Someone recently paid $450,000 to be Snoop Dogg’s neighbor in the increasingly popular virtual world called the Sandbox. The world of virtual reality is exploding, and digital real estate investors are quickly snatching up the virtual real estate market in hopes of capitalizing on it in the future.
Digital real estate is one of the newest digital asset you can own and monetize. Digital real estate assets are acquired on places like Decentraland, Cryptovoxel, and Sandbox platforms. In addition, investors are snatching up metaverse real estate more recently, boosting this multi-million dollar industry.
Big Names Are Buying Digital Real Estate
Not long ago, PricewaterhouseCoopers Hong Kong purchased land on the Sandbox platform, making itself the initial member firm to purchase digital land.
Buying and selling digital land or even more extensive estates on metaverse platforms like Decentraland has been particularly popular. Tokens.com, an investment company focused on cryptocurrencies, just bought a plot of land on Decentraland for $2.43 million. And The Sandbox recorded a $4.3 million sale for a parcel of digital real estate.
There are a variety of types of digital real estate. Most people think of the metaverse regarding digital real estate, but it must be stated that digital assets come in many forms. Digital real estate includes e-commerce stores, domains, apps, blogs, NFTs, and affiliate sites.
In addition to Decentraland and The Sandbox, some of the other large platforms where you can purchase digital land include Cryptovoxels and Somnium Space.
What Is Digital Real Estate Really Worth?
The value of digital real estate can vary wildly. just like a physical piece of real estate, you can purchase land with prices based on various factors. You can hold the asset and allow it to appreciate naturally, or apply forced appreciation by adding value.
A quality piece of digital real estate that is well-designed is worth far more than the initial startup costs.
How Much Money Will You Need?
More developers and investors are taking advantage of the early-stage opportunity of owning digital real estate. Unfortunately, this is jacking up the cost of purchasing digital lands, and as of this writing, purchasing land in Decentraland will cost you approximately 4700 MANA or $13,000.
The Cryptovoxels platform has slightly more affordable prices – digital land is available for purchase through OpenSea and averages 2.57 ETH or about $7,800.
How to Get to Decentraland
Decentraland is a blockchain-based, 3D, decentralized virtual world where you can meet, chat, play games with other players in real-time, and buy and sell land. It’s a web 3.0 universe best experienced with the digital wallet Metamask.
Decentraland allows anyone to establish whatever their imagination can generate onto a plot of land for everyone in the world to experience.
Many things have been built in Decentraland, including games, office space, homes, and museums. Nearly all in-game items can be bought or sold for actual money. Decentraland was first established in 2017 but has grown considerably in popularity and value. The in-game currency is called MANA.
Decentraland is a virtual world built on top of Ethereum. It’s a decentralized virtual world where people can own and develop virtual land as digital landlords. You can also wander around and explore what other users have created. The landscape consists of interactive objects or static 3d scenery.
What Is The Metaverse, And How Does It Work?
Metaverses are actively transforming the internet as we know it today. While still in infancy, metaverses already impact how we interact with one another.
The most identifiable characteristic of a metaverse is your 3D digital avatar. Many games contain a universe of customizable avatars, including Roblox, Minecraft, Fortnite, and even World of Warcraft. However, the previous games are not decentralized and do not have an in-game cryptocurrency.
The metaverse is attracting some of the sharpest minds from the realms of computer science and neuroscience. Part of the attractiveness of metaverse development is its open-sourced nature, user-controlled keys, and community-owned and generated networks. As a result, developers are actively creating more spaces to shop, play, and interact. Facebook’s branded Meta-verse will support users with Oculus VR and AR headsets.
The metaverse opens a new way to interact with the web that isn’t owned by a single entity. Therefore, decentralization is one of the essential parts of understanding the metaverse. This new technology, specifically NFTs and the blockchain, allows us to verify ownership reliably. For example, Nike recently patented their digital goods with blockchain technology.
Metaverse worlds are quickly becoming where many people choose to spend their time. As a result, more people are gaming, meeting, and socializing in digital spaces.
Top Reasons To Invest In Digital Real Estate
Here are some of the benefits of owning a piece of the virtual world.
The cost of metaverse land has increased dramatically since the day it was initially sold. Many people want to invest in digital real estate in order to generate a profit.
However, not all real estate deals are beneficial. There are highly inflated prices in some areas of the metaverse, so make sure you check around to get the best price for land without getting taken advantage of.
Build A Community
Owning tokens allows you to connect with the community in the digital space and enables you to vote on the outcome of that token.
Pros Of Investing In Digital Real Estate
- Increase diversification with a digital investment
- Tremendous income potential
- Potential for self-employment as a business opportunity
- Sound fundamentals
- Lower startup costs than buying physical land
- Easily scalable as an online business
Cons Of Digital Real Estate Investing
- Virtual and digital skills needed
The world of real estate has changed dramatically over the past few years. It seems like every week, we hear about another new technology used to revolutionize the industry.
As a result, many people are now investing in virtual properties. These properties are often referred to as “digital real estate.” They’re basically websites that offer homes for sale or rent.
That said, there are still plenty of risks involved with buying digital real estate. Still, wealthy individuals continue to invest millions of dollars into this limited digital land.
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