After Facebook has changed its brand name to Meta, everyone is talking about the Metaverse. It is evident that Meta is a reference to the Metaverse. In case you didn't know, it is a new genre of the digital world. There are limitless possibilities in the Metaverse. People are buying houses, partying, and Paris Hilton even performed as a DJ in a group, in the metaverse space.
Although Facebook did not invent the Metaverse and is not the only player in the field, they have raised a lot of discussion about digital reality. People have wondered how to get in on the action as the Metaverse has grown in popularity, and the current craze is digital real estate.
The idea of digital property or intangible assets is still very new and, to some extent, unbelievable to a lot of us. However, digital real estate can be useful in a lot of ways.
Before diving into investing in Metaverse real estate, here are a few things you should know.
Not long ago, the concept of the Metaverse seemed like fiction. But it is slowly turning into a reality due to crypto trading. In simple terms, the Metaverse is an online 3D virtual realm. It connects users in every aspect of their lives, and it can be navigated without any interference from corporations.
As the Metaverse develops, it will influence how we think about the internet. In addition to new digital-native assets, spaces, and experiences, it will emphasize collective ownership, community support, and a decentralized economy.
Metaverse comprises several digital realms inspired by virtual metropolises in three dimensions. These immersive digital experiences are powered by virtual reality, avatars, and artificial intelligence. Currently, there are no clear indications as to whether the current wave of metaverse real estate investment will be the next big thing or just another financial bubble. However, experts predict the Metaverse will become a functioning economy within a few years.
In the Metaverse, real estate investors have a limited choice of digital platforms to buy and sell properties, and each one has its own currency. In addition to Decentraland's MANA token, investors have access to NFTs, such as land parcels, on the platform's marketplace. So, investors who had bitcoin trading experience will have an advantage when buying and selling land in metaverse space. In addition, investors have many options regarding the prospects of using the land. For example, virtual lands can be used as a concert hall, a co-working space, or business meetings.
Virtual real estates are nothing like our physical real estate. Investors need to know the key differences between these two, from their purpose and limitations to the cost of their creation.
Because the Metaverse did not exist before 2003, there isn't much data to work with right now, unlike the real world, where some records go back to 1000 years.
Although your purchase of an NFT is recorded on the blockchain, no one but you knows who owns it. You can keep records in a digital wallet, but you will lose them if you forget the password.
While each metaverse platform has a limited number of lots, infinite media is possible. Users may abandon your platform if they believe it will not remain popular. You should think of the Metaverse as a collection of planets between which humans can travel.
Your metaverse property will vanish if the platform fails due to a lack of funding or interest.
In the Metaverse, you cannot design or zone structures. You can only build what you can imagine and fit on your lot. There are currently no taxes. Fire codes or health threats do not exist here. So, event spaces and businesses can be designed more efficiently without worrying about storage, restrooms, and square footage for social distance.
There are no geographical limitations in the Metaverse. The accessibility of events may benefit local businesses since the cost of expanding their global reach will be reduced.
Like everything else, metaverse real estate comes with its own set of pros and cons. They are listed below.
● Several well-known brands are entering the Metaverse
A lot of popular companies are venturing into the Metaverse. For example, RTFKT, a manufacturer of NFT footwear, was recently purchased by Nike.
● Millions of dollars are being poured into the Metaverse by developers
Tokens.com recently broke the previous record by purchasing a $2.5 million property in Decentraland with a $4.3 million land acquisition from Republic Realm.
● The metaverse qualities market is currently small
Before entering it, you must acknowledge it's a niche market with a small audience and that it will likely remain that way.
● If a metaverse platform fails, you'll lose your money
Even if members have a say as to whether the platform closes, if there isn't enough money to cover the costs, the platform might shut down, and you might lose everything.
● For a variety of reasons, the Metaverse isn't good for the real world
The cryptocurrency security that powers the Metaverse is not helping the environment. Bitcoin mining is estimated to consume 91 terawatt-hours of energy per year.
To wrap it up, you can not predict a platform's success or failure during its early stages. Choosing the next big platform could give you a nice profit, but if you don't keep an eye on things, you could lose everything you have invested. There's still a lot of money to be made on the established platforms. You won't get 1,000 percent returns in places like Decentraland and The Sandbox, but you may receive consistent returns, just like the real world.