As for inventory available from the Big Four, CNBC said in February 2022 that 268,645 parcels of varying sizes were for sale. Decentraland and The Sandbox are dominating the space with the highest volume of sales, according to NonFungible. These two platforms run on Ethereum, a blockchain that powers financial services. Just like Bitcoin and Ethereum, virtual land has seen massive price appreciation.
While there is no definitive answer here — we have all heard some success stories. But buying metaverse land can be a risky investment, and it is subject to the same risks as investing in cryptocurrencies or NFTs. To enter it, people create an account, log in, talk with friends, and see the world. If they’re interested in real estate, they also look at what blocks of land are available.
- The Sandbox also features a marketplace, where you can see all the users’ listings, including LAND NFTs, but each land is connected to OpenSea.
- Every asset within the metaverse is, strictly speaking, a piece of code representing a non-fungible token (NFT) written into the blockchain.
- You will need a MetaMask crypto wallet to connect these metaverses and buy a plot of virtual real estate.
- These two platforms run on Ethereum, a blockchain that powers financial services.
These assets can include virtual currencies, virtual goods, and most importantly, virtual land. The ownership and development of virtual land within the metaverse can be a lucrative venture, as it allows individuals or businesses to create and monetize unique virtual experiences. It may seem silly that people buy plots of land that do not exist physically, but investors do this for a good reason. Virtual real estate increases in value as more people buy the available assets. For example, a plot of Decentraland land that sold for $20 in 2017 is now well over $15,000.
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Samsung launched a metaverse store location known as Samsung 837X, Adidas purchased a plot intended for exclusive brand content, and Atari owns virtual land where people can play their video games. Real estate marketplaces provide the same comparative information for each plot, which allows you to make informed purchasing decisions. In real life, we use deeds and titles to prove ownership of the land we own.
Why Buy Real Estate in the Metaverse?
Similar to the real world, location plays an important role in determining value. For example, blocks located next to a famous company or celebrity often go for a premium. Metaverse real estate (also known as digital real estate and virtual real estate) is made up of parcels of land in a virtual, interactive world – simply put, pixels on a computer. People buy and sell this land with cryptocurrencies, generally as an investment. It’s exciting to think that by the end of 2022 metaverse real estate is estimated to do $1 billion in transactions, but don’t let FOMO (fear of missing out) force you to make a snap decision. This space is not regulated like normal banking and investing — some people even compare it to the wild west.
- Metaverse real estate is quickly becoming a big business, with real-life companies like JP Morgan, HSBC, and Samsung getting in on the craze.
- The metaverse offers endless possibilities for creativity, social interaction, and even economic opportunities.
- Finding the right virtual world is crucial for a fulfilling metaverse experience and successful virtual land ownership.
- You will then see a map-like area showing land on Decentraland and you can then click on a plot you like.
- Buying land early could provide advantages before mainstream adoption.
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Alternatively, see our Master DeFi in 2022 course at Moralis Academy. Here, students receive video instructions conducted by industry experts for installing and navigating the world-leading Web3 wallet. In today’s article, I will be guiding you through the inner workings of virtual real estate as well as how you can invest in the virtual real estate industry. I will also be covering key topics in virtual real estate like its relationship with the Metaverse and its NFTs.
Final Thoughts: Is Virtual Real Estate a Good Investment?
Now that you know what metaverse land is and the benefits and risks that come with it, let’s dig deeper into how you can purchase one. Since there are two popular metaverses that offer NFT lands, we’ll walk you through the steps for both Decentraland and The Sandbox. Even if you don’t get ripped off, there are technical considerations that can increase your risk. You could lose access to your crypto wallet and lose the seed phase.
To purchase metaverse real estate, you need to follow these four steps. Once you have crypto in your wallet you can begin scouting properties on different platforms. The Sandbox and Decentraland both sell land directly, but on the Sandbox land is released by the company in waves, the most recent of which was on Dec. 2. Because of high demand, these waves often sell out in seconds, said Ryan Baue, cofounder of MetaMetric Solutions. Once you get a wallet, you will need to exchange U.S. dollars (or whatever currency you’re using) for a cryptocurrency.
Your best bet may be to buy land on a secondary marketplace like OpenSea. Searching for “the Sandbox” on OpenSea or searching and navigating to the Decentraland page on OpenSea will bring up plenty of parcels that are for sale. As the digital land grab accelerates in the metaverse, you may be wondering how you can get in on the action. However, if you haven’t funded your crypto wallet already, you can do so now.
Can you buy land in the Metaverse?
One of the intriguing aspects of the metaverse is the ability to own virtual land within these digital worlds. Just like owning real estate in the physical world, owning virtual land can have its own set of benefits and opportunities. It allows individuals or businesses to establish a presence in the metaverse, create unique experiences, and even monetize their virtual assets. As of 2022, the two most popular metaverse platforms that feature land NFTs are Decentraland and The Sandbox. Both of these platforms are Ethereum-based, and you will need their native token to purchase land and ether (ETH) to pay for the transactions’ gas fees. You will need a MetaMask crypto wallet to connect these metaverses and buy a plot of virtual real estate.
Each plot is turned into an NFT, which is sold either directly by the platform to a consumer, or by a secondary marketplace, the most popular of which is OpenSea. Once you buy a plot through an NFT, your sale is recorded on the blockchain of the given platform, and you become the sole owner of that piece of land within the metaverse. In conclusion, owning virtual land in the metaverse is an exciting venture filled with endless possibilities.
For users hoping to buy real estate in the metaverse, they must have a Web3 wallet to carry out the transaction. However, most metaverse applications offer compatibility with the world’s number one Web3 wallet, MetaMask. Moreover, for a step-by-step guide to setting up a MetaMask wallet, save our “MetaMask Tutorial” article for later.
By purchasing a metaverse real estate NFT plot, you are purchasing a one-of-a-kind asset that is unique to you and you alone. Unlike cookie-cutter homes that exist in every neighborhood, your metaverse plot is unlike any other. This allows you to develop and use the plot as you please and is only limited by your imagination. Once the purchase is approved by the seller, the land will appear in your crypto wallet. For security, Baue told Fortune that it’s important for landowners to back up their land onto a hardware wallet to protect against theft.
What are the risks of buying virtual land?
In the metaverse, we use blockchain technology (ledger) to keep track of ownership records in the form of an NFT, or non-fungible token. This refers to an asset that has a unique code and metadata with no other asset holding equal value. Assets are bought and sold with cryptocurrencies using blockchain technology, ensuring the transaction is incredibly secure and ownership cannot be counterfeited. The metaverse refers to a handful of platforms on the internet that have built interactive worlds complete with virtual entertainment and businesses.