When writing about the metaverse, it’s often referring to objects and worlds, but another important part of the metaverse is real estate. You can buy land in various metaverses, including Decentraland and Sandbox. That sells like hot cakes.
Real estate in the metaverse
On the one hand, the metaverse is a world where everything is free, creative, and limitless, but at the same time many things are eerily similar to our own world. In this way, you can buy real estate there, just like you would buy land in the real world. In some cases you pay almost the same for that: some people pay millions for a piece of land in Decentraland.
Of course, you can build a house there, but you can also make a shop, a concert hall or a monument – it’s totally up to you, there are hardly any rules. Imagine that in a few years the whole world can be found regularly in the metaverse, it would be great if the biggest artists in the world came to your concert hall or even your stadium to give away a virtual show.
That’s what’s very noticeable in the metaverse: people and businesses want to be there right away to record something that could potentially be worth a lot more money down the road. Either because a lot of people want to rent your land (even if it’s temporarily for a concert), or because you could be selling it for a lot more cryptocurrencies.
Decentraland is the best example of real estate in the metaverse: it includes land purchased by Snoop Dogg, causing the virtual land around that land to suddenly increase in price. They paid 300,000 euros just for being Snoop’s boom. As an extension of this, districting is seen: within Decentraland, for example, there is a Fashion Street district where there are 116 parcels available. What if you buy land there, but all the expensive designer brands want to open stores in that particular area within that metaverse? Great, so Louis Vuitton can pay your rent.
It sounds childish, but it’s a bit true: the Monopoly effect kicks in. You have a certain street and if someone wants to walk on it (or rent it temporarily), there is something in return. It is obviously an interesting business to be in and one that is potentially very lucrative. As long as the metaverse you choose is or will become a highly visited and popular metaverse. Decentraland certainly is, but the metaverse that Meta will soon come up with, who knows how this kind of real estate trade goes there? And, more importantly, who knows how popular it will become? No matter how much money companies invest, there is still a chance that it will fail.
At the same time, we also saw this at the beginning of Internet browsing. People would create websites in HTML and eventually when there were enough visitors they would start advertising so they could make money. Spotselfie also works like this, a metaverse where you can buy a piece of land that has certain coordinates.
If Spotselfie decides to place ads in that location, you’ll also receive a portion of the revenue. The fun trick is that this works through augmented reality and corresponds to real world coordinates, so soon you’ll be seeing an ad through your augmented reality glasses as you walk to the gym, earning money for someone who doesn’t go . piece of land owns the real world, but in its copy in the metaverse. In short: land grabbing in the metaverse can go a long way.
In any case, it still sounds very strange to many people: you are not going to pay hundreds, thousands or even millions of euros for a piece of digital land, right? In principle, the surprise is understandable, but with a bit of Monopoly in mind, and the knowledge of how this works in the real world with real estate, it is also good to imagine that the people who have it, invest their money now alone. to see it grow even more later. Only the latter is not guaranteed, but these people want to take the risk, because they believe in it. And if enough people do that, they do it well. And a big fat bank account.
When you’re not tapping, you’re floating somewhere in the wonderful world of entertainment or on a plane to some great place in the real world. Mario…