Imagine immersing yourself into a virtual world with your friends, family, coworkers, and others while using nothing but your devices. Not long ago, something like this would have been merely classified as futuristic. People accessing multidimensional digital spaces was thought to be the stuff of science fiction and fantasy. Inconceivable.
However, in recent times, reality has caught up with many other once-theoretical developments in technology. Thanks to human intellect, imagination, and extensive effort, many formerly implausible technologies are coming to life. One such technology is the metaverse, and real estate on the metaverse is a current hot topic so let’s understand how it works.
The phrase "digital real estate" may seem absurd to those who are new to the metaverse. Although Metaverse Real Estate isn’t physically present, the blockchain offers secure ownership rights over a piece of (digital) land. Simply put, it is an entity that represents land ownership in a game, community, or other platforms through an NFT.
In traditional real estate, the same area of land could be have vastly different values depending on location, amount of vehical traffic, ease of access, among others. Your metaverse properties work similarly, with more expensive locations having more online “foot traffic,” which could earn major profits through advertising. Some metaverse platforms give you many customization options to design and organize your environment, activities, and experiences. Examples include Netflix's programming on Decentraland and The Snoopverse on The Sandbox.
In 2021, metaverse real estate sales on the four major platforms reached $501 million and were expected to double to $1 billion this year. The value of Sandbox LAND grew by 15,000% in 2021.The average parcel price in major metaverse platforms has increased from $1,265 to $12,684. And to your surprise, the total metaverse real estate investments come from only about 25,000 individual crypto wallets.
Let's delve into the three aspects that most significantly affect the cost of real estate on the metaverse::
1. Utility: Virtual real estate within any metaverse platform, game, or the world has a specific utility. While some offer extensive customizability, others give in-game advantages or stat increases. Your virtual land can fetch a greater price on the open market if it possesses a particularly desirable utility.
2. Platform: The platform on which your land is located determines its utility. There are a few famous ones like Sandbox, Decentraland, Somnium, and Cryptovoxels. In addition, the reputation and brand name of a platform affect how much your NFT land is worth. This is equivalent to the ability of Nike or Adidas to charge far more than a lesser-known brand with a similar level of product quality.
3. Interoperability: Web3 interoperability allows users to access a vast range of available applications over different chains without leaving the decentralized space. It’s critical for users freedom of mobility while maintaining the security of blockchain technology.
4. Speculation: Your Metaverse Real Estate's price can frequently be influenced by the possibility that it will become more valuable in the future. If the entire market agrees with this viewpoint and is optimistic about the price of metaverse land, speculation becomes a significant determinant of price. Like with traditional real estate, speculators take a calculated risk to buy the prices are low and in hope that future developments will make that land increase in price.
The virtual real estate market is still in its nascent stage and does carry inherent risks. However, the quick transition to complete digitalization in almost all businesses has the potential to produce significant returns on investments in metaverse real estate. Investing in the metaverse real-estate can help people build up the potential for value creation by early movers.
Learn all you can about the metaverse before making any financial decisions. Recognize all the dangers and difficulties and balance them against the potential advantages and choose only after careful consideration.
Users from all around the world have become interested in the Bluemoon metaverse because it provides a distinctive and immersive online experience. Follow us on LinkedIn, Instagram, Discord, and Twitter to stay updated with the newest advancements in the Metaverse industry. If you wish to participate in the fully working Virtual Bluemoon Metaverse, join the waitlist here.