Virtual land is one of the hottest new real estate investments in the world today. If you’re interested in buying land in the Metaverse, this guide is for you! In this article, we will teach you the basics of virtual land, how to buy it, and the benefits of owning virtual land.
So whether you’re a beginner or an experienced real estate investor, read on to learn everything you need to know about virtual land!
What is the Metaverse?
The Metaverse is a virtual world that exists on the Internet. It is a platform where users can create and share digital assets, including land. According to Gartner, by 2026, people will spend one hour per day in the Metaverse for work, shopping, education, social media, and entertainment.
So, what is a Metaverse exactly? It’s a virtual realm that emerges from the intersection of enhanced physical and digital reality. Put another way, it is not controlled by a single manufacturer and is device-independent. Instead, digital currencies and non-fungible tokens (NFTs) are used to create an independent virtual economy.
Because it necessitates many technologies and styles to operate, a Metaverse is a combinatorial breakthrough. Augmented reality (AR), flexible work methods, head-mounted displays (HMDs), an AR cloud, the Internet of Things (IoT), 5G, and artificial intelligence (AI) are all tech offerings that contribute.
Imagine a Metaverse as the next iteration of the Internet, with individual bulletin boards and independent online destinations as its foundations. Eventually, like in the case of a Metaverse, these destinations evolved into locations in a virtual shared space.
What Is Metaverse Land?
Metaverse land is a new form of real estate that is set to be huge in 2022. As the world transitions to a digital world, metaverse land will play an essential role in facilitating this transformation. Metaverse land is different from traditional land in a few key ways.
- Metaverse land is digital and can only be owned by users with the correct virtual assets.
- Metaverse land is non-fungible and can hold many different types of virtual assets.
- Metaverse land does not exist in a physical space – it exists entirely within the Metaverse platform.
Main reasons to buy virtual land in the Metaverse
There are several reasons why people are buying virtual lands in the Metaverse:
1. Make a profit
Virtual land is an attractive investment option because it has no physical reality. That said, investing in virtual land doesn’t come with the risks and challenges often associated with real estate investments. There are various ways to purchase virtual land – bidding, auctioning, or marketplace listings. The key is to research the options available and choose the one that best suits your needs. For example, if you’re looking for a property investment option, you might want to look for properties with high demand and good ratings from buyers’ feedback. Alternatively, if you’re interested in making a profit from virtual land purchases (and there’s always room for this!), consider purchasing parcels that boast significant returns on investment (ROI). By doing your due diligence before buying any virtual land parcel- whether big or small- you can be sure of securing a profitable investment!
2. Be a part of the metaverse experience
Metaverse is a digital world that allows users to own virtual land and participate in various online communities. It is fast becoming the go-to place for people looking for an immersive virtual reality experience. There are many benefits to owning virtual land, such as owning your property and being part of a community. Buying virtual land can also be a great way to invest in the future of this growing industry. However, ensure you do your research first – plenty of scams are masquerading as real estate deals! And remember: always read the terms and conditions before making any purchases!
3. Earn passive income
Virtual land is an investment that can offer several benefits, including the ability to make passive income. By owning virtual land, you can control how it’s used and earn money from it in various ways. There are many options available for making money from your land – leasing it out or selling products or services built on it to charge fees for using amenities on your property. However, the key is researching different possibilities and finding the one that best suits your needs. Whether you’re looking for short-term capital gains or long-term passive income growth, virtual land has a lot of potential waiting to be unlocked!
4. Advertising
Advertising is one of the most effective ways to reach and engage a broad audience. Businesses can place ads in different areas at different prices and dimensions (such as verticals, channels, etc.). Virtual land allows you to promote your business or product interactively. You can also create virtual stores where customers can purchase what you offer. So get creative! There are no boundaries to advertising – so go for it!
5. Provide services
There are many reasons why buying virtual land might be the perfect fit for your business. It doesn’t involve taxes or red tape – making it a straightforward and hassle-free process! Plus, you don’t have to worry about losing money on the investment, as virtual land is backed by real estate properties that you can purchase later. With all these benefits in mind, buying virtual land is the right decision for businesses of all sizes and niches. And if social media isn’t your cup of tea? You can still buy virtual land and connect with like-minded individuals worldwide without having to leave home!
What Are the Different Metaverse Land Types?
1. Centralized Metaverses Web 2.0
The Blockchain is incompatible with these classic centralized metaverses. The usage of an avatar that progresses throughout the Metaverse is also central to these metaverses. In the latest versions of popular games like Fortnite, Grand Theft Auto, and others, most implementations of the Web 2 Centralized Metaverses may be observed.
