The Virtual Real Estate Boom
Finally, trends in supply and demand form the basis of the modern economy. Each good or service has its
supply and demand patterns. These are based on utility, price, and consumer preference. As the
popularity of NFTs continues to increase, virtual real estate has become lucrative for people in the
crypto space and The Virtual Real Estate Boom.
It is now commonplace for investors to pay billions of dollars to buy virtual lands in the metaverse.
International musician Snoop Dogg invested $450,000 to buy real estate in the Sandbox. A blockchain
company tokens.com invested $2.43 million to buy virtual land in Decentraland. The flurry of activities
drives the price of virtual real estate up, as there is a limit to the available land on the
Understanding Augmented and Virtual Reality:
In 2021, an application beats Amazon to become the most downloaded application. As a result of the increased gamification of its app, she surpassed Amazon to become the most downloaded shopping app in the US.
Info with The Virtual Real Estate Boom
Gamification is important for mobilizing customers and the secret source for gamification is AR.
Deploying animated filters gets customers excited about trying new things and exploring their interests
How can we meet and shake hands from opposite sides of the world? How can we build prototypes
without the actual building? Faster and more robust 5G internet has opened up new frontiers for
business.
With virtual reality you put on a headset and you are completely immersed in another world that looks
and feels very real.
Firstly The Virtual Real Estate Boom
With augmented reality you are not fully immersed in a virtual world using a headset using your phone
or iPad, you can still see the world around you. Visual images are being overlaid onto your screen. Can I
shock you? You are already using augmented reality without recognizing it. The QR codes you can too
pay for items and snap filters are also augmented reality. AR helps enhance the experience of the world
you live in now.
The Role of NFTs in Virtual Real Estate
The metaverse integrates the virtual world with the real world. The goal is to design a virtual space
where people can interact and have interesting experiences. In these environments, cryptocurrencies
and NFTs can be used to trade. In the past, the utility of NFTs was limited. Now they can also be used to
buy virtual real estate from platforms like OpenSea. NFTs, help to transfer ownership from the seller to
the buyer.
Monetizing Virtual Real Estate
People who own virtual land on the metaverse can use their real estate in different ways:
The Virtual Real Estate Boom Social interactions-
Social interactions- One of the main goals of the metaverse is to be a collaborative virtual platform.
There are most people can interact with one another. People can socialize, hold community meetings, musical
concerts, etc.
Advertising products and services — Virtual real estate in a place with a high density of visitors can be
used for advertising. The promotions can be seen by people who pass by or visit.
The Virtual Real Estate Boom Gaming platforms —
In November 2021, Axie Infinity sold nine parcels of land for $1.5 billion. These
locations can host gaming wars where people get rewarded for investing in NFTs. The players buy
gaming weapons, outfits, etc
Hosting concerts or carnivals —
Real estate in the metaverse can be used to host musical carnivals.
Musicians come around to showcase their talents and earn. Companies in the metaverse also look to
invest in experiences where they can have virtual fashion shows. This has opened the doors for artists to
earn more for their work.
Factors that affect the price of virtual real estate
Why did Snoop decide to buy real estate in Sandbox metaverse for $450,000? If you look closely, you
would notice that there are many factors that determine value in the metaverse.
The utility of the land-
Virtual lands have many utilities. As a result, the price it can command depends
on its purpose. Some lands are well located for advertising. If you own such land, you can host events or
advertise products or services. Last year, Travis Scott pulled an audience of 27.7 million visitors to
concerts within Fortnite.
The virtual platform:
The popularity of the platform and the blockchain on which it is based are some
factors that affect the value of virtual land. Some of the characteristics of the underlying blockchain
affect the virtual environment. In addition, demand and supply economics also come into play in the
metaverse. The demand for plots in Decentraland and The Sandbox is greater than supply. As a result,
investors pay huge amounts to be a part of the platform.
Market speculation:
Virtual real estate is booming. As a result, some people speculate on the prices and
make a profit by flipping virtual real estate. The sandbox has the highest number of active trades with a
recent total trading volume of $86 million. Decentraland has over $50 million in total sales. This includes
land, avatars, and wearables. At a point, a patch of land sold for $572,000.
Land, avatars, and buildings can be exchanged as NFTs in transactions worth thousands of dollars. So, art
is only a part of the new economy of the metaverse.
