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The Metaverse is perhaps one of the most interesting trends to follow in the crypto universe for 2022. Many may view this sector with skepticism, and it was the same with Bitcoin. However, virtual reality is about to reach a whole new level.
As with any innovation in our economy, those who want to take advantage of this opportunity must have money, courage, and foresight. But, if today it seems normal for a business to have its website (and, indeed, the opposite may seem strange), the Metaverse promises to follow a similar evolution.
We see, in fact, a growing number of companies working on projects in the Metaverse. Many entrepreneurs hope that their customers will decide, in the future, to create an avatar in their virtual reality to shop, interact, play games, etc.
Consequently, the virtual real estate market is becoming hotter and hotter. Many of these digital worlds offer the chance to buy land plots, houses, and much more. Owning virtual property appears may be one of the following big things in the blockchain industry.
Why would anyone buy real estate properties in the Metaverse?
If this is your first time reading an article on the Metaverse, you may wonder why anyone would want to buy a digital house. However, the reasons behind these investment operations are no different from those keeping the classic real estate world alive.
First of all, if you own virtual property, you can earn an income as your land gains value. Think, for example, of experiments such as the Decentraland project. The idea that you could trade land lots in the virtual world was launched on Decentraland in 2017 when lots were worth only a few pennies. If you take your time and visit the marketplace of the initiative, under the “Parcels and Estates” section, you will see how prices have gone up in only a few years.
Do you think that finding commercial tenants in the real world? Things may differ in the Metaverse, and Second Life users are generally aware of it. Among other things, the project lets users buy and put lots of properties up for rent. So while Second Life is probably more prevalent among individuals, some businesses are interested in the initiative.
On Second Life, you can buy a land lot, build a large corporate office and rent it to a business. Companies like the Metaverse’s visibility to their brands and the line between reality and the virtual world is getting thinner.
Also, don’t forget that the input costs in the Metaverse are much lower than in real life. There aren’t even any particular rules to follow to build your property for obvious reasons. Today, making on pixels is convenient (and probably always will).
The numbers in the industry are growing.
If you are in disbelief at the real estate prices on Decentraland, wait before you find out about Sandbox. Republic Realm, for example, is a developer who has recently paid more than $ 4 million to own 2,500 virtual lots on Sandbox. In addition, the investment allowed the developer to put up for sale digital luxury villas as NFTs. Speaking of numbers, Republic Realm could also sell a virtual yacht for $ 650,000 by using ETH.
In the same Metaverse system, a user famously paid $ 450,000 to buy a property next to the American rapper Snoop Dog. This is not the result of some wealthy investors’ folly; businesses are starting to see a real opportunity in the digital world. Adidas is entering the world of NFTs and has recently bought several lots on Sandbox.
Due to the high interest in the market, asset management firms are also studying opportunities. For example, a report by Grayscale presents a revenue prediction of $ 1 trillion for the virtual real estate sector.
An opportunity for big companies
Do you remember when, twenty years ago, some companies looked skeptical at the usefulness of opening a website? But, then, over time, the digital marketing sector has grown, eliminating any uncertainty about the tool.
Some companies may consider the Metaverse to be a three-dimensional website. Web 2.0’s design makes it free and accessible to anyone. However, the new technologies of Web 3.0 may not provide this privilege.
Consider the simplicity of opening a website. Buying a domain can cost a few pennies, and it can find excellent hosting service at an affordable price. However, the Metaverse may not be easy since exclusive properties in strategic locations are already getting more expensive.
The trend in virtual real estate prices is expected to continue. And, we may reach a moment when only big companies will afford good digital land lots. This is already a debate on the market, and the issue will need a solution soon.
If giants such as Facebook Inc. (or, using its new name, Meta Platforms Inc.) are planning billionaire investments in the industry, small companies have good reasons to worry.
The futuristic concept of virtual real estate is coming to life. And, we expect this to be one of the hottest trends in 2022. Since the Metaverse will become more and more intertwined with blockchain technology, we will keep an eye on the matter.