The world of metaverse has become the subject of public discussion lately. Starting from the existence of a new metaverse game, the creation of a metaverse world by well-known companies such as Microsoft, Facebook, Google, and others. However, recently the metaverse has emerged as a marketplace for buying land and selling land on the metaverse. In this article, we discuss the potential of land in the metaverse and what are the advantages and risks that will occur if having land in the metaverse.
What is Metaverse Land?
Metaverse is a 3D virtual reality that allows users to own, create and monetize digital assets. Each Metaverse consists of a finite number of parcels/plot of land with fixed dimensions. For example, Metaverse Decentraland consists of 90,601 (16m x 16m) plots of land. Users can build and develop their land by filling it with digital assets to create value. Digital assets can include:
- 3D objects
Digital land is the most profitable investment in the Metaverse ecosystem. People can acquire land and then sell or rent it to other users. Thus, they can earn passive income from their investments.
What is the Advantage If We Have Metaverse Land?
Earn Income from Your Virtual Land
The lot called LAND #115792, for example, sold for the equivalent of $111.52 at MANA on December 17, 2017. The same lot on December 16, 2021, earned $13,703.49. Imagine if you bought the land years ago and rented it out! That’s a significant advantage when you come back.
Landowners in Second Life are constantly renting out their properties and placing their land for rent. The income from the virtual real estate they acquire has the potential to be enormous, and it has been sustained. Individuals are usually the ones who rent them out. You can rent virtual houses and apartments as well. However, you can rent out a virtual mall, virtual office, or virtual event space.
Input Costs Are Low in Comparison to Real Life
Property inspections are not required. There are no limitations on what can and cannot be. There are no restrictions on who may occupy what or for how long. Some may be more expensive, but you won’t have to worry about physical inventory, waste, or the supply chain. Everything is made up of pixels and electrons. It can be manipulated to suit your needs.
What to Consider When Buying Metaverse Land?
As a beginner in the metaverse, it will be difficult to predict which metaverse platforms are safe and will not make you lose money. If you choose popular metaverse platforms, you can make a lot of money, but if you don’t monitor the metaverse platforms’ development, you can lose a lot of money. Don’t delay the popularity of the established platform. There’s still money to be made there. While you won’t see thousands of percent return on your investment in Decentraland or The Sandbox, you can still earn consistent returns, similar to what you would get in the real estate market.
Risk and Analysis
Zach Aarons, the general partner at real-estate technology VC firm MetaProp, told the Wall Street Journal. This is perhaps the most important thing to consider when dealing with the real estate metaverse. It’s a niche market, albeit with a passionate fan base. You have to realize that your market is small and will probably stay that way. There’s nothing wrong with that, but your investment strategy should reflect this.
The thing that’s important to keep in mind with digital property in metaverse because it’s incredibly new, extremely experimental, and highly volatile. A few months ago, you could buy lots in almost any Metaverse for a few hundred dollars, but today, you’ll need a few thousand, minimum, just to get in the door.
Because there’s not a long history of transactions for most metaverses, investing in them is highly speculative. That’s not to say you can’t win with virtual real estate; it’s just that it’s a very new type of asset, and we haven’t yet figured out what the price tolerance is or how much interest there will be in any specific metaverse.
So you must keep this in mind when shopping for virtual real estate in digital world. No one wants to think about the failure of their investment. Still, there is always a risk with investing in anything. The problem with metaverse real estate is pretty big, and even worse, if the metaverse platform folds up, your investment just disappears. Unlike real-world real estate, where you can always come back to the fact that you still own a piece of land that you can touch and stand on, metaverse properties can disappear entirely if the platform fails financially.
How to Buy Metaverse Land
Set Up Your Account and Wallet
First, you need to create an account and connect a wallet. Your purchased LAND will be stored on this secured wallet.
Choose Your Buying Platform
You have a couple of options for buy virtual land in the Metaverse. You can choose to buy your property directly on a specific metaverse platform or go through one of many popular third-party platforms that offer purchase and selling opportunities.
Purchasing inside the Metaverse is nice because you can get a good feel for what you’re buying, including seeing who the neighbors are and what sorts of amenities may be nearby. However, if you’ve not committed to a metaverse yet and are trying to shop around for a deal in your price range, it can be pretty tedious to continue platform-hopping until you land on one suitable.
In that case, one of the third-party platforms, like OpenSea or NonFungible.com, are great options. You can see virtual land parcels across several platforms (offerings may vary between third-party providers) and the asking price in your local real-world currency equivalent. This can be an easier way to understand how much you’re actually spending if you’re new to the Metaverse, especially since every crypto coin has its own value, independent of others.
Get Your Land
If you’ve bought physical real estate before, you know this next bit can be an absolute nightmare in the real world. In the virtual world, it’s kind of almost not a thing. When you find a parcel you like that’s within your budget, you simply click on it and buy it on some platforms like Decentraland. You can make an offer for the property within the platform, and the owner either accepts or rejects your request.
Either way, once you have your parcel selected, your wallet funded, and you’ve settled on a price, clicking the buy button literally wraps up the rest. Blockchain funding takes just a minute, and the transaction is recorded using an anonymous identifier for your wallet, indicating that you now hold the NFT title to the property. Your ownership is complete. It’s all yours, as long as you don’t lose your digital wallet where you’ll store your NFTs.