5 Things You Should Know About Buying Land in the Metaverse
The metaverse refers to VR spaces with characteristics and uses similar to areas in the physical world. People’s avatars can inhabit these spaces and perform many of the same activities they do in real life. Examples could include working, attending school, enjoying entertainment, conducting business, and buying land.
Five Essential Facts About Buying Land in the Metaverse
Such celebrities and businesses as Snoop Dog, JP Morgan, and Samsung have already made purchases. Before you join them, learn five essential facts about buying land in the metaverse.
Metaverse Land Can Offer Utility
People or businesses have two main reasons to purchase metaverse land:
- Establish a home base: Some people consider a metaverse home as something similar to owning a website on the internet. It offers a home address to direct others to when they want to find you. It also gives you a place to develop and express your personality or mission.
- Speculate on property values: Some people purchase land in the metaverse because they hope the value will appreciate and allow them to sell at a profit. Naturally, buyers take a risk when speculating on virtual land values.
Most Virtual Land Sells for Crypto
In the real world, people buy physical land with their country’s currency, like dollars or euros. Typically, virtual land sells for cryptocurrency. The type of cryptocurrency can vary by platform. Thus, people will need to acquire crypto and a digital wallet before they can purchase land on a VR world platform.
Land Sales Come From Platforms and Third Parties
Metaverse platforms offer land directly. Landowners may also choose to sell land through third-party platforms. Two examples of virtual real estate companies include opensea.io and nonfungible.com. These platforms provide features for property listings, price negotiation, and completing the transaction.
VR Land Buyers Face Risks
Some VR land values have appreciated rapidly, making investments appear attractive. However, buyers should understand the risks, such as sudden depreciation or the entire platform failing. Also, buyers don’t enjoy the protected and regulated market they do when purchasing physical land. Sometimes, scammers try to fool buyers into scam purchases, and buyers don’t have much protection.
The Value of Land May Depend on the Future of the Metaverse
In the physical world, the land value may depend upon scarcity or the land’s development or location. Different factors may impact the demand for metaverse land. For instance, virtual land investors have made big bets on the future success of a platform and the entire metaverse when they purchased property.
Right now, nobody can say if the metaverse will evolve into a force like social media or streaming videos or become another passing fad. Also, nobody can predict if a particular platform will grow into the next Facebook or fall out of fashion like Myspace.
Is This the Best Time to Buy Metaverse Land?
Timing a VR land purchase depends on the market and the buyer’s goals. VR land buys for a particular purpose probably offer the safest bet. For instance, a virtual store can generate revenue and profit. The buyer will give the land utility, which may help support its value.
For more risky speculative purchases, the timing gets tougher. Citibank published an optimistic report that predicted significant growth within the next five years. Other sources disagree and call metaverse land a risky crypto asset. Prospective buyers should gather information from several credible sources to help them inform decisions about what and when to buy.