You might have gone through the latest headlines more after Facebook changed its name to Meta. Now you may be thinking, what is this metaverse? Why is metaverse real estate sold at such great prices than most popular places on this earth? In this article, we will be telling you about the metaverse real estate and its future.
The Origin Of Metaverse
Metaverse is primarily a virtual reality space that is shared over the internet. The user can access them from any part of the globe and interact with each other over the metaverse. The internet combines people from all over the globe together; the metaverse is set to bring us closer. Many consider the Metaverse the heir of mobile internet, and now we know the reason.
Metaverse is not a new idea, and in 1992 a science fiction novel by Neal Stephenson had put forward the concept. Since then, most of us have communicated with the idea of Metaverse, be it in games like GTA V, Minecraft, online or via movies like The Matrix and Ready Player One.
Within the Metaverse space, we can meet new people, roam around, explore new places, do the shopping, go to a bar, and even dress up as our favorite avatars, all while sitting at the corner of our room.
Metaverse is still a developing idea and truth is yet to be told. We are far from navigating its complete potential as of now. But this has not restricted big entities, like Facebook, from being a part of the Metaverse.
There are various iterations of Metaverse, each having its metaverse digital currency. All Metaverse can coexist like varied nations, where users can jump from one nation to the next and be a part of their unique advantages.
The most evident one is Decentraland, which is constructed on the Ethereum blockchain, where you can purchase land and trade NFTs by using its metaverse crypto coins, known as MANA. Users can hold the MANA like a stock to raise its value or buy Avatars and other experiences on the metaverse space.
Metaverse Real Estate: How A Virtual Land Gets Value?
The web can be infinite, but not metaverse. There are multiple digital 3D worlds but of measured sizes. Thus the supply of land and real estate is limited. However, more can be added in the coming future.
The underlying idea of limited supply is the same as that of Blockchain. Say 20 million BTCs are released for distribution. Once the amount is attained, there will be no extra things added. Hence due to its scarcity of supply, it continues to derive its value.
Decentraland, constructed above a metaverse blockchain, has only 90,000 plots of land, with each plot gauging 2704 sq. ft. They auctioned all the properties between 2017-2018. But increased interest in this space has opened up a new second round of auction for the plots of land and has pushed the values to new highs.
Factors Driving The prices Of Metaverse Real Estate
Similarly, all metaverses have witnessed a jump in the plots value tags and a massive jump in the amount of daily active users. So, let us see the various factors that are driving up the Metaverse Real estate investing prices.
The values of the plots operate on the idea of rarity. You can raise the number of metaverses, but the number of plots of each metaverse will stay the same. The concept is like Bitcoin or NFT. Unlike normal currency, there can be only 21 million BTCs that anyone can mine. So, this scarcity in amount helps in raising its value.
The values of our physical real estate vary on the location. The same is the case for virtual reality plots like Metaverse real estate sales. Big entities are jumping to construct malls, concerts, tourist attractions, and other social gathering places like the shopping district. The assembling of many virtual users raises the traffic of the places and allows to drive the value even more.
As human beings, we all have a prominent Fear Of Missing Out. News of each land sale bringing millions of dollars has made the people jump on the bandwagon. Certainly, it also raised the secondary market price of the plots in the digital reality arena as first purchasers are selling their plots more than their primary value.
By now, the hints are evident that the metaverse has come to stay, and it is surely the next big thing after the mobile internet. The community handles the metaverse and receives incentives to take part in the decision-making process. Clearly, it makes the metaverse free from the clutches of big entities and governments.
But all of this comes from massive consumption of energy, as one transaction via Ethereum can use the energy that is equal to five US households in a day. There is the risk of money laundering and hacking, which can be solved by using digital currency security. As the metaverse is developing every day, the demand for metaverse real estate is also growing with the acceptance of metaverse cryptocurrencies.