How does buying real estate with cryptocurrency sound now that the metaverse concept is gripping the world? Read this blog to learn more about this idea.
When it comes to value appreciation, real estate has long been viewed among the most popular investment possibilities. After all, it’s a finite amount, and its usefulness is rooted in its status as a limited resource. But what happens if real estate starts to lose its realism?
When you enter the realm of virtual real estate, you’ll find a lively housing market that’s exactly like the one you’ll find in everyday life. Everything from estate brokers to rental agreements to land barons may be found. Except it’s all in virtual reality, a far-fetched notion a few decades ago but is now a developing reality.
Introduction to Metaverse real estate
Land parcels in virtual worlds are known as metaverse real estate. They are pixels in the most basic sense. They’re more than simply digital photos, though. They’re programmable areas on virtual reality platforms where users may interact, play games, sell NFTs, attend meetings, attend virtual concerts, and engage in various other virtual activities.
Digital real estate is predicted to flourish and expand in tandem with the advent of the Metaverse. In fact, once Facebook rebranded to META and expressed a strong interest in the Metaverse in the fourth quarter of 2021, there was a metaverse real estate bubble. From 2022 to 2028, the value of metaverse real estate is expected to expand at a CAGR of 31.2 percent as its popularity grows.
Reasons to invest in Metaverse real estate include:
- It allows individuals to connect with other people online.
- People can play games and interact on their digital land.
- Creators can charge for access to their material or trade their NFTs to monetize it.
- Brands may leverage their virtual assets to promote services, introduce virtual products, and deliver unique consumer experiences.
Is buying a Metaverse property similar to purchasing an NFT?
Purchasing a metaverse property is quite similar to buying an NFT. However, on a blockchain, your deed of ownership is a one-of-a-kind piece of code. This code verifies your ownership or rights to that digital plot of land.
So you’ll have to have your digital crypto wallet to start your metaverse real estate portfolio. Before signing up for a new wallet, you should check out the platforms that employ various cryptocurrencies for their transactions. After that, go to the virtual metaverse platform and register for an account. Next, you’ll need to link your digital wallet to the site to acquire land and other assets. Finally, choose a piece of property and buy it.
Metaverse land may be purchased through brokers and property managers, just as real-world properties. However, unlike in the real world, metaverse brokers do not require licenses and are not subject to any restrictions. As a result, be sure you’re dealing with reputable companies.
List of things to do with your virtual real estate
Land in the Metaverse provides a possibility for users to monetize virtual assets and events that occur there. Some of the revenue-generating trends that are now in play range from renting to managing metaverse land:
- Flipping Land
Users may buy a parcel of virtual land and then resell it for a profit.
- Building infrastructures
Rather than allowing a plot of land remains idle, many users are choosing to construct a variety of virtual properties on it, either for themselves or for other users to utilize. This comprises digital casinos, nightclubs, performance venues, NFT galleries, and retail outlets, among other things.
Because of the popularity of land NFTs, professional real estate brokers have emerged who, much like in real life, connect sellers with potential purchasers or advise customers on how to manage their metaverse properties effectively.
Areas of the Metaverse with a lot of foot activity are becoming more and more useful for advertising. Owners of that land can rent it out and allow businesses to advertise their goods and services there.
- Events and services
The Metaverse is meant to enhance the online experiences we already enjoy while allowing us to create new ones. As a result, metaverse land is being used to host events and provide services.
How to choose the best parcel of land to buy on the Metaverse?
Location is essential when choosing a virtual land in the Metaverse, just as it is in the real world.
If you’re looking to invest in metaverse real estate, search for places with growth potential. Places, where people can assemble will be more valued than those in unremarkable neighborhoods. Also, consider property holdings close to developed areas but not within them. You may get these properties at a lesser price, develop them, and then wait for the market to rise.
Final thoughts: Is buying virtual real estate in Metaverse a good investment?
Any investment you could consider making, like any other burgeoning technology, comes with risks and benefits. While the notion of metaverse land (and its absence of tangible assets) may be perplexing to some, the promise of virtual worlds, related technologies such as virtual and augmented reality, and artificial intelligence cannot be denied. Only time will tell if the Metaverse is another speculative investment full of expensive digital assets or whether virtual worlds are the internet’s future.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.