Metaverse Real Estate: Another Exciting Crypto Market That Has Arrived | Cryptocurrency
|Metaverse Real Estate: Another Exciting Crypto Market That Has Arrived | Cryptocurrency|
Metaverse Real Estate: Another Crazy Crypto Market Whose Time Has Come
We've all heard about the guy who spent millions to believe in a blockchain video game called Axi Infinity. To whom it will eventually sell and why that person would want it, is anyone's guess. The profitability of that purchase depends on how popular Axie is going forward. And that land can be monetized or not.
But here's the thing - something can happen in this virtual real estate market. This is new. It's booming. The language for this is still being developed, to convince investors and not just coders glued to computers that it's not like trading Pokémon cards.
"It's not crazy," says Battis Samadian, founder of Space, a Metaverse startup. They raised $7 million in an initial round of founding in December.
Creating a map and creating coordinates for 3D experiences requires a virtual "land". Standardization and protocols are currently being created by a coalition of Metaverse developers to fuse the various maps of the virtual world and create this first 3D Internet experience, which will be the standard form of the future Metaverse.
“Think of what you do on your land, the same thing you are doing when building a website. Your goal with a website is essentially the same as a piece of land. You are building a 3D website that is a Selling is an immersive experience whether it is a purchase, an event, a class, or a subscription service,” says Samadian.
Bill Gates has spoken about it
Everyone's favorite virologist, Bill Gates recently predicted that by 2026, we'll have meetings on Meta (FB) instead of Zoom and we'll pay for our avatar skins. Someone will own that office space. We'll probably have to pay them for rent.
In his year-end remarks posted on his Gatesnotes blog on December 21, he said, "The idea is that you will eventually use your avatar to meet people in a virtual space, who would rather be in a real room with them." reiterates the sentiment."
To do this, you'll need wearable technology like an animatronic and most likely virtual reality glasses to accurately capture your expressions, body language and the quality of your voice, Gates said.
This stuff doesn't exist yet, but for some reason, the place where it's all supposed to happen — a 3D internet with its own real estate market — is now on every cryptocurrency investor's radar.
Companies are coming forward to serve this market. The real estate world of cybersecurity is sure to hit nearly $500 million in 2021. This year, 2022, began with more than $80 million in sales in so-called Metaverse real estate, which includes adult-themed properties — eg, porn-ish hangouts .
Even Snoop Dogg is joining in, tying the sandbox protocol.
"It's a big time right now and it's not anywhere near your house or any of our homes," CBNC Squawk Box host Andrew Ross Sorkin said in a segment on it aired February 1. ,
Metaverse Real Estate Use Case
Let's say you bought a plot of land in a blockchain game, and paid $5,000 for it. In theory, how would you monetize it?
New use cases are emerging everyday, but here is a list given to me by Srini Anala, CEO of Bulliverse, a metaverse game that has its own non-fungible tokens for use in its virtual gamer world. Some thoughts from Anna:
- Host events and charge a rental fee;
- Allow banners/advertisements and earn advertising revenue;
- Host games and receive a commission from game revenue;
- Early buyers get early access to asset sales and new releases on the Metaverse, creating a major alpha in their NFT portfolio;
- A well situated land can fetch more revenue. For example, land hosting a volleyball match is more valuable when it is part of a platform known for such things. Landlords can purchase property such as volleyball courts and host e-games;
- The resale value of digital land can be higher when the land is either close to a major digital landmark or when there is proven to be a high utility value generating passive income through the above strategies.
Some of this is still a head scratch for retail crypto currency investors who are more interested in buying tokens than using these platforms. For example, you may be invested in a Tesla TSLA, but not Drive One. You understand the value of Tesla and its Rockstar CEO, so you buy the stock. The same goes with the metaverse.
For now, it looks like much of the above can be done in old school cyberspace. Who Needs the 3D Metaverse?
This can be done in real life as well, although real-world bricks and mortar and steel cost a lot more than 0s and 1s.
"Every interruption seems crazy in the beginning until it happens," says Anla. “These are very early days for this market, and there will always be some downsides and corrections along the way, with many big organizations like Adidas, Samsung and even JP Morgan embracing it. New revenues for virtual land and utility models are emerging, and will continue to define how this space evolves over the next 5-10 years.”
