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What Should You Know Before Entering Metaverse Real Estate?

What Should You Know Before Entering Metaverse Real Estate

Digital assets like music, art, clothing, and even real estate may directly be purchased and sold on both of these websites.

The idea of valuing digital assets is new for most of us. How could we possibly employ non-tangible real estate in our lives? They’ll need locations to visit in the Metaverse in the same way that avatars require things to wear. When it comes to this, digital real estate comes in handy.

What is Metaverse?

Users are linked in every area of their life through the Metaverse, an online, 3D, virtual realm. Using a single web browser, users would view various websites on several platforms.

However, although the metaverse concept was once a fantasy, it now seems to be a reality in the future because of the crypto trading course. 

In the Metaverse, each user will control a character or avatar using augmented reality. For example, you might use an Oculus VR headset to have a mixed reality conference in your virtual workplace, then relax and play a blockchain-based game to unwind after work.

Some of the Metaverse’s features may already be found in virtual video game environments. Many aspects of our lives are brought together in virtual environments like towns. These aren’t the same as the Metaverse, but they’re close enough. The Metaverse has not yet been established.

In addition to enabling games or social media, the Metaverse will include economics, digital identities, decentralized government, and other uses. Today, user-created and owned products and currencies assist in building a single, unified metaverse. Blockchain can fuel this new technology because of all of these properties.

What is Real estate in Metaverse?

Virtual land or property With NFT, we’ll never look at digital assets the same way again. Every facet of life is moving to the virtual realm as technology progresses hand in hand with civilization. Work, school, and conference activities gradually shift into the digital world. Thanks to modern technology, using a tablet, smartphone, or computer, anybody may easily accomplish their tasks. The virtual real estate NFT frenzy, on the other hand, has come as a complete shock to the system.

NFTs, or non-fungible tokens, have been around for a while now. You’ve also heard about how NFTs are expected to impact the digital art scene by the year 2021 significantly. You may have never heard of blockchain real estate, which can only be accessed online.

Virtual real estate NFTs may also be linked to real-world structures. These virtual structures often influence the design and development of real-world properties.

In 2020, an online auction sold digital artwork for more than USD 500,000.00. The sale of the first NFT digital home was a watershed event in the development of NFT technology. The virtual real estate NFT frenzy began with this deal.

A block of property on the well-known Decentraland was sold for approximately $300,000, according to NFT monitoring site NonFungible. Another popular game, Somnium Space, claims to have sold a plot for more than USD 500,000. People may interact with one another, attend events, and do other activities they would ordinarily do in the real world in these digital environments (also known as “metaverses”).

For example, many forms of metaverses appeal to different people. Shopping malls and museums, for example, may be found in certain metaverse crypto. There is a lot of traffic and a large audience on these digital landscapes.

Difference Between Virtual And Physical Real Estate

When it comes to physical features like immobility and uniqueness and economic ones like scarcity and location, real estate in the Metaverse may be compared nearly precisely to that in the actual world. Despite the Metaverse’s resemblance to the virtual world, there are plenty of differences as well.

It’s crucial to keep these variations in mind when purchasing metaverse cryptocurrency or to plan a metaverse venture. As an investor, you must understand the primary distinctions between the two, from their purpose and limits to their creation cost.

A place to eat, sleep, breathe, and live is included in more mundane tasks like washing and drying clothes. Even if you don’t own any real estate, it’s challenging to get by without it. While shopping, relaxation, and social activities might all be enjoyable, they aren’t vital for survival in the Metaverse.

  • Data in the Metaverse is scarce

There are certain global areas where real estate records may be traced back thousands of years. On the other hand, before 2003 (the year Second Life was founded), the Metaverse didn’t exist in any form. That implies there isn’t a lot of data to work with right now, so it’s all reasonably speculative at this point.

  • A centralized authority does not exist to keep track of your ownership

Despite the fact that your purchase of an NFT is recorded on the blockchain, no one other than you has any way of knowing who owns it. You may keep a record of your property ownership in a digital wallet. Since there is no central authority to retain a master list of sorts, some users have made the expensive error of forgetting their wallet passwords — and all of their NFT assets.

  • Lot sizes are restricted. However, platform sizes are not

While each metaverse platform has a fixed number of lots, there is the possibility for infinite media. Users may not assume your platform will be hot forever and prefer to go elsewhere, even though scarcity generally applies to all platforms. Rather than thinking of the Metaverse as a single world with a finite quantity of land, it’s vital to conceive it as a collection of planets between which humans may travel.

