What is the Metaverse? Should You Buy Virtual Real Estate in the Metaverse? (Part 1)
Manage episode 314797536 series 2557320
What is the metaverse? Should you buy real estate in the metaverse? What does that even mean? What are some ways to monetize your property? Our metaverse expert will be enlightening us on what this is all about, and why it is important to at least start learning about it, and why it could be the next big thing in real estate.
You can read this entire episode here: https://bit.ly/3E1p4xJ
What does that mean to own land that doesn’t exist, in a magical world?
The ownership is via what’s called an NFT, which stands for non fungible token. It’s basically something that is digital, has scarcity, and is verifiably authentic on the blockchain. In addition to that, it’s also a way to verify ownership of a digital asset. Virtual land plots or parcels exist as entities on the blockchain, so your ownership is verifiable. That’s how it’s represented to the world. And the blockchain is a transparent public ledger. So everyone has visibility into it.
But I’m still not understanding why I should buy a piece of land that doesn’t exist.
There’s the appreciation component, because it exists as an NFT, you can also easily flip it on the blockchain. You can list it for sale on different entity marketplaces, the most popular and the largest being Opensea, kind of like the eBay of NFT’s.
In addition to the appreciation, the fact that it’s easily transferable, or sellable, other reasons to purchase an own virtual real estate are that you can do much more with it in the metaverse than you can in the real world. For instance, you can advertise on it. You can advertise your own company, unlike the physical world, anyone in the world that has an internet connection is able to put eyes on those advertisements as they explore the metaverse and they happen upon your property and your billboards. The exposure opportunity is much higher. You can also rent out your property to, let’s say, people that want to host events on it. You can design and build any space, any environment that you can imagine. Unlike the real world where there are constraints.
There are highly influential figures, celebrities, musicians that have bought up a lot of land in some of these Metaverse projects. Snoop Dogg is one example. He owns a massive section of land in the Sandbox. He has created what’s called the Snoop Verse. It’s basically a metaverse within the metaverse specific to Snoop Dogg, where he hosts live concerts where you can watch them as your avatar with other avatars and get access to other exclusive opportunities like NFT drops, play in the Snoop Dogg casino, check out his 200 car virtual car collection, get higher staking rewards on your tokens. Parcels adjacent to Snoop’s property, I think there is a string of three adjacent land parcels, if you take the minimum price $13,000 times three, you’d get $39,000. But those sold for $450,000, more than 10x the minimum price for land parcel in the Sandbox because of the proximity to this highly influential celebrity.
Why is it worth 10x the price of minimum real estate values? Because Snoop is going to attract so much traffic to his land area, you are therefore going to get a lot more traffic to your plot of land, and so you’re going to get more eyes on it. Therefore, the advertising potential is higher, or the number of interactions you can expect on your property are much higher. You can also create games, you can rent it out, you can advertise on it. There’s no overhead costs, no insurance, no decay, no management. You don't need to clean the sheets. You don't need to vacuum it.
Paul’s Signal Group: https://bit.ly/3q0DRUh