Why You Should Go All Chips In
Do you want to be ahead of the curve? By purchasing your very own tract of metaverse property, you could be making a sound investment in the future. Imagine selling your asset a few years down the line for hundreds of thousands of dollars, perhaps even millions?
Proof of profitable long-term digital investments exists. Crypto, once a fringe interest in the early 2010s, has seen vendors reselling their digital cash for highly inflated values. The digital artwork market is the most recent example of profitable asset selling, as purchasers resell entire collections to prospectors who want to get in on the craze.
The one problem facing metaverse property is the fact that – in a digital world – scarcity doesn’t exist. In such a case, synthetic properties are worth nothing.
Some companies have already tried to solve this head-scratcher. Metaverse conglomerates such as Decentraland currently only offer 90,000 parcels of land to its users. Sandbox
, the largest metaverse community, also offers a minimum number of plots. By keeping property scarce, individuals are more willing to invest their hard-earned cash into a potential long-term profit maker.
Also check out another project in the metaverse that you may be looking at is illuvium
Then, there is the communal and creative aspect. Owning a plot of land in the metaverse allows you to display your imagination on a digital canvas. Becoming part of future communities early on also allows you to get (and stay) ahead of the pack. So, what do you say? Are you ready to start metaverse real estate investing? Such a thrilling opportunity might not swing by again. BUT…
…Here’s Why You Should Probably Think Twice
Here is why you might not want to invest your funds into digital real estate – or even the metaverse itself. Increasingly, observers have pointed with apprehension to Facebook’s position in the digital market. Facebook – recently rebranded as Meta – has made it clear that they want to be part of the metaverse future. The list of complaints against the social media multinational runs endlessly.
International privacy laws are routinely broken, and the company has faced multiple lawsuits as a result. The Cambridge Analytica scandal, where private Facebook data was harvested by a consulting firm for political advertising, is perhaps the most prominent of Meta's various scandals. Imagine your data, including embarrassing search histories you would prefer no one saw, gifted on a silver platter to other firms. With a corporate titan entering the metaverse real estate market, users should be wary of what it could mean for their data privacy.
Speaking of commercial giants, what would the influx of companies such as Microsoft and Amazon mean for the community? Cryptocurrency and NFT communities have always prided themselves on being decentralized and monopoly free. In essence, a fair playing field is provided for all.
Microsoft, Amazon, and Meta don’t view the metaverse in that way. They epitomize the stereotypical view of an insatiable business owner, sitting on a mountain of cash, smoking a cigar, adjusting their monocle, and twirling their mustache. If you're thinking of the Monopoly man, you have the right image in your noggin. With this information, you might want to think twice about metaverse real estate investing.
What Metaverse Real Estate Projects Mean For Real property, And What the Big Differences Are
So far, the virtual real estate market has had no effect on “real life” real estate. That is unless we migrate our collective consciousness into the digital world, which as of today is unlikely to happen.
Metaverse real estate is different from "brick and mortar real estate" in a few ways. For one, homes and properties in the metaverse fit onto a hard drive, while your deluxe two-story condo probably won’t.
What about scarcity? In a digital world, homes and properties can be generated with a simple piece of code, right? Correct. Trying to decide whether properties in the synthetic realm should be scarce has been a contentious topic in the community. Some view the metaverse as a virtual utopia, where characters can live and interact freely, whilst others view it as a pay-to-play world.
Some companies, such as Decentraland, have made a select number of properties available for purchase, creating scarcity and, as a result, value. Other metaverses have opened up their worlds to everyone – so the global community can get in on the fun.
To Wrap It All Up…
…Which Path Do We Chart In The Metaverse?
Very soon, we might all be living in digital homes, throwing virtual frisbees to our literally-imaginary pets. The future is here. What do we make of it?
Hopefully, this full guide has painted a vivid picture of the metaverse real estate market. There are reasons why you might want to put your cash forward and buy a virtual plot. At the same time, however, you might want to keep your change in your pockets before purchasing metaverse real estate for sale.
As a daring adventurer in the internet age – the choice is yours. If you ask us, purchase a real home before you delve into the endless world of the metaverse.