  • A metaverse platform may shut down at any time

Because this is very important, pay attention. If a platform fails due to a lack of financing or interest, metaverse property may just disappear.

  • A limited set of rules governs metaverse attributes

It’s impossible to design or zoning constructions in the Metaverse, so you can only build what you can conceive and what would fit on your lot. It’s also wonderful that there are no taxes at the moment.

Event spaces and even businesses can be more efficiently designed without worrying about things like storage, restrooms, or additional square footage for social distance since there is no such thing as a metaverse fire code or public health threat.

  • The cost of building is really inexpensive

Metaverse blockchain construction costs are far lower than they would be in the real world since much of the money is spent on design rather than on actual materials (which may be found for free on any platform or at a very cheap cost if imported). Furthermore, the land is less expensive in contrast, and no infrastructure, such as water lines or sewage, is required.

  • There is no geographical boundary to the Metaverse

There are no geographical limitations when it comes to seeing events like the virtual New Year’s Eve ball drop in New York City, which took place last week. To make events more accessible, this might also benefit localized companies since they don’t have to spend money expanding their global reach.

Advantages Of Metaverse Real Estate

Our recommendation to learn crypto trading and invest in metaverse real estate is a serious one. 

  • Well-known brand names are invading the Metaverse

Big-name businesses such as Nike (NYSE: NKE) are making a foray into the Metaverse (no pun intended). RTFKT, a manufacturer of NFT footwear, was recently purchased by the corporation, which was reported just a few weeks ago. 

To ensure that every avatar in the Metaverse has Nike shoes on, the company is going big and fast with this push. Rather than watching to see what other firms are doing, it’s figuring out how to take advantage of the technology driving these platforms.

Some items sold for as much as $4,100 in Robux when resold, showing that there is a demand for branded goods on both the primary and secondary markets. Prices ranged from $1.20 to $9 per item.

  • The Metaverse is being flooded with millions of dollars from developers

It was only a week ago that Tokens.com had broken the previous record by acquiring a $2.5 million piece of property in Decentraland with a $4.3 million land acquisition from Republic Realm. That’s a lot of spending money.

With this in mind, we can’t help but wonder whether this is only a PR ploy or if these corporations are serious about creating locations like virtual malls and other rentable buildings (for example, where Nike may put up shop). They’ve got business plans to show it, and they’re as serious as cancer.

  • This isn’t a new phenomenon in the Metaverse

They may be relatively new, but they’re far from the first instances of individuals generating money in virtual real estate by investing in virtual properties. Ailin Graef, the first Second Life billionaire, was profiled by Bloomberg in 2006. With a virtual world wealth built up over two years in Second Life, she invests extensively in technological companies and is a significant player in the Second Life community.

Disadvantages of Metaverse Real Estate

With so much potential for those who time their entry just right, the metaverse crypto coins is unquestionably the most exciting thing to happen to investors in recent memory. There’s no shortage of opportunities in the real estate investing world, from the virtual equivalent of short-term rentals to long-term holdings to commercial leases.

The Metaverse, however, is not a risk-free venture, nor is it free of issues. Despite the many advantages of the Metaverse, you should be aware of certain potential drawbacks before jumping in headfirst.

  • The market for metaverse qualities is currently small

Keeping this in mind while dealing with metaverse real estate may be the most crucial thing to remember. It’s a specialized market, but one with a devoted following. You have to accept that your market is tiny and that it may stay that way, much like developers who construct only mega-mansions. 

According to NonFungible.com, in the 365 days before December 21, 2021, metaverse property transactions totaled 128,902 in total (this also includes avatars). Virtual real estate blocks are still being sold for $1 million, as well as a growing number of high-profile businesses, so it’s not a dead market.

  • You’ll lose your money if a metaverse platform goes under

Anyone who has invested in anything knows that there is always a chance that their money will not be returned if the venture fails from their metaverse wallet. 

Members may have a say in whether or not the platform closes, but the person in charge of paying the bills may turn off the platform’s power if there isn’t enough money to cover the costs. Before you panic, keep in mind that Second Life, one of the original metaverse systems, has been running since 2003.

