Real estate in the metaverse is already a huge industry. Major companies like JP Morgan, PwC, HSBC, and Samsung, as well as celebrities like Snoop Dog, have already invested in virtual pieces of land that they intend to use for a range of projects. At least on paper, initial investors have already garnered big gains. The average price of the smallest plot of land available for auction was less than $1,000 less than a year ago on the Sandbox or Decentraland, two of the biggest metaverse platforms. It is currently worth around $13,000.
So, how to buy land in the metaverse? Read on to learn more.
Why buy land in metaverse?
There are 2 reasons why you should buy land in the metavers. You should always choose the first option because it's the safest, including when building a house or a place of business. In the early days of the web, before everyone switched to social media, it's similar to owning a personal website. Individuals will utilise their metaverse "homes" as a platform to showcase their personalities online or to store their collections of one-of-a-kind digital collectibles. This is possibly the less risky argument for wanting to acquire metaverse land because it's likely that you'll obtain what you want from your transaction.
The second motivation is as an investment, and this is where things could become a little dicey as there is obviously no guarantee that its value would increase like with any investment. We certainly seem to be in the middle of a gold rush, since the average cost of metaverse real estate has surged by a factor of ten over the past year. Many people are buying digital land right now because they simply think that as more people get interested, its value will rise. Since a robust rental market is emerging, more people are purchasing properties to rent them out.
How do I buy land in metaverse?
Cryptocurrencies are typically used to purchase land in the metaverse. Ethereum is a common option, as is SAND and MANA (connected to the community-based Decentraland platform). Therefore, obtaining these is typically the first step.
Due to their well-established network and other well-known owners and renters, including the celebrities and companies listed above, these two platforms are currently the most popular when it comes to holding online land and property. On either of these platforms, land can be purchased straight from the platforms.
The second item you'll need is a wallet that can hold NFTs, which are used to record sales and holding of metaverse land. Two of the most well-known are Metamask and Binance.
Similar to real-world real estate, there is a vibrant third-party resellers' market in addition to purchasing directly from platforms. In the digital world, websites like opensea.io and nonfungible.com serve as decentralised estate agents by letting sellers post their properties and pricing and purchasers haggle.
Is it safe to buy land in metaverse?
This is likely the most important query, especially if you are considering making a significant financial commitment. Investing in virtual property is undoubtedly a high-risk endeavour, just like investing in cryptocurrencies and NFTs. The market is first and foremost entirely unregulated, which means that if anything goes wrong, for example, a seller turns out to be a fraud and vanishes with your money, the avenues for pursuing compensation are underdeveloped, and you can find yourself on your own.
Even if you don't get taken advantage of, there are technological factors that could add an additional degree of risk. Since transactions are made using cryptocurrencies and NFTs, you need to be sure that you can store them securely and won't lose your password or other authentication method.
Overall, the chance of someone being able to steal your digital real estate or refuse to pay rent is now quite low because everything is protected on blockchains with smart contracts and completely encrypted.
There are worries that quantum computing and other emerging technologies may make today's cryptographic security techniques obsolete. This might not be a concern right now, but it's something to consider if you're considering making sizable, long-term investments.
The problem of scarcity is one last thing to think about. Because it is a limited resource and there are an increasing number of people who are interested in possessing it, real estate has steadily climbed in value.
The amount of area that is accessible in the virtual world is almost limitless. There is essentially nothing stopping the developer from building as many additional virtual plots of land as they require if all of the available ones on a platform are sold out but there is still a demand from customers. There is currently "artificial scarcity" enforced by the big platforms' constraints on the quantity of land, but this isn't a given.
This will ultimately rely on how the metaverse develops in the long run. Undoubtedly, a number of extremely significant and powerful companies, like Microsoft, Nvidia, and Facebook (now Meta), are placing significant bets that this is effectively the "next generation" of the internet. Virtual real estate is likely to become an increasingly interesting and practical asset if that turns out to be the reality and the metaverse ends up being as significant to business and society over the next 2 decades as the internet has been over the last 20 years.
We clearly adore the chance that digital technology offers us to grow audiences and develop innovative new products and services, and the metaverse may be the next big thing since it is even more immersive and time-consuming than the web and social networking sites that came before it. This suggests that the market for virtual land and real estate will certainly have a bright future.
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