Sci-fi stuff is done
“While the real world is far from perfect, today’s technological developments have made possible the existence of a virtual UTOPIA.”
Can you imagine buying land that you can only access via a computer? A computer serving as a gateway to your land in a virtual utopia. A land on a blockchain-based real estate economy accessible only digitally and having no physical existence is called virtual real estate. This utopian universe is commonly called “Metavers”.
Virtual real estate is a chapter straight out of a sci-fi movie turned into reality. Developments in the field of virtual reality have made the concept of virtual real estate possible. Previously only associated with video games and entertainment, it is now evolving into virtual real estate. Architectural visualization and virtual reality have come together to give people a chance to own virtual real estate.
This virtual real estate comes in the form of a non-fungible token or NFT, data stored on a blockchain. The popularity and evolution of virtual real estate is directly linked to the notoriety and popularity of NFT. Although NFTs have been around since 2011, they have recently become popular as a digital artwork “Everyday: The first 5000 days” by Beeple was auctioned by Christie’s for $69 million or Rs 501 crore. Earlier this year, Twitter founder Jack Dorsey’s first tweet was sold as an NFT for $2.9 million. NFT, which was previously used to buy art and music, is now used to buy virtual real estate.
“Plots of land can be purchased in virtual cities for as little as $10,000-100,000.”
The fear of missing out (FOMO) on an asset class that may explode in the future is also a driving factor, complemented by the fact that investing in virtual real estate is very cheap compared to real estate. purchase of land in reality. Plots of land can be purchased in virtual towns for as little as $10-100,000. Investing in virtual real estate is compared to the first investments in Bitcoin when it had just entered the markets in the early 2010s. Others have drawn a comparison between owning virtual land and owning of domain addresses in the early days of the Internet.
Developments in VR gadgets have made virtual reality more accessible and enjoyable. Apple is working on a VR & AR based mixed reality headset which it plans to launch by 2025. These kinds of innovations can make the virtual world more accessible and make it the next hotspot for entertainment and interaction.
Companies like Somnium Space, Sandbox. Cryptovoxels, Decentraland and many more are major players investing in the virtual real estate boom. Since the creation of the concept, Decentraland has been a major player in the market. His ideas gained traction when people started buying large amounts of land and instantly made nearly 500% profit.
Decentraland sells plots of land as NFTs registered on the Ethereum blockchain. He developed his cryptocurrency MANA. This digital currency can be purchased and traded through Coinbase and some other apps. The company employs a team of 3D animators dedicated to the development of these virtual terrain tracks.
Decentraland is also developing a virtual city the size of Washington DC called Genesis. The company recorded the biggest land sale in its history at its Terraform event when a piece of land was sold for $572,000. The company aims to develop a metropolitan area with shopping malls, casinos, hotels, restaurants, etc. Video game developer Atari is collaborate with Decentraland to develop a world-class virtual casino in Genesis.
Once developed, people will be able to walk around, meet, play, watch concerts and engage in many activities in a virtual setting using VR gadgets. The purpose of entertainment will be well served in such environments. It will generate another market around the sale/purchase and development of virtual real estate.
Investors have rallied to develop virtual real estate modeled on social media platforms such as Facebook, which would allow people to interact and socialize with each other. The land, which can be identified by a Cartesian coordinate system, will allow owners to develop a wide range of projects ranging from a static property to an interactive games arena.
Due to its existence on the blockchain, it is considered a legitimate investment class by investors. People think that in the future, virtual real estate will be more valuable than physical real estate. The relationship of virtual real estate with cryptocurrency and blockchain, a market that has grown in market capitalization. Some companies have developed their cryptocurrencies like Decentraland’s MANA for trading inside its Metaverse which already has a market capitalization of $225 million. Experts believe that due to this, the value of an investment in such an asset could increase exponentially.
As the concept of virtual reality develops, these lands could be leased to build complexes, shopping malls, casinos, etc., which would then be visited by virtual reality enthusiasts generating additional revenue. It has the potential to generate thousands of dollars one day through advances in virtual reality technology.