You can’t say no to profit ,” said Clerkclirk, a property investor in Metaverse, after spending $92,000 on a luxury apartment with Japanese-style furnishings overlooking the city; And because he loved the neighborhood so much, he bought another 70 properties, all virtual!
The world is moving with unlimited speed into the age of metaphysics, where we will live a virtual life in the digital world alongside our usual lives. We will use this world to work, play, learn and socialize. Simply put, each of us will have a digital twin in a virtual world that he controls while staying at home. Not only that, but this world includes financial and economic transactions such as investing and making money, and real estate investment is perhaps the most famous and strange way in this field at the same time.
But why the surprise? We’ve seen events that drive us crazy, like virtual outfits for a virtual character , or those millions spent on pictures of digital monkeys , so what’s surprising is that the next step is to buy and invest in virtual land!
Metaverse real estate trading is already very much in the spotlight. Some celebrities have started buying virtual land such as American hip-hop singer Snoop Dogg , as well as leading companies that have acquired plots of land for various purposes such as Samsung, PWC, JP and HSBC
Do you know?
Samsung is preparing to open its first store in the metaverse called “Samsung 837X”, which will be an integrated virtual experience that includes different worlds, missions and rewards as well!
Those who got into investing early have already made big returns. Less than a year ago, the average price of the smallest plot of land available for purchase on Decentraland or Sandbox was less than $1,000, two of the biggest metaverses. . Today, the price of those pieces is about 13,000 dollars.
Should we now take the opportunity to buy some digital assets before their price goes up again? Like ten years ago when some bought some bitcoins or two years ago when we heard about non-fungible tokens ? Should you enter this field and participate in the events? Or is it better to stay away from it, perhaps it is just an inflated balloon that does not soon explode?
Why would you want to buy property in Metaverse?
As crazy as that sentence sounds, buying real estate in metaverse is similar to buying land in the real world, even if you don’t buy into the idea of saving your money on a virtual plot of land, there are two main reasons to buy real estate in metaverse. The first, and the safest, is that you want to use the plot of land for some purpose, such as build a house and live in it, or keep it until you need it for some work.
When we talk about “living” in metaverses we really mean that you will have a place you call home, put your digital possessions or invite your friends to visit. It’s like when some of us had a website in the old days before social media platforms came along.
These “homes” on Metaverses will serve as a way for people to express themselves online or as a virtual place to collect their unique digital possessions.
This approach is the least risky when you think of buying real estate in Metaverse, because you will get what you want for the necessary price. The second goal is investment, and here things get a little worrisome, because in any investment there is no guarantee that the value of real estate will rise, in any case, it seems that we will cut gold by investing in real estate Metaverses, prices have increased tenfold over the past year only!
Many are buying digital lands now because they think they will be more valuable in the future, when more people will join the metaverse world. Some even buy with the intention of renting, with the emergence of a safe rental market.
The potential risks of that hypothetical investment
Even if you are not defrauded during your purchase, you may encounter technical troubles that add more risk to this project, since exchanges are made with cryptocurrency and NFT tokens, you must be sure that you store them securely and that you will not forget the password, for example, so that your wealth will go to waste, as happened with American programmer Stefan Thomas when he lost the password to his digital wallet containing 7002 bitcoins, or approximately $29,323.70!
All in all, since all financial transactions are documented via the Blockchain with cleverly written contracts that are securely encrypted, the risk of a thief stealing your virtual property or backing out of your rental payment agreements is relatively low. However, there is a concern that future technologies (such as quantum computing) will render the cryptographic techniques used today weak and obsolete. This may not be a threat at the moment, but it will raise concerns for those considering inflating their investments in the long term.
And finally we have the issue of scarcity. Real world lands are finite, and the masses of people who want to own them are growing over time. In the virtual world, the amount of available land is unlimited. If all the lands on the platform are sold out and there is a constant demand from buyers, nothing can stop the developer from creating as many new lands as the platform needs. For large platforms, they are quantified, creating an “artificial scarcity” but there is no guarantee that this will not change.
How to buy real estate in Metaverse?
Property purchases from metaverses are cryptocurrency, Ethereum is a popular option, as is SAND, Sandbox’s token, and MANA, D’Sintraland’s currency. So owning these is the first step. These two platforms are the most popular in the field of digital real estate investment, they have paved a sound infrastructure and attracted well-known landowners, high-profile tenants as well as the aforementioned companies, which gave them the necessary reliability and popularity.
You will certainly find many people who want to live next to the famous singer Snoop Dogg, for example, the purchase of land on either of these two platforms can be done directly through the platform itself. Selling and owning in metaphysics is reserved for transferring non-fungible tokens, so you’ll need a wallet capable of holding these tokens. We recommend Metamask and Binance, two of the most popular.
Just like buying directly from platforms, there is a marketplace full of distributors who act as a third party between the platform and the buyer, acting as a middleman in real world real estate. We mention opensea.io and nonfungible as decentralized real estate agents in the digital realm, allowing sellers to list their properties and their prices, and allowing buyers to negotiate.
In the following screenshot, we were able to find a 3×3 Sandbox plot, which we couldn’t figure out for because the buying and selling process is negotiated as we explained earlier, we have to negotiate a price to be accepted or rejected by the owner.