So, you buy land, harvest resources, craft items and spells, and either sell, rent, or use items and spells to earn money, as in a blockchain game like Bolivars. And if the game progresses and the economy of the game makes sense then the demand for the land may increase and the property may appreciate more than what you paid for it. This was the method behind the record-breaking AXI land deal last year.
Keynote Speaker at the NFT LA Conference
Jeff Ziho Zirlin, Co-Founder of Axi Infinity,[+]© 2022 Bloomberg Finance LP.
"It always comes back to utility for me. What do I get from owning this piece of virtual land?" Yet another blockchain game, the only one where there are professional gamers who make a living at it, says Jesse Reich, CEO and co-founder of Splinterlands.
“When I have a house it gives me an opportunity to shelter my family. I need that shelter to protect me from the elements. I don't have the same requirements for a digital home,” Reich says. “So, I need this virtual real estate for entertainment or utility in an ecosystem… powered by NFTs. I think these are going to be the hardest form of money on the planet and will eventually surpass real estate ,” he says of the items that will be sold on your virtual plot, in Snoop's virtual nightclub.
Each Metaverse real estate has different use cases, typically where landlords have the rights to create and deploy content that provides services to players and users in the Metaverse.
“Owning land in the metaverse only has value if there are a lot of users and visiting your area,” says CEO Lukasz Lee, founder of Efin, a play-to-earn Metaverse game. “With users coming to your area, you have eyes where you can monetize with advertising or you can charge for participation. But with fewer users in the metaverse, you have very little value for the land there. It seems crazy because of the highly speculative nature of a piece of land… some of them are worth a lot more,” Lee says.
Metaverse Real Estate: Use Your Imagination
Education in the 3D Metaverse? Why not?
Factory floor tour organized from thousands of miles away? Yes. in real time.
Nightclubs and VIP hangouts like The Sims with A-listers? Of course.
I always think about the world of Caprica. Science fiction fans who were accustomed to revisiting Battlestar Galactica starring Edward James Olmos on the SyFy network may have seen the prequel series, Caprica.
On that fictitious planet, teens wear VR googles that are thin as pencils instead of clunky like the current Oculus headset, and take them to nightclubs with friends.
Today, when we do this, the characters in our avatar look like a character from Minecraft. But in the future, it will look more like the Caprica - a deeply faked copy of itself.
The Metaverse is like Atari football in the 1980s, where there were three players on the field who looked more like space invaders than people. Compare today to EA Sports Madden. It's going to happen with the metaverse, visually speaking. It's not going to look like Minecraft for long. It's going to look like a movie. It's probably a generation away, but it's a long bet of metaverse appeal.
The Effin Game trailer is a good example of a Caprica-style metaverse. A girl in a coffee shop is surfing her phone, finds a ring on the table where she is sitting, puts it on and - bam! - He is in a virtual world of trees and lakes and cute flying creatures. She sees her hand in play with the ring on.
It still looks game-ish.
Some of these games are beautiful works of art. If I had 8 hours to learn how to kill and play, I'd hop around Bolliver's Island for a while.
“Consumers are increasingly moving away from flat social/commerce environments and into fully immersive 3D spaces. And brands and investors are buying land in the metaverse to facilitate these experiences to meet customer demand. have been,” says Matthew Larby, founder and CEO of Realm, a play-to-earn metaverse selling NFTs.
“Location is going to be as important to real estate in the metaverse as it really is,” Larby says. "The purely digital nature of these locations provides the potential for superior customer service, from hyper-personalization to real-life representatives who speak the customer's native language."
How are investors doing in the space?
The Roundhill Bull Metaverse (METV) exchange-traded fund, which trades more than 1 million shares daily, has been in a bear market this year. That's down more than 21% year-on-year. The Nasdaq is down nearly 7%.
The situation in Decentraland (MANA) is not much better. At the border of the bear zone, it is down 19%. Bitcoin is down just 2.9% YTD.
If you believe in the metaverse, maybe now is the time to put some money to work.
“The reason for all the hype lately is because people are speculating that they have invested in a specific Metaverse platform that has high potential that they will have a lot of users in the future,” says Li from Effin. “But because of the speculative nature of all this, property prices in the metaverse keep rising. If the specific metaverse you invest in is successful, and gets a lot of users, then investors who buy early will be seen as smart people with good foresight," says Lee. "We're still early. , The metaverse and virtual real estate are still very speculative."