Virtual real estate has taken over the world. Millions across the globe are paying for real estate — just not in the actual world. The metaverse revolutionizes real estate by giving investors a chance to be virtual landlords and live next to famous celebrities online. Will decentralized technologies popularize virtual properties more than real-world properties? Only time will tell but with the metaverse growing quickly — digital real estate seems to be here to stay.
How does the Metaverse work?
The Metaverse works like any other network or website. There are many companies connected to the Metaverse. Each company creates its own virtual realms for people to play games, buy and sell things, and interact with others. Users can create their digital avatars and live in the digital world as they do in the real world. Although this concept is not new in the gaming world, the Metaverse takes it one step further by forming a decentralized network that allows both users and companies to earn profits in their virtual reality. The Metaverse can include everything from digital shopping malls to digital homes.
How did the Metaverse start?
Tech insiders have dubbed the decentralized world of real estate the “Metaverse” as it involves locating land in the online world. The term “Metaverse” was created in 1994 by author Neal Stephenson, however, it started as an online Second Life world in 2013. The game had millions of players where people interacted virtually. The world of the Metaverse then expanded with Mark Zuckerberg becoming famous for using it in his social networking rebranding. He changed the corporate name of Facebook to Meta Platforms after deciding to cross over to the virtual world of digital assets.
The Decentraland Foundation was built in 2015 as a metaverse for users to play games and buy and sell digital estate globally. Decentraland was the start of the digital real estate industry with an initial coin offering amounting growing to over $26 million.
How the Metaverse is revolutionizing the real estate industry
Real estate companies are using the Metaverse to grow and help investors earn from businesses in the real world. A notable real estate-focused company called The Metaverse Group recently sold a plot of digital real estate in Decentraland for over $2.43 million. The owner of this slot was situated near Fashion Street and Louis Vuitton, meaning the owner could be Louis Vuitton’s virtual landlord — raking up profits for the user.
In 2021, the famous Web 3 investor company Tokens.com initiated a plan to invest a substantial amount in digital real estate to create the first real estate investment trust for digital real estate. What this means is digital property companies such as The Metaverse Group are trading real estate and operating as a traditional “real world” real estate company.
The future of Metaverse real estate
Investing in real estate has always been an excellent way to make passive income. The Metaverse is no different. Although Metaverse prices are considerably high at the moment, the interest in metaverse real estate property is growing too. The growth is seen to be a result of key digital players entering the metaverse, as well the growing number of online users that occurred due to the pandemic. Celebrities such as Snoop Dogg and Paris Hilton have been public about their real estate activity, with investors paying substantial amounts to own digital properties near the celebrities’ digital homes.
Should you invest in Metaverse real estate?
Whether you are a beginner to the Metaverse and crypto world or an expert in crypto investments, the Metaverse could be a good opportunity for you. If you have the money and are not afraid to take risks and try something new, the digital world of the Metaverse is for you.
The Metaverse allows you to have the same experience as you do in the real world with regard to real estate. You can buy property in some of the most lucrative digital areas, live next to celebrities and brands and maybe even earn money to buy more property in the real world. Once you own digital land, you could also make money by leasing it out to another user or selling ads.
People are paying more for cryptocurrency and digital world assets, and the Metaverse is no different. With millions of dollars being put into the Metaverse and a growing number of investors, the Metaverse real estate trend is here to stay.
Learn more about the Metaverse by keeping up with our blog where we post a weekly Metaverse-related article, along with many other crypto and investment topics. If you’re interested in growing your crypto and taking your trading to a whole new level, register on Your Friendly Crypto Exchange, IXFI.
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