![]() ![]() While investors and companies are dominating this space at the moment, not all metaverse real estate will set you back millions. According to the buyer the space will be used to host digital fashion events and sell virtual clothing for avatars – another potential area for growth in the metaverse. ![]() The future of metaverse real estateįinancial incentives aside, you may be wondering what companies and individuals will actually do with their virtual land.Īs an example, the Metaverse Group’s purchase is in Decentraland’s fashion precinct. No one can be certain if this boom is the next great thing or the next big bubble. While it appears that values are climbing, it’s important to acknowledge that real estate investment in the metaverse remains extremely speculative. In February 2021, Axie Infinity (another virtual gaming world) reportedly sold nine of their land parcels for the equivalent of US$1.5 million – a record, the company said – before one land parcel sold for US$2.3 million in November 2021. It’s not just Decentraland seeing appreciations. The size of this purchase was actually smaller than the former – 116 land parcels compared to 259 bought by Republic Realm. According to DappRadar, a website which tracks NFT sales data, it was the most expensive purchase of NFT land in Decentraland history.īut then as we know, in November 2021, the Metaverse Group bought their plot in Decentraland for US$2.4 million. In June 2021, a digital real estate investment fund called Republic Realm reportedly spent the equivalent of more than US$900,000 to buy an NFT representing a plot on Decentraland. We’re already seeing examples where the value of virtual real estate is going up. For example, Decentraland is made up of 90,000 pieces or “parcels” of land, each around 50 feet by 50 feet. To ensure digital real estate has value, supply is limited – a concept in economics called “scarcity value”. On platforms like OpenSea, where people go to buy and trade NFTs, there are now plots of land, or even virtual houses. Although NFTs are primarily items of digital art (such as videos, images, music or 3D objects), a variety of assets may constitute an NFT – including virtual real estate. Other than cryptocurrenies, non-fungible tokens (NFTs) are the primary method for monetising and exchanging value within the metaverse.Īn NFT is a unique digital asset. Transactions in the virtual world are generally monetised using cryptocurrency. Metaverse: five things to know – and what it could mean for you Importantly, as in the real world, it is and increasingly will be possible to buy things in the metaverse – including real estate. In the same way a website is part of the broader 2D world wide web, individual metaverses will form a larger, connected metaverse. There are several metaverses already – for example in virtual gaming platforms like The Sandbox and virtual worlds like Decentraland. The idea is the metaverse will develop to become a collaborative virtual space where we can socialise, play, work and learn. Users will meet and communicate as digital avatars, explore new areas and create content. This immersive environment will be accessible through the likes of VR headsets, AR glasses and smartphone apps. The metaverse describes a vision of a connected 3D virtual world, where real and digital worlds are integrated using technologies such as virtual reality (VR) and augmented reality (AR). Other companies, such as Nike and Microsoft, have also announced they will launch into this space. You probably heard the term a lot when Facebook re-branded to Meta in October 2021. Let’s refresh on what the “metaverse” is. ![]()
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