Home Sweet Home in the Metaverse
“Location, location, location” takes on new meaning when it comes to buying real estate in the metaverse.
As more consumers and investors across the globe flock to the metaverse—a virtual environment where virtually anything that takes place in the “real world” can also occur—virtual land is hotter than ever. Real estate investors are just beginning to see the potential of this digital realm and are staking their claim.
According to crypto asset management firm Grayscale, goods and services in the metaverse represent a staggering $1 trillion a year revenue opportunity. Recent virtual land deals within the metaverse have sold for more than $2 million, including Metaverse Group’s $2.4-plus-million land purchase and a $2.3 million sale on Axie Infinity. Bloomberg Intelligence reports that this alternative universe could notch $800 billion by 2024.
Following on the heels of Facebook’s plans to transition to Meta, more and more people are connecting in this digital universe—listening to music, working, working out, taking classes—and more investors are getting ready for a virtual land explosion. They are using cryptocurrency to purchase real estate, including shopping malls, casinos, arts venues and more.
Experts think that the metaverse will represent a productive economy that is integrated into our everyday lives in the near future. Investors seem to agree. The blockchain company Tokens.com recently acquired 50 percent of Metaverse group, a virtual real estate company with headquarters in “Decentraland,” the first fully decentralized world. Facebook’s plans to spend $10 billion on the metaverse this year alone have also encouraged new investors.
Presently, investors are limited to a small but growing number of companies for buying and selling virtual real estate—and every agency comes with its own cryptocurrency. For example, Decentraland requires the use of “mana” for all digital sales, and this crypto itself is on the rise.
While the best-known metaverses are now in the gaming world, real estate may be the next big thing in this parallel universe. “Location, location, location” can now be virtually anywhere in the universe.