Because of decentralized technologies, real estate may be forever revolutionized. As the Metaverse expands, so will digital real estate.
When Facebook rebranded to Meta in October 2021, you’ve probably heard the term a lot. In case you haven’t, you will discover why more about this section and why you should keep an eye on Metaverse real state assets. Now, let’s see some of the biggest companies that decided to enter the metaverse sector:
Why Companies like Facebook, Nike, and Microsoft Decide to Enter the Metaverse?
Apart from Facebook, now Meta, firms like Nike and Microsoft have also indicated plans to enter this industry which is a vision of a connected 3D virtual environment.
Therefore, real and digital worlds are combined via the use of technologies such as virtual reality (VR) and augmented reality (AR). This immersive environment will be available via VR headsets, AR glasses, and smartphone apps.
The metaverse is the next evolution of social connection. It's a collective project that will be created by people all over the world, and open to everyone. You’ll be able to socialize, learn, collaborate and play in ways that go beyond what’s possible today. pic.twitter.com/655yFRm8yZ
— Meta (@Meta) October 28, 2021
Therefore, users will interact with one another as digital avatars, explore new areas, and create content. The goal of the metaverse is to evolve into a shared virtual world where people can socialize, play, work, and learn.
Real State Parcels will be the Next Big Thing in Metaverse
The metaverse is designed to include everything that exists virtually, from digital art to virtual worlds. However, few people are talking about the profitable business that Metaverse real state parcels will be for these metaverses. They can be bought as just one type of investment, usually represented as NFTs. You will find them in the following metaverses:
- The Sandbox
- Nifty Island
- Wilder World
A patch of virtual real estate sold for a record $2.4 million worth of cryptocurrency. The plot exists in the online environment 'Decentraland,' where users can buy land, visit buildings and meet people as avatars https://t.co/NoDHHhVBrY pic.twitter.com/V8B9KWJOEq
— Reuters (@Reuters) November 24, 2021
When you buy virtual land, you can consider it similar to getting a domain name or securing a nice social media username. The email was our Web 1 home, and social profiles—such as a Facebook or Instagram page—were our Web 2 home bases.
Therefore, personal property, in the form of virtual real estate, maybe the Web 3 version. The difference is that the Web 3 property is designed to be something that you, the end-user, can build yourself.
What Caused the Virtual Real State Price Explosion?
Virtual lands, as we’ve seen, take the same approach as the real world. Because their supply is restricted, their value tends to rise. The Sandbox has a limited supply of 166,464 lots, each measuring 96 × 96m2. In 2021, the SAND token, its native token, increased by approximately 14,000 percent, trading at $5.15.
18,000+ Partners and Land Owners in #TheSandbox ✅
Tag who you'd like to see join the graphic below 👇 pic.twitter.com/YsTHFqZ7Fw
— The Sandbox (@TheSandboxGame) February 13, 2022
Similarly, the Decentraland metaverse has 90,601 pieces of land. Only about 44,000 of these pieces are available for private purchases and transactions. Each Decentraland lot is a 16 x 16m2 non-fungible token (NFT). MANA, the platform’s native cryptocurrency, is used to buy the land. In 2021, the price of MANA has increased by more than 4,300%, reaching $3.41.
More About Real Estate Lands in Metaverses
Virtual land prices, which were roughly $20 per square foot in 2017, have been constantly growing over the years, with “the 2021 NFT wave” bringing in a huge increase. In the metaverse, the land now sells for between $6,000 and $100,000.
The virtual land prices grow because virtual worlds will evolve into the metaverse. This has the potential to significantly change how people connect with the digital world, combining it with the real world.
Moreover, the possibility for profit from virtual real estate increases the value of virtual land. There are three factors of appreciation:
- Scarcity – Users buy virtual land plots, which are restricted in number (value due to scarcity)
- Utility – How it will be used is determined by the limited number of landowners. Or if it will just be a one-time investment (valuation for utility/valuation for scarcity)
- Consumption – How virtual-world users will consume content created by landowners (valuation through consumption)
What is the Future of Metaverse Real Estate Looks Like?
Aside from financial incentives, you may be wondering what firms and individuals will do with their virtual land.
The Metaverse Group, for example, was purchased in Decentraland’s fashion district. According to the buyer, they will use the space to organize digital fashion events and sell virtual goods for avatars – another area of potential growth in the metaverse.
But what benefits might you get from owning Metaverse real state lands? When you buy a physical property in the real world, you get something tangible – a place to live, or a place to welcome family and friends. Although the virtual property does not give physical shelter, there are some similarities.
You may buy a piece of land to build on. Also, you could choose a pre-built house that you like. You might personalize it with numerous (digital) objects. You may invite visitors and also visit other people’s virtual homes.
This vision is still a long way off. But, if it appears crazy, keep in mind that once upon a time, many dismissed the potential significance of the internet, and then social media. Technologists believe that in the coming years, the metaverse will evolve into a fully functioning economy. It will deliver a synchronous digital experience as interwoven into our lives as email and social networking are now.
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