Science fiction stuff is made of
“While the real world is far from perfect, technological developments have made the existence of a virtual UTOPIA possible.”
Can you imagine buying land that you can only access through a computer? A computer serving as a gateway to your earth in a virtual utopia. A piece of land on a blockchain-based real estate economy that is only digitally accessible and has no physical existence is called virtual real estate. This utopian universe is popularly called “Metaverse”.
Virtual real estate is a chapter straight out of a sci-fi movie come true. Developments in the field of virtual reality have made the concept of virtual real estate possible. Previously, only associated with video games and entertainment, it is now evolving into virtual real estate. Architectural visualization and virtual reality have come together to give people a chance to own virtual real estate.
This virtual real estate element comes in the form of a non-fungible token or NFT, a piece of data stored on a blockchain. The popularity and evolution of virtual real estate is directly linked to the notoriety and popularity of NFT. Although NFTs have been around since 2011, they have recently become popular as a “Everyday: The First 5,000 Days” digital art piece of Beeple was auctioned off by Christie’s for $ 69 million or 501 crore. of Rs. Earlier this year, the first tweet from Twitter founder Jack Dorsey was sold as NFT for $ 2.9 million. NFT, which was previously used to buy art and music, is now used to buy virtual real estate.
“Plots of land can be purchased in virtual cities for as little as $ 10 to $ 100,000.”
The fear of missing out (FOMO) an asset class that may explode in the future is also a driving factor complemented by the fact that investing in virtual real estate is very cheap compared to buying land in reality . Plots of land can be purchased in virtual cities for as little as $ 10 to $ 100,000. Investing in virtual real estate is compared to the initial investment in Bitcoin when it had just entered the markets in the early 2010s. Others have drawn a comparison between owning virtual land and owning of domain addresses in the early days of the Internet.
Developments in VR gadgets have made virtual reality more accessible and more enjoyable. Apple is working on a mixed reality headset based on virtual reality and augmented reality, which it plans to release by 2025. These types of innovations can make the virtual world more accessible and make it the next entertainment hotspot. and interaction.
Companies like Somnium Space, Sandbox. Cryptovoxels, Decentraland, etc. are major players investing in the virtual real estate boom. Since the concept was created, Decentraland has been a major player in the market. His ideas gained traction when people started buying large amounts of land and instantly made almost 500% profit.
Decentraland sells plots of land as registered NFTs on the Ethereum blockchain. He developed his MANA cryptocurrency. This digital currency can be bought and traded through Coinbase and other apps. The company employs a team of 3D animators dedicated to the development of these virtual field tracks.
Decentraland is also developing a virtual city the size of Washington DC called Genesis. The company recorded the largest land sale in the company’s history during its Terraform event when a land was sold for $ 572,000. The company aims to develop a metropolitan area with shopping malls, casinos, hotels, restaurants, etc. Video game developer Atari is collaborating with Decentraland to develop a world-class virtual casino at Genesis.
Once developed, people will be able to walk, meet, play, watch concerts, and engage in many activities in a virtual setting using VR gadgets. The purpose of entertainment will be well served in such environments. It will generate another market revolving around the sale / purchase and development of virtual real estate.
Investors rallied to develop virtual real estate modeled on social media platforms such as Facebook, which would allow people to interact and socialize with each other. The terrain, which can be identified by a Cartesian coordinate system, will allow homeowners to develop a wide range of projects ranging from a static property to an interactive play arena.
Due to its existence on the blockchain, it is considered a legitimate investment class by investors. People believe that virtual real estate will be more valuable in the future than physical real estate. The relationship of virtual real estate with cryptocurrency and blockchain, a market that has increased its market capitalization. Some companies have developed their cryptocurrencies like Decentraland’s MANA to trade inside its Metaverse which already has a market cap of $ 225 million. Experts believe that due to this, the value of an investment in such an asset could increase exponentially.
As the concept of virtual reality develops, these lands could be leased to build complexes, shopping malls, casinos, etc., which would then be visited by VR enthusiasts generating additional income. It has the potential to generate thousands of dollars someday thanks to advancements in virtual reality technology.
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