  • The Metaverse isn’t really good for the real world for a variety of reasons

Walking about in the Metaverse, it’s easy to forget that it’s a computer and electricity-powered recreation of the real world. In contrast to metaverse platforms, the cryptocurrency security that fuels them isn’t doing nearly as much to reduce their environmental footprint.

It is estimated that Bitcoin mining uses 91 tera-watt hours of energy annually, which is more than Finland’s whole population of 5.5 million people and only accounts for 0.5% of the total electricity used globally. 

But you can assist by purchasing carbon offsets for your metaverse investments, or you can use your real-world voting power and voice to fight for more ecologically friendly methods to create energy, which will help reduce the effect of metaverse effects on the physical world as well. 

Should You Really Invest In Them?

In the early stages of a platform’s development, it’s impossible to tell if it will be a success or a failure. To be sure, picking the next big platform may bring in a nice profit; yet, if you don’t keep an eye on things, you might quickly lose all your money.

Don’t let the popularity of established platforms frighten you away; there is still a lot of money to be earned there. In areas like Decentraland or The Sandbox, you won’t see returns of 1,000%, but you may still see constant returns, similar to what you’d earn in the real estate market in the real world.

To Sum It Up

Executives in technology innovation must recognize, study, and follow emerging technologies to enable business leaders to build new products, alter their businesses, or manage any hazards. Taking into account the metaverse crypto coin‘s potential influence on strategic corporate innovation is a must.

People will be able to duplicate or improve their physical activities via Metaverse. Alternatively, the actual world might be transformed into a virtual one or vice versa. Despite the fact that the Metaverse’s purpose is to merge many of these activities, there are now several Metaverses with a restricted set of capabilities.

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Disclosing The Secrets About Metaverse Real Estate

Disclosing The Secrets About Metaverse Real Estate

“Metaverse users sold Non-existent digital land of 100’s of millions of dollars in a week.”

“Digital, real estate prices, surpass even those of the most affluent places of the world.”

You might have come across news headlines like this in the last few months. Even more, after Facebook changed its name to Meta. Now, you must be wondering what the hell is a metaverse?

Why is metaverse real estate sold at such an enormous price than most famous places on the planet?

Trust me. I was even wondering the same few months back. So, in this article, you will know more about metaverse real estate and its future.

Metaverse and its origin

Metaverse is a virtual reality space shared over the internet. You can access them from any part of the world and interact with them over the metaverse. The internet brought people from all over the world together; the metaverse will bring us closer. Many deem the Metaverse the successor of mobile internet, and now we know why.

Metaverse is not a new concept, and a 1992 science fiction novel by Neal Stephenson put the idea forward. Since then, most of us have interacted with the concept of Metaverse, be it in games like Minecraft, GTA V: online or through movies like Ready player one and The Matrix.

Within Metaverse, we can roam around, meet new people, explore new places, go to a bar, do the shopping, and even dress up as our favorite avatars, all while sitting at our desks. 

Metaverse is still an evolving concept and truth to be told. We are far from understanding its full potential as of now. But this has not stopped big corporations, like Facebook, from joining the Metaverse. 

There are multiple iterations of Metaverse, each having its metaverse cryptocurrency. All Metaverse can coexist like different countries, where users can jump from one country to the next and experience their unique benefits.

The most prominent one is Decentraland, built on the Ethereum blockchain, where you can buy land and trade NFTs using its metaverse crypto coins, called MANA. Users can hold the MANA like a stock to increase its value or purchase Avatars and other experiences on the metaverse. As of writing this article, each land packet is worth millions of MANA.

How does a land obtain value if it is existing virtually?

The Internet can be infinite, but a metaverse is not. There are several virtual 3D worlds but of defined sizes. Thus the supply of real estate and land is limited. However, more can be added later.

The underlying concept of limited supply is similar to Blockchain. Say 20 million bitcoins are issued for distribution. Once the amount is accomplished, there will be no extra addition. Hence due to its supply scarcity, it continues to drive its value.

Decentraland, built on top of a metaverse blockchain, has only 90,000 plots of land, with each plot measuring 2704 sq. ft. They auctioned all the properties between 2017-2018. But increased interest in the metaverse has opened up a new secondary auction for the plots of land and has pushed the prices to new highs.

What is driving the Metaverse real estate price?

Similarly, all metaverses have seen a jump in the plots price tags and a big jump in the daily active users. So, let us see the seven factors that are driving up the Metaverse Real estate prices.

