You must have heard the word Metaverse a lot in the past few weeks. The hype around the metaverse has grown exponentially in the past couple of weeks. You must have heard that people are actually investing in something known as Metaverse Real-estate. In fact, someone has recently bought real-estate in the metaverse for $2.43 million. It is the biggest real-estate purchase anyone has ever made in the virtual universe. It was the Decentraland’s Fashion District that was bought by the Metaverse Group, owned by Tokens.com.
For several people metaverse is nothing but an interpretation of virtual social reality. But those who have their eyes on the future opportunities consider it a multi-million dollar real-estate investment. Although, these virtual spaces are not created to be inhibited, yet millions of people planning to invest in metaverse real-estate.
Why Are People Investing in Metaverse Real Estate?
The term “Metaverse” emerged as soon as Facebook was rebranded as Meta. According to tech companies, there is a digital revolution coming. They believe this revolution is the first step towards exceptionally anticipated digital resurgence or immersive computing.
No matter what people say, one thing is obvious, there is something so exciting about virtual real estate that people are willing to invest millions of dollars in the metaverse real-estate. However, some people are afraid it might be just another crypto trading trend.
How do you calculate the value of the property if it only exists virtually?
The misconception about virtual real estate is that it is infinite just like the internet. However, that’s not true. Metaverse is limited. The virtual worlds are multiple but all of them are limited in their size. Just like real-life real-estate virtual universes have a limited amount of space. These universes are designed in a way that more land cannot be added to them in the future. This feature makes them rarer which further adds to their value.
The concept of keeping a digital real-estate supply limited is not new. We have already seen that with Bitcoin. Only 21 million bitcoins will ever be launched and circulated. There won’t be further additions once the number has been achieved. The limited supply will add to the value of the currency. The same is the case with metaverse.
Similarly, Decentraland has sold 90,000 plots of land. Each pocket of land is 2,704 square feet in size. Even though these pockets of land were sold in 2017 and 2018 but they are being resold because their market value keeps rising. Today, the price of 6,090 square feet of virtual land is $2.4 million.
It seems like the location of virtual real estate will become as important as the location of physical property in the future. Just like physical property, people will choose to invest in the areas with more population, rather than buying property on the peripheries of the Metaverse. This makes the location of virtual real estate an important factor that decides the value of the land. This makes virtual real estate location very important for brands.