How much do you know about the Metaverse?
Metaverse, a 3D virtual online world in public perception.
Through the “digital avatars” in the metaverse, people can increasingly use the virtual space on the metaverse to work, play, socialize and learn, and achieve an interactive experience with the world without leaving home in reality.
Since you are living, of course, you can’t live without a house – that’s right! Just like in the real world, the metaverse includes investing and making money, and one of the most popular ways of investing and spending in the metaverse is investing in digital real estate.
What can this digital real estate be used for? Metaverse explained that users can sell their digital plots to other users, or buy, sell, lease other virtual spaces, or use it to build virtual buildings.
In theory, there are two same principles that give land value to the metaverse and inflate the price of physical real estate: scarcity and location.
So is real estate in the Metaverse skyrocketing like real-world house prices? Not necessarily.
Digital real estate sales have been falling since last year.
At the peak of virtual real estate, some well-known metaverse platforms such as Sandbox, Decentraland, and Voxels saw more than $60 million in virtual land sales.
The average selling price for some virtual land peaked at $37,238 in February 2022. But as of Aug. 1, its cost had dropped to $5,163.
Likewise, the average selling price of digital properties on well-known platforms such as Sandbox dropped from about $35,500 in January to about $2,800 in August.
If we don’t understand it because we don’t have the long-term vision of investment and technology giants, then the complaints from billionaire and investor Mark Cuban can be said to be sharp. Mark Cuban YouTube channel Altcoin Daily covers a range of Metaverse-related topics, including the feasibility of buying virtual property in the metaverse. Experts have confided before this that investing in real estate is not suitable for the metaverse, because you can’t artificially introduce scarcity, but in reality, because of the limited amount of land, you can do it.
Indeed, Cuban may not be a fan of metaverse land. He still invests in a lot of metaverse-related industries. It can only be said that this boss still has certain expectations for the development of the metaverse.
Cuban himself also admitted that at present, the definition of metaverse is unclear, and it remains to be seen whether this technology will prosper or decline in the future.
The original intention of metaverse is to create a parallel virtual digital world independent of the real world, where people can interact through digital avatars, while connecting the virtual with reality through AR glasses and VR headsets.
But it still has a long way to go before it achieves real reality.
