The Metaverse may be Mark Zuckerberg’s vision of the future, but in the eyes of many, the future has already arrived. The term “Metaverse” was coined by science fiction author Neal Stephenson in his 1994 novel Snow Crash. Hiro Protagonist, the book’s protagonist, explores the virtual world in its pages.
In Second Life’s Metaverse, millions of people have also worked, played, and socialised since 2003. A virtual metaverse where people interact has been around for some time, even if the game’s heyday in the early 2000s and its blocky graphics are a far cry from the modern Metaverse vision laid out by companies like Meta and Microsoft.
Metaverse is Booming
Virtual world Decentraland is arguably the most popular of its kind, allowing users to buy and sell digital real estate, explore, interact, and even play games. The Decentraland Foundation was founded in 2015, and the project’s ICO in 2017 raised $26 million in its initial offering. While Decentraland has a lot to offer, the platform has drawn a lot of attention to the lucrative and ever-growing digital real estate market.
For $2,43 million, Metaverse Group, an NFT-based real estate company, purchased a plot of Decentraland land as part of its strategy to break into the digital fashion industry, according to media reports on Nov. 25.
What is blockchain’s “metaverse”?
A beginner’s guide to a virtual world that is accessible via the internet. Money in the metaverse is upending the real estate market.
We can expect commercial real estate in the metaverse to play a major role in the global real estate market over time. Toward the end of 2021, Tokens.com signed a letter of intent to acquire a 50 percent stake in a digital real estate portfolio owned by Metaverse Group, which intends to market these offerings as the world’s first REIT for digital real estate. It’s possible, according to the Metaverse Group, that a public listing will occur in the years 2022-2023.
Companies like the Metaverse Group, which specialise in digital property acquisition and sales, perform the same kinds of tasks as a traditional real estate firm. There is scepticism that investing in digital real estate will pay off in the long run, as prices rise and buyers appear enthralled. Brands are embracing blockchain metaverse ecosystems to create new digital experiences.
As a result of the coronavirus pandemic, interest in metaverse real estate continues to grow, especially as more people are logging on to the internet and becoming more inclined to socialise in virtual environments. Competitors in metaverse real estate include famous people who have not been shy about publicising their involvement in the digital real estate market.
This partnership with legendary rapper Snoop Dogg was announced by The Sandbox at the end of September. Paris Hilton signed a deal with Decentraland and Genies the following month to perform at the inaugural Metaverse Festival in late October as one of the festival’s main artists.
A look at the shift to virtual properties being made by real estate investors
Meta, formerly Facebook, and Microsoft aren’t the only companies taking note of the Metaverse’s growing popularity and eagerness to get involved. In contrast to the ups and downs of Bitcoin (BTC) and other cryptocurrencies, metaverse properties continue to grow in value despite the fluctuations. While NFTs and online environments have become increasingly popular, the metaverse’s limited supply of virtual land has kept virtual world prices high. Decentraland, for example, only has 90,000 land pockets.
In 2021, when the Metaverse will be fully operational, NFTs will be able to fulfil their full potential. It’s not uncommon for investment firms to even begin exploring the Metaverse, and they’re doing so in order to better understand how they can participate. The Metaverse will become more than a buzzword because of its high prices, popularity, and ease of purchasing and selling virtual land (as opposed to traditional real estate). As more and more people enter the metaverse, savvy investors and buyers who buy properties in prime locations will look very smart, similar to the domain name scramble that occurred in the early days of the internet.