We’ve been hearing about Metaverse Real Estate topics in recent news and social media activities and how investors spend thousands and millions of dollars to purchase digital lands. This article will go through the basics of Metaverse Real Estate, the investment within this sector, and other related information.
The best way to get started to answer the question of What is the Metaverse itself.
What is The Metaverse?
The Metaverse, in simple words, is an alternative digital reality where people can enter using AR/VR glasses to meet each other, communicate, participate in digital events, and use their imagination to create a digital identity for themselves.
The limitations and rules of nature of our reality don’t apply to the Metaverse and virtual reality. Anything is possible in the Metaverse. With this freedom, the possibilities are endless. This space grants liberty to people to create anything they imagine in the Metaverse.
The Metaverse concept is part of the Web 3.0 movement, simply the decentralized model of our current webspace.
What is the Metaverse Real Estate?
We’ve been hearing about metaverse real estate for the past recent months. Companies and individuals are spending millions of dollars purchasing lands on the Metaverse. PwC is one of the latest land purchasers in the Metaverse. But why do these “non-existent” virtual lands have value?
If we are advancing in an era of having two realities, real and virtual, then every aspect of our current reality will have a version of the virtual realities. We see digital arts, fashion, events, malls, etc., being created on the Metaverse. Therefore, our current real estate concept applies to the virtual world. If you think deeply, our real lands on our planet get their “imaginary” value from being located at specific locations. The same applies to virtual lands. We are placing value on virtual lands situated at strategic locations. It all ends with the human perception of creating values.
For example, the rapper, Snoop Dogg, is developing within “The Sandbox,” a famous virtual world, a virtual complex called The Snoopverse on land purchased for $450,000. Once this project is done, there will be human traffic around that land, so it makes sense that the lands around The Snoopverse now have higher values. More people passing from The Snoopverse give other landowners around the plot an opportunity to use this traffic for various goals.
How does the Metaverse Real Estate work?
All virtual worlds and realities run on a technology called the blockchain. The blockchain is a decentralized digital collection of information about transactions and records. No organization or individuals own the blockchain. Therefore, as a result, transactions on the blockchain cannot be changed — creating a permanent record that’s shared with everyone on the network.
On the blockchain technologies, different companies have created virtual worlds, which when the project is moved on the blockchain, no one can own or control the project. The most popular virtual worlds are The Sandbox, Decentraland, Cryptovoxels, Earth2, Nifty Island, Superworld, and Wilder World. Each offer different things to users like hyper-realistic graphics and gaming options communities of specific types of early adopters.
Each of these virtual worlds has a map divided into pixels (similar to plots of lands). People can purchase these pixels or lands on secondary marketplaces, like OpenSea.io, as an NFT (Non-Fungible Tokens). They will then receive the ownership of those lands from the project developers or other landowners on their digital wallets, like MetaMask. The record of the transaction is permanently set on the blockchain.
Once the lands are purchased and owed within these virtual worlds, depending on the limitations of the virtual world, they can develop various virtual items on the lands, for example, The Snoopverse by Snoop Dogg.
Is it a good idea to invest in Metaverse Real Estate?
Before delving into the investing side of The Metaverse, you may be asking what businesses and people will do with their virtual land. The Metaverse Group, for example, purchased in Decentraland’s fashion district. According to the buyer, the facility will organize digital fashion events and sell virtual apparel for avatars – another area of potential development in the Metaverse.
So, think about the virtual lands this way. The concepts are very similar to the real world, except no laws of physics apply to the Metaverse. Once someone is wearing the Virtual Reality goggles, they are in the virtual world, which then they can visit, interact, communicate, participate, purchase an item, etc., within the virtual world. So, we should look at The Metaverse, something that will stay with us in the future. On the positive side, The Metaverse has its perks. People can’t steal from each other, no natural disasters can affect your land and properties, it’s quick to build projects, etc.
Now financially looking at The Metaverse Real Estate; obviously, companies and individuals investing early in the Metaverse are the main winners—at least for the time being. Many of the early buyers of the metaverse real estate already doubled their investment. So, the key now is to be early and purchase lands close to popular brands and people at a financially reasonable price. Once you have purchased your virtual land(s), you can either hold the land for its value to increase or develop something on the land that requires you to hire 3D modelers and technical developers. However, it would be best ALWAYS to do your research first since you are solely reliable for your decisions and actions on the blockchain. Once you make a transaction on the blockchain, there is no going back since all records are permanent, and no one owns the blockchain and can support you.
How can I get started with The Metaverse Real Estate investment?
The current procedure to acquire land in the Metaverse is quite complicated for a non-technical individual. Therefore, before purchasing lands, you need to educate yourself about the blockchain, cryptocurrencies, metaverses, NFTs, etc. Once you feel comfortable with your way around the blockchain, then here are the steps to purchase your first metaverse real estate:
- Go to a secondary NFT marketplace like https://opensea.io and search for the virtual world where you want to purchase land. For example, The Sandbox virtual word.
- Be aware of fake NFT projects and scammers on these marketplaces. Always triple-check the project URLs with the project’s official website URLs.
- Compare the prices and the locations of the lands and decide which land you want to purchase. The prices are usually in Ethereum and Solana, so make sure you calculate them correctly in your fiat currency.
- Create a cryptocurrency wallet on https://metamask.io and install the plugin on your browser
- You will be asked to save the backup key phrases to your wallet. You should write them down on a safe piece of paper and NEVER share them with anyone
- Create a crypto broker or a crypto exchange like https://coinbase.com or https://binance.com
- Buy Ethereum or Solana (depending on the NFT you want to buy) through your crypto broker/exchange.
- You should always buy extra Ethereum/Solana to pay the transaction fee along the way
- Send your purchased Ethereum/Solana to your MetaMask wallet using your MetaMask’s wallet address
- Make sure to triple check your wallet address because if you send your crypto to the wrong wallet address, then it is lost forever, and there is no way to get it back
- Wait until your Ethereum/Solana is in your MetaMask wallet. Go back to the NFT marketplace where you found the virtual land
- Proceed with purchasing the virtual land using your MetaMask wallet.
- Once your purchase is made, you will see the purchased NFT on your marketplace’s account. If you want to also see the virtual land NFT on your MetaMask wallet, you’ll need to download the MetaMask wallet app on your phone since the NFT wallet is only available on their mobile app.
- Either hold (HODL) your virtual land NFT or investigate further to do something with it.
Again, we need to repeat that the above procedure is not easy, and you should educate yourself and research before making a purchase. The above information is purely for educational reasons, and we are not reliable for any losses.
The Metaverse real estate market and opportunities are vast out there. We see the same patterns as the Dot Com Boom back in the 2000’s happening again. Therefore, wise and calculated investments can profit massively in the future within your portfolio.
Besides virtual real estate, Sunshadow Investments can help you with real assets in Cyprus. If you have any questions regarding starting your next investment in Cyprus, do not hesitate to contact us at email@example.com, call us at +357 24 816246 , or Book a 20-Minutes Online Meeting.