Metaverse Properties: A Real Opportunity?

August 9, 2022

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.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

How to secure a rented home if you used to pay rent up front

One change that has come into effect under the Renters’ Rights Act (RRA) is that landlords may no longer accept more than one month’s rent in advance of a tenancy beginning. Previously, there was no limit to how much rent tenants could pay up front to secure a property, which was particularly helpful in certain…
Read More →
Kerb appeal
Breaking News

Whoever Leads Britain Next Must Focus on Growth, Housing and Opportunity

Neil Louth – Group Executive Director, LRG and CEO, Acorn Group From my perspective, the question is less about who occupies Number 10 and more about what they do once they get there. Whether it is Sir Keir Starmer continuing in office, Andy Burnham emerging as a future challenger, or someone else entirely, the next…
Read More →
Breaking News

Biggest Shake-up of Home Buying in Decades

Families and first-time buyers set to save time, money, and stress under major changes to the homebuying process – supporting the next generation and those locked out by a slow and unfair system New sales packs to ensure buyers have the information they need upfront, earlier binding agreements, and digital tools will halve the number…
Read More →
Breaking News

More than half of home movers try D.AI.Y

but 38% say it gave them bad advice   The latest research from Yopa has found that 57% of home movers have engaged in D.AI.Y, to help maintain, repair and improve their homes, although more than a third have been given advice that later turned out to be incorrect. Yopa surveyed recent homebuyers to understand…
Read More →
Breaking News

Home buying journey is about to become unrecognisable

Claire Van der Zant, CEO of Novus Strategy, comments on the Government’s homebuying reform “The industry has been very vocal in its demands for mandation and this is the most impactful example yet of government intervention that will drive the change everyone has been asking for. What it will mean is the complete reorganisation of…
Read More →
bank of england interest rate
Breaking News

Bank of England holds interest rates at 3.75%

The Bank of England has announced its decision to hold the base rate at 3.75%. This decision comes as a result of wider economic uncertainty and inflation (CPI) increasing to 3.3% in March and remaining above the Bank’s 2.0% target. Here are some thoughts from within the property industry.   Matt Smith, Rightmove’s mortgage expert…
Read More →