Metaverse Properties: A Real Opportunity?
Metaverse and cryptocurrencies have been the talk of the town since the rise of Bitcoin and even more for mainstream audiences since Mark Zuckerberg’s Meta project announcements. The concept of a virtual world captivates people and opens unlimited possibilities compared to a limited physical world. In this regard, real estate faces an issue, the number of properties you can build is limited to available space. Plus, there are more people on Earth every year.
Estate is supposed to be one of the most stable markets you can invest in, while cryptocurrencies and the metaverse are reputed to be highly volatile. So, what happens if you mix these two markets together?
Is buying a property in the metaverse a real opportunity, or is it like playing at a real money online casino? Let us tell you more about this new type of property and what it means for the future of ownership.
How Do Metaverse Properties work?
The metaverse is represented by two big networks, Decentraland (MANA) and The Sandbox (SAND). These virtual worlds are accessible like video games with VR compatibility, and you could compare them to The Sims, but with real money used for any activity that occurs.
For instance, you can buy real estate in The Sandbox using Ethereum (ETH). Why Ethereum? That’s because the game and its token, SAND, were built using Ethereum. Ethereum is one of the most stable cryptocurrencies and has been a steady source of income for crypto investors around the world, thanks to Smart Contracts.
What Are Smart Contracts?
Ethereum’s Smart Contracts use special accounts not controlled by a user to create contracts that are enforced when the stated transaction is performed to this account by the parties. It can concern an NFT, a physical product, etc. You can compare it to a virtual lawyer acting as a mediator for exchanging goods (in this case, virtual goods).
The Metaverse Is Booming!
The metaverse concept proves particularly popular with more and more people investing in it. However, it’s still a recent market filled with uncertainties. Even if big brands and tech personalities try to sell it in the future, it’s impossible to tell if the property you buy in Decentraland will be worth something.
In a few years, these networks may disappear like social media have (remember, MySpace?), but Facebook’s CEO projects may change things.
You May Also Enjoy
1 in 7 consider moving home to manage cooling costs in hotter weather
UK property fall-throughs cost estate agents estimated £2.8m every day
Where are the UK’s most Instagrammable streets?
Northern Ireland emerging as one of the UK’s most attractive long-term rental investments
Homebuyers demand same-day conveyancing updates