The prices of plots work on the concept of rarity. You can increase the number of metaverses, but the number of plots of each metaverse will remain the same. The idea is like an NFT or Bitcoin. Unlike regular currency, there can be only 21 million bitcoins that we can mine. So, this scarcity in numbers helps in increasing its value.

The prices of our physical real estate depend on the location. The same goes for virtual reality plots. Big corporations are jumping to build malls, tourist attractions, concerts, and other social gathering venues like the shopping district. The gathering of many virtual users increases the traffic of the places and helps drive the price even more.

For example, I can buy a plot of land and build a shopping mall to display my NFT artworks. It will increase my plot’s traffic and improve its overall value.

As humans, we all have a significant Fear Of Missing Out. News of each land sale fetching millions of dollars has made people jump on the bandwagon. Undoubtedly, it also increased the secondary market value of the plots in the virtual reality space as first buyers are selling their plots more than their initial price.

With the emergence of Covid-19 and the restrictions, people worldwide are having virtual interactions. Metaverse allows us to have real-life interactions with others in real-time using technologies like VR headsets and 5G connections. We can hang out with our friends in our NFT avatars, shop, and even attend music concerts. 

  • No Regulations

When you buy a plot of land as NFT, you have the right to build any property, rent it, give and deny access or even charge an entrance fee. You can even sell the land without even going to the land office. Just list the ground in a marketplace, and you can digitally swap it with cryptocurrency, which the blockchain will deposit in your metaverse wallet.


You can even build a skyscraper in your land without going through a land regulation office, and none of the physical limitations apply to it. The possibility is endless of what you can do on a metaverse.

  • Investment by big corporations

Recently multiple big corporations are jumping into the metaverse. Atari, a video game company, partnered with Decentraland to open its first virtual casino. Republic Realm, a metaverse real estate investment firm, bought the largest-ever land purchase on the metaverse for nearly $1 million to build a virtual mall. 

Recently, Travis Scott’s concert was hosted on the virtual reality game Fortnite and saw 12 million players attending it. Since then, there have been such concerts and events in the metaverse. All of these are creating hype around land prices.

  • Immersive experience

Metaverse is best experienced when we combine it with commerce. Companies can set up virtual stores for their brands, and people can interact and have an immersive 3D experience of the product before purchasing. Without a doubt, it will eliminate the hesitation people feel while buying products online.

Industry leaders like Facebook, Apple, and even Microsoft have joined the race to be a part of the metaverse. The prices of metaverse real estate will keep rising as long as people use it for the creative interaction, purchase, and sale of NFTs.

How to get a piece of the pie?

Imagine you bought a piece of land in the 1900s in Times square. Now guess the current market price of that piece of land. The price is invaluable. The same will happen to the plots of land on the metaverse.



Before buying a piece of land follow these steps:-

  • First, you need to select the metaverse. 
  • Go through the underlining blockchain technology and the market caps of the metaverse crypto. 
  • From here, the task is simple. You can use real-life currency to buy into the metaverse crypto coin for the blockchain and then go through the auctions to buy your first plot of digital land.
  • These plots of land are like a combination of currency and stocks. You can exchange them for the metaverse crypto coin or hold on to them to increase their value.

Can metaverse real estate be utilized for some other purposes?

Transferring the ownership of assets has become a safe and secure process due to the invention of blockchain technology. Here is what owners of virtual real estate can do with it:

  • Construct malls, restaurants, etc – either yourself or by leasing virtual land developers
  • Organize professional or cultural gatherings
  • Run companies or rent the estate to other businesses
  • Mortgage land for an alternative source of revenue
  • Re-sell the territory for a profit
  • Design adventure parks and go on journeys.

Conclusion

By now, the clues are evident that the metaverse is here to stay, and it is the next big thing after the mobile internet. The community controls the metaverse and gets incentives to participate in the decision-making process. Clearly, it leaves the metaverse free from the clutches of big corporations and governments.

But all of this comes the massive energy consumption, as one transaction over Ethereum can use the energy of five US household uses in a day. There is the risk of hacking and money laundering, which can be solved by using cryptocurrency security. As the metaverse is evolving every day, we hope to see all of these concerns will be looked after as it will encourage more and more people to be a part of it.

If you want to learn cryptocurrency trading, you should look into our crypto trading course to learn more about being successful in blockchain technology.

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