One may also observe instances of a digital marketplace where persons can pay for accessories for their avatar in these metaverses, which served as the foundation of the Web 3.0 space. To get items from the company’s store, Fortnite uses its digital currency, ‘V-Bucks.
2. The Centralized Metaverse for Web 3.0
The ability to develop interactions across multiple Blockchain Metaverses and digital assets may be found. This is the main advantage of Blockchain-based metaverses. For example, in primary and secondary markets, non-fungible tokens (NFTs) may be sold or transferred using cryptocurrencies. On the other hand, users’ data is managed by a third party. For example, ‘Earth2’ and ‘Meta’ are popular centralized blockchain metaverses.
3. Decentralized Metaverse of Web 3.0
With an emphasis on smart contracts, this Metaverse features a novel idea of “Decentralized Autonomous Organizations” (DAO). These contracts determine the rules inside each of these metaverses. The Metaverse’s most significant advantage is that it is based on the notion of “fractional ownership,” which means that one person or entity does not hold all the decision-making power.
Every decision affects every token holder. In addition, a DAO-based NFT collection called 99 Originals was launched by Logan Paul, a youtube celebrity, which offers particular practical benefits to the owner. Understanding how to buy metaverse property and what features to watch out for is essential since not all metaverses offer a DAO-based feature.
What Are The Risks Of Buying Land In The Metaverse?
There are a few risks associated with buying land in the Metaverse.
Metaverse properties are still a niche interest with a limited market
This could be the essential factor to remember when considering metaverse real estate. While it is a niche market with a fervent fanbase, it is nevertheless that. You have to realize that your market is small and may stay that way, just like developers who do nothing but build mega-mansions. That’s not a problem, but your investing strategy should adjust to reflect this.
NonFungible.com stated a total of 128,902 sales for metaverse properties (including avatars) during the previous 365 days for specific numbers as of December 21, 2021. In 2020, the National Association of Realtors reported that 5.64 million existing homes were sold. Despite this, there are still millions of dollars worth of virtual real estate parcels for sale, and practically every day, new big companies join the fray.
If a Metaverse shuts down, your investment will too
A metaverse property can vanish entirely if the platform fails financially, unlike real-world real estate, where you may always rely on the fact that you still own this piece of property. Members may vote when the closure is an option, but if there’s no money left to keep the platform operating, the individual who pays the bills has no qualms about simply cutting off the power. Remember, Second Life, one of the first metaverse platforms, has been up and running since 2003, so don’t let that worry you too much.
The Metaverse is not great for the real world
While walking around, it’s easy to forget that the Metaverse is an electricity- and computer-intense simulation of the actual world. However, metaverse platforms seek to become greener by employing more efficient, innovative programming, the cryptocurrencies that power them don’t. Bitcoin mining uses around 91 terawatt hours of power, or about 0.5% of all power usage worldwide. It is more energy than the whole nation of Finland (population of 5.5 million). That results in much pollution, more carbon in the atmosphere, and so on.
What To Consider Before Investing in Virtual Metaverse Land?
When buying land in the Metaverse, the price will always be a significant factor. However, don’t let this discourage you – land will always be more expensive in the Metaverse than on Earth. That said, it’s essential to shop around for the best deal. Understand the different property types and their associated costs. Be prepared to spend a few thousand dollars, but it’s worth it if you want a piece of virtual real estate. Do your research first so you know what you’re getting yourself into. Finally, read the Terms of Service and the Privacy Policy before purchasing. These documents will help you understand the land’s limitations and the terms of the sale.
Location is a factor in choosing a virtual land in the Metaverse, just like in the real world. As influential brands stake their claims on these virtual worlds, parcels in The Sandbox and Decentraland continue to increase in value. As a result, several early purchasers of properties near or nearby have made enormous profits from their purchases.
Look for regions with the potential for growth if you want to invest in metaverse real estate. Places where people might gather, will be more important than places with no indication. Plotting properties outside but inside undeveloped districts may be helpful. You may acquire these features at a good deal, develop them, and wait for the prices to rise.
Know the risks of virtual land investment. Real estate investments can go wrong, and so can Metaverse land investments. Remember that virtual world assets are not protected by property or physical laws and may be lost if you do not have the correct legal backing to protect them (a partnership agreement with a game company, for example).
Many metaverse landowners were also unprepared for how rapidly they could gain value as properties became more popular and desirable. The hype cycle often outstrips reality-based analysis in this space, especially regarding speculative assets like land.
