To many people, buying virtual real estate that has no physical presence seems like a peculiar way to spend your money. That is unless you fall into the ever-growing pool of celebrities, influencers, and giant corporations making the investment in virtual land. So, is the investment worth it? And how can you make sure that you are purchasing responsibly? In this post, we aim to answer some of those pressing questions.
What is Metaverse Real Estate?
Given that the metaverse is the non-physical, virtual world, you may be wondering: what is the point in metaverse real estate if it isn’t physically real?
Metaverse land exists online only, but that’s not to say it isn’t a hugely valuable asset. Plots of virtual land can be purchased using non-fungible tokens (NFTs) on online metaverse platforms such as The Sandbox and Decentraland. Generally, the virtual property can solely be bought using cryptocurrencies.
However, there’s no question that once you have purchased your metaverse real estate, you are the true proprietor – this information is stored on the blockchain forever. While you may be unable to walk through or physically touch your property, it is still yours.
What Can You Do With It?
Depending on the metaverse platform used to purchase the land, you can use your plot of land for various purposes. For instance, it can be used to build a 3D mansion – as in the case of Snoop Dogg, the proud owner of a mansion on The Sandbox metaverse, which he uses to interact with fans, host private concerts and sell digital merchandise. You can also host parties in your virtual property or create a game and monetise it by charging other users to play it. Alternatively, companies have invested in metaverse land to advertise their goods and services or organise events for users.
As platforms evolve, there is no limit to the possibilities of what you can do with your virtual real estate.
Why Buy Land?
There are three main advantages of buying land in the metaverse: complete flexibility, valuable and fun! Let’s explore these advantages in greater detail.
Unlike physical real estate, virtual plots of land are highly versatile: you can use your land for practically anything you want. No matter if you have always wanted to be a virtual theme park tycoon or the owner of an art gallery – anything is possible.
The reason most people get into the virtual real estate investment game is that it is lucrative. The metaverse follows the same economic principle as the real world: a commodity that is scarce becomes more valuable. As virtual land becomes more in-demand, then sales rise, and land becomes scarcer. This is what is currently taking place on some of the most popular metaverse platforms, with land sometimes selling for millions.
So, if you decide to invest in virtual real estate, you can expect it to appreciate in value as time goes on and ultimately sell it for a higher price than when you purchased it.
Quite simply, creating spaces virtually for either yourself or others is fun and has great entertainment value. It also allows you a front-seat view of metaverse development.
The Risks of Investing In Metaverse Land
As with real-world property investments, there are things to carefully consider before jumping straight in and splashing the cash.
Firstly, as with any investment, it is a risk to put money down as you could lose it. Though it is pretty much guaranteed that we are moving in the direction of the metaverse as technology improves, that doesn’t mean to say your investment will always be safe.
We’re still in the dawn of the metaverse, with companies battling it out to make the most technologically advanced iteration of this virtual world. As such, there will always be another emerging metaverse claiming to be the best and outdoing the last. This could mean that the metaverse in which you own property loses its edge. If this happens, its popularity will drop. As we know, metaverse land is priced according to the popularity of the platform, so your investment could decrease in value if the platform’s popularity dwindles.
In the meantime, consider checking out the works by Metaverse Insider to learn more about this technology and stay up-to-date with the latest events in the metaverse industry.
How to Buy Land in the Metaverse
Now that we’ve covered all the reasons you should consider investing and the risks surrounding virtual real estate, you’re probably wondering how to go about actually buying it. Below is a simple three-step guide on how to buy land in the metaverse:
- Choose a Metaverse;
- Open a Wallet;
- Purchase the Land.
Choose a Metaverse
There is a myriad of metaverses to choose from. If you’re a newcomer and this is your first investment, your safest bet is to set yourself up on a mainstream platform that already enjoys a good deal of popularity, such as The Sandbox or Decentraland.
Open a Crypto Wallet
You’ll need to set up a crypto wallet before being able to purchase a plot of virtual land. This will need to be connected to your chosen platform, so make sure you’re choosing a wallet that is compatible with your selected metaverse, as not all of them work together.
Purchase the Land
Obviously, you’ll need the appropriate currency (and the correct amount) to buy the land, but if you have it, it is usually pretty clear how to purchase a plot of land. There is typically a map on the metaverse showing all the pockets of land that are for sale. Take a good look around the land if you can, as you would in the real world. If it’s an enticing plot, put in your offer and wait for the seller’s response.
If the seller accepts, you’ll be the official new owner and ruler of that plot of metaverse land, and your ownership will be registered on the blockchain until you decide to sell it!
If you have come to the end of this post and are still wondering why anybody would invest their money in virtual real estate, then perhaps that tells you all you need to know – an investment of this nature is not for you. If you’re on the fence, you should take caution and not rush into anything before conducting more thorough research and understanding exactly where your gelt is going.
Alice is a professional writer and editor at Research Snipers, she has a keen interest in technology and gadgets, She works as a junior news editor at Research Snipers.