The buzz word in the world of virtual reality and cryptocurrency is Metaverse as it potentially opens up another avenue of exploration, exploitation and e-commerce.
These so-called ‘virtual lands’ are envisioned as spaces where anyone can go and hang out with their friends via a monitor or through their virtual reality headset.
Virtual lands are literally digital plots of land existing in a 3D online space – one in which users can log into and experience an immersive world through their online avatars via a monitor or VR headset.
Virtual lands have various pros and cons depending on a user’s Metaverse of choice.
Coin Telegraph explains how essentially, we’ll all become invested in a real-life version of The Sims as enthusiasts expect Metaverse real estate properties to support virtual houses, where users can build whatever they’d like – similar to the popular game The Sims.
With Metaverse properties, users are expected to decorate their homes to create their ultimate hang out, inviting over friends from anywhere in the world – a bit like next-gen Animal Crossing on Nintendo Switch.
Event brands will also be able to utilise virtual land to organise house concerts, or product release events, which they claim are especially vital during the Covid-19 pandemic.
A virtual concert has no population limit and enables people to gather and enjoy their favourite artists without worrying about space or safety.
Investors are betting on a digital future where everyone will own a virtual plot of land and are spending millions on virtual lands because they believe the future is digital.
These companies expect people to flock to virtual properties by the millions and invest in virtual land for sale while expecting a potential return on investment.
This method is very similar to real estate investments in the real world, where investors buy up land in developing areas only to sell it back later when the value has increased.
According to a report by crypto asset manager Grayscale, digital asset inventories are likely to reach $1 trillion (£750billion) shortly – which makes it easier to understand why investors want to hoard pieces of virtual land similar to stocks and traditional real estate.
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How does the value of virtual land increase?
The value proposition of virtual land works similarly to the real world. High-value properties are often near shops and activities, in which people will pay higher rent to live by.
Of course, the value of virtual land only increases if areas develop and people get involved in the Metaverse. This prospect is why there are many skeptics of such an investment – the huge investments into virtual land is all a risk, but it’s not an unfounded one.
After all, celebrities and stars are buying virtual land for all sorts of reasons.
Some celebrities, like Snoop Dogg, are buying land to get ahead of the trend or because they think it’s fun. Others, such as the Winklevoss Twins, invest in land for educational purposes – to build exhibits that teach others about crypto and the Metaverse as a whole.
From there, fans have the opportunity to buy metaverse properties next to their favourite stars and will pay top-whack to do so. Those interested in virtual real estate investing are betting on the possibility of their land becoming more valuable over time, hence their bullishness toward virtual land as a whole.
If you’re wondering why some believe Metaverse is the biggest investment opportunity, appreciation in land value is one of them.
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How to buy virtual real estate in the Metaverse?
Like the real world, investing in virtual real estate requires lots of research and speculation.
Learning how to buy virtual real estate in the Metaverse is pretty simple. The process of buying virtual real estate starts by examining the various Metaverse projects out there and deciding which is best for you.
Most Metaverse projects exist on the Ethereum blockchain, so it’s often best to acquire an Ethereum-powered wallet to start.
Much like in the real world, users can make an offer to buy a virtual property on these NFT marketplaces. Whichever offer gets accepted is up to the seller, of course. Still, once an offer is accepted, the NFT will automatically transfer from the seller’s wallet to the buyer via a smart contract, representing a shift in digital ownership.
While examining land in a project like Decentraland, you can use its in-game map to realise the value of each area.
Some more valuable Decentraland properties are next to plazas and similarly populated regions, while plots away from these spaces are generally less valuable.
Find out more about Metaverse real estate agents on the Coin Telegraph website here.
WARNING: Nothing in this article should be read or understood to be financial and/or investment advice. Readers should take their own financial advice from a suitably qualified independent financial adviser before making any investment decisions.
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