Think about your long-term goals for the property before making an offer on it, and read feedback on similar sales (and listings) to understand how prices are changing and what terms buyers want to make an informed offer. Finally, ensure that any agreement with the seller has all the terms in writing, including any exclusions of liability.
The metaverse land market is still very new and may go through periods of rapid price appreciation or decline-so. Therefore, it’s essential to be prepared for either scenario.
How to Buy Land in the Metaverse?
Step 1 – Select a metaverse platform
There are several popular metaverses where you can buy land.
- Decentraland – The Ethereum blockchain is used to create Decentraland, a 3D VR platform. LAND NFTs, which have precise coordinates on the grid and a pointer to parcel data, are used to record the ownership of land parcels. To buy LAND, users must first own MANA tokens, which may then be used to purchase in-world products and services.
- The Sandbox – Sandbox currently owns over 62% of the entire metaverse real estate market, which it has dominated for a long time. With premium lots selling between 20 and 30 thousand dollars, the average cost of an acre here is currently $11,000. Virtual spaces may be purchased or leased for various purposes. Family residences, businesses, art galleries, and hangout zones of multiple sizes are available.
- Cyptovoxels – You purchase property and construct with monochrome blocks in this virtual environment. Using native $COLR tokens, you may change the colors and other elements of your designs. Editing, avatar creation, and conversation are all enabled via the platform’s built-in tools.
- Somnium – Somnium Space is a virtual reality metaverse created entirely by users. It is built on blockchain technology. Users may have immersive VR experiences on computers and mobile devices thanks to the 3D virtual world.
Step 2 – Buy cryptocurrency
Once you have selected a metaverse platform and a metaverse to buy land in, purchasing cryptocurrency is next. In many cases, this will be Ethereum or Bitcoin.
Step 3 – Create an account with the metaverse platform
Once you have purchased your cryptocurrencies, the next step is creating an account with your choice’s metaverse platform. This will allow you to store your cryptocurrencies and access them securely when necessary. Many venues offer wallet facilities for storing LAND and other crypto assets offline.
Step 4 – Purchase land in the Metaverse
Now that you have created an account and purchased your cryptocurrencies, the next step is to buy land in the Metaverse. This will generally involve transferring crypto assets to the platform’s designated wallet. This will require signing up for a verification process in many cases. Once completed, you can purchase land using real-world currency at a set price per acre. Step 5 – Customize land in the Metaverse.
After purchasing land, the next step is to customize and personalize it. This can be done using the platform’s built-in tools or downloading 3D assets from third-party providers. Editing, avatar creation, and conversation are all enabled via the platform’s built-in tools. In many cases, users also can change the colors and other elements of their designs using native tokens.
Step 4 – Finalize your virtual land purchase
Once you have completed the customization process, it is time to finalize your virtual land purchase. This can be done in several ways, but voting and blockchain smart contracts are the most common methods. Voting allows land owners to democratically choose which applications or features should be added to their metaverse platform. Blockchain smart contracts allow for faster and more secure land purchases by automatically exchanging crypto assets for real-world currency once the conditions set by the agreement have been met.
Step-by-step process to buying land on OpenSea
Step 1 – Register and sign in to your account
First, you will need to register and sign in to your account. Once you have done this, you can access all of the features and tools available on OpenSea.
Step 2 – Verify your identity
After registering, you must verify your identity. This process can take a few minutes but is required to protect ourselves and our users from fraudsters and scammers. By confirming your identity, we ensure that only real people purchase land on the platform.
Once verified, you can continue with the rest of the steps in this guide.
Step 3- Choose a virtual land plot
Now that you have registered and verified your identity, the next step is to choose a virtual land plot. You can do this by browsing through the available properties on our platform or using the filters provided below. Once you have found a plot of land you are interested in, click on it to open up its details page. Here, you will find all the information required to buy it, including its price and description.
Step 4 – Finalize the purchase
The final step is completing the purchase once you have found the land plot you want. To do this, click the “buy now” button next to the plot’s price. This will take you to our secure payment gateway, where you can pay for your land using fiat or crypto assets. Once you have paid for your land, its details page will automatically update with information about its location and ownership.
Conclusion
Virtual land is an exciting investment opportunity that offers potential investors a high-yield return on their investment. In this blog, we will guide you through the entire process of buying land in the Metaverse and provide tips on making the most of your virtual land investment. So mark this page and follow the steps to purchase land in the Metaverse for 2022!