You might’ve already heard the term ‘metaverse’ numerous times across social media and news sites. The metaverse itself isn’t a new concept. It only started becoming a buzzing term today after Facebook announced its new company brand, Meta, back in October 2021. Since then, the metaverse exploded, triggering the interests of many people.
So, what is the metaverse?
The term metaverse was actually first coined by Neal Stephenson in his 1992 novel Snow Crash, and it was used to describe a virtual world in his imagined future of a 21st-century dystopia. In the novel, the metaverse was depicted as a virtual world, a planet inhabited by virtual reality (VR) goggle-wearing users in their customized 3D avatar forms where users can buy and sell virtual real estate.
Today, the term metaverse has still stuck to its 1992 definition of a digitalized world accessed through a VR interface, where users have some form of digital ownership. However, it expanded to so much more. It has become another world where users pretty much do everything they do in real life in the virtual space. It is a combination of multiple platforms to create digital worlds where users can socialize, attend digital concerts, play games, buy and sell things, and so on. People can interact with others and build their digital dreams, from games to advertising boards to commercial districts.
How does it affect real estate?
The way the real estate market functions in the physical world are through buying and selling of property, often including collecting rent money or creating advertising space. This can also be true in the real estate market in the metaverse. The only difference is that real estate in the metaverse looks more like a non-fungible token (NFT) or cryptocurrency than the physical space we’re all familiar with. It’s a digital property that people can invest in just as you would with NFTs and cryptocurrency.
The metaverse land, like in the physical world, is also limited to a number of lots and this varies across different platforms. So like in the real world, lad becomes a limited commodity and this is why investors have become increasingly interested in being the first to take the best spots.
The process of buying real estate in the metaverse is similar to the real world where you first have a title for each land, it is then recorded in the registry, and finally, a copy is given to you to prove ownership. Similarly, the metaverse real estate can be secured with real deeds as an NFT. This means that when you buy real estate in the metaverse, your purchase is recorded on the blockchain and the deed (NFT) is transferred to your digital wallet.
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Is real estate in the metaverse worth it?
The metaverse real estate is starting to boom, however, whether it is truly worth one’s investment or not, time can only tell. Like any form of investment be it the stocks, the physical real estate, NFTs, or cryptocurrency, value can shift. Metaverse real estate can be a volatile market just like those other forms of investments. It is definitely an interesting venture worth looking into with of course a bit of caution.
What clients say about Sukhjit...
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