Ever since the Metaverse has become live, the volume of transactions has ramped up to great heights.
A plot in the metaverse sold for a whopping $4.3 million in what was the biggest real estate deal in this virtual universe.
The transaction took place at the largest metaverse real estate platform, The Sandbox.
Republic Realm, the company which made this investment is developing 100 islands, called Fantasy Islands, with their own villas and a related market of boats and jet skis.
On the first day itself, ninety of the islands got sold for $15,000 each. Some of them are now listed for resale for more than $100,000.
Metaverse is a virtual immersive 3D world where people can interact with each other in real-time and make transactions to buy/sell products including real estate.
NFT virtual land is a digital land area on a metaverse platform that is open to being sold, bought and owned by anyone.
A report from BrandEssence Market Research found that the metaverse real estate market is expected to grow at a compound annual rate of 31% a year from 2022 to 2028.
Here’s what you need to know to understand why so many investors are blindly pooling in their money to buy a virtual estate.
It’s true that the real estate in the metaverse is not really real. However, it’s still attracting investors across the globe because of the amount of profit it can reap for you,
You can use virtual land for advertising of your product, socializing with people, play games and work, among other many things.
Furthermore, input costs are low, returns are high. Tenants are easier to find and you can earn income while your property value appreciates.
Virtual land can certainly not be bought with Rupees. You will be required to have a digital wallet that will store your cryptocurrency. It’s a platform from where you receive and float your money from.
You can buy a virtual piece of land by making digital payments in form of cryptocurrency.
The ownership of a piece of land in the metaverse is represented by non-fungible tokens (NFTs). Each NFT is a unique cryptographic asset, non-interchangeable, and thus easily proves digital ownership.
The technology behind NFTs is blockchain with unique identification codes and metadata that distinguish them from each other.
This distinction of each NFT makes it an ideal vehicle to digitally represent physical assets like real estate and artwork.
The first lesson of economics is scarcity. Limited existence of a good triggers a sense of urgency in people to buy it. To ensure that the real estate here doesn’t lose its value, the supply is limited.
Decentralland, for example, is made up of 90,000 pieces or “parcels” of land, each around 50 feet by 50 feet.
Be it any investment – it involves both risks and rewards. Virtual land investment is no different.
There are factors on which the future of your investment depends. In metaverse, it’s the location.
Someone recently paid $450,000 to be Snoop Dog’s neighbour and become a member of the Snoopverse.
The areas which are more into the limelight and gather huge crowd would be more valuable and would appreciate at a higher rate.
Metaverse is taking over! Investors are piling millions and millions of dollars to get a piece of this cake. It is going to drive the future economy of the world.
Those who are in denial should remember that people once had doubts of the potential of the internet. Even the smartest of brains had ditched the idea of internet becoming the new driving force. People had doubts about the potential significance of the internet, and then social media. Look at it now. You’re looking at it now.
It’s not about what you believe in anymore. It’s about what future believes in.
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