September 30, 2022
  • September 30, 2022

Metaverse land: how risky is real estate business in the crypto world?

By on May 20, 2022 0

Land as a fixed asset may not just be an option in the real world. Metaverse is also quickly becoming a destination for real estate investments that mimic real estate investments, with options to monetize your investments through rentals and more. Celebrities have already been foraying into buying virtual real estate on the metaverse for quite some time and many crypto fans are exploring the space with token investments.

Experts also predict that metaverse real estate will be the next big thing in the crypto world. Arijit Mukherjee, founder of Yunometa, told Business Today. “Buying land in the metaverse could well be the next big thing for the crypto industry, with great potential for high returns for those entering now rather than later. To put it simply, think of buying land in the metaverse the same way you would buy an NFT that gives you a deed to your virtual land. We see plots of land from entities such as Decentraland and The Sandbox where early buyers have raised huge sums by selling properties in the surrounding area. Just like in the real world, location and timing are key when it comes to profiting from virtual real estate. The scope and potential of this will continue to grow with each passing day.

But what are the risks? Pratik Gauri, 5ire Founder suggests:

“It’s critical for anyone investing in real estate in the Metaverse to understand that the primary sources of value that apply to real-world properties don’t apply in the Metaverse, which means your virtual land may not increase in value. As real estate in the physical world, two main elements believed to give metaverse real estate its value are scarcity and location: the same two fundamentals of physical real estate. However, unlike real estate in the physical world, we are not bound by the economics of physical locations. In this case, the main thing to do is to consider metaverse real estate as a crypto asset and be aware of the expected volatility of any crypto asset. This is something a traditional physical asset investor will have to learn to earn at this table. Have the mindset of someone who understands scarcity economics and moves quickly to take advantage of market conditions.

Land of Metavesrse: All you need to know

What is Metaverse Earth?

Metaverse land, better understood as NFT (Non-Fungible Token) land, is a digital area that can be acquired in any Metaverse project.

Metaverse projects divide the project area into smaller pieces and sell each piece individually. Because these lands are NFTs, proving their authenticity and ownership is simple as they are part of a blockchain network.

What can you buy them with?

Usually, NFT land is sold instead of cryptocurrencies, but lately several Metaverse companies are also accepting fiat currency in exchange for land in their project.

What is unique in metaverse land?

The Metaverse terrain offers the owner a 3D landscape to explore. A virtual property owner may lease their virtual property for third party advertising purposes. In recent times, many artists have also conducted their concerts in the Metaverse. In this case, users can also rent their land to conduct the concert. In short, anything a person can do with land in real life (other than grow crops) a crypto enthusiast can do with their metaverse land.

Easy steps to buy land in the metaverse

1.Get a cryptocurrency wallet

To be able to buy land on a metaverse project, potential buyers need cryptocurrency wallets that they can connect to the metaverse project. The preferred crypto wallet is MetaMask.

2. Choose the metaverse project

Potential buyers must decide on which project they would buy land. Some popular options are Decentraland, Sandbox, Axie Infinity, etc.

3. Create an account on the metaverse project

In the next step, potential buyers must create an account on the metaverse project.

4. Link your wallet to the metaverse project

This is the penultimate step in purchasing land on the Metaverse. To be able to buy land, potential buyers must link their crypto wallet to their metaverse project and add cryptocurrencies to it.

5. Choose a property

Once the potential buyer has connected their wallet to their account on the metaverse, they can start searching for potential land and properties to buy. Land can be purchased directly from the project or from a reseller.

Also Read: Is Musk the Target of the Left’s Political Conspiracy? He means it – BusinessToday

Also read: Buy a TAG Heuer now, with crypto – BusinessToday

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