- Theo Tzanidis
- Discussion *
The idea of spending thousands or millions of dollars to buy the “earth” of fiction in the world sounds like, frankly, ridiculous.
But in recent months, we have seen a significant increase in the number of sites within the metaverse. The PwC application company is one of the most recent companies, having bought a property in The Sandbox, the game world, at an undisclosed price.
If the other products mentioned are descriptive, they should be more expensive. Recently, someone bought a site on Snoopverse – the real world rapper Snoop Dogg is making inside Sandbox – for $ 450,000.
Meanwhile, the Metaverse Group, a real estate finance company, is said to have bought property in Decentraland, another nearby tower, for $ 2.43 million.
Let’s also keep in mind what a “metaverse” is. You may have heard these words a lot when Facebook switched to Meta in October 2021. Other companies, such as Nike and Microsoft, also announced their entry into the area.
Metaverse describes the vision of a connected 3D world, where real and digital worlds are integrated using technologies such as virtual reality (VR) and augmented real (AR). Deep areas can be accessed via real-time headphones, augmented reality glasses and smartphone apps.
Users will encounter and communicate like digital avatars, explore new sites and create content. The idea is that the metaverse becomes a cohesive place where we can chat, play, work and learn.
There are already several metaverse – for example, on platforms playing like The Sandbox and countries like Decentraland. In the same way that a web page is part of a global 2D network, the metavers themselves will form a large, interconnected metaverse.
Most importantly, as in the real world, it is possible and will be possible to purchase items in the metaverse – including real estate.
Area that looks like NFT
Actions in the real world usually take place using cryptocurrency. In addition to them, non-fungal tokens (NFTs) are a great way to monetize and exchange value within metaverse.
NFT is a unique digital tool. Although NFTs are digital technologies (such as movies, photographs, music, or 3D objects), a variety of objects can produce NFT – including real-world objects. On platforms like OpenSea, where people go to buy and sell NFTs, there are also many places, or even real houses.
To ensure that digital retail space is affordable, donations are minimal – an economic concept called “depreciation”. Decentraland, for example, is made up of 90,000 pieces or “sections” of land, each covering 15 square meters.
We are already seeing examples of real estate prices rising. In June 2021, the Republic Realm digital fundraiser spent $ 900,000 to purchase NFT representative site in Decentraland. According to DappRadar, the site that tracks NFT sales data, this was the most expensive purchase of NFT sites in Decentraland history.
But, as we know, in November 2021, Grupo Metaverso bought their property in Decentraland for US $ 2.4 million. The size of this purchase was much lower than it was – 116 places compared to 259 purchased by Republic Realm.
Decentraland is not the only one that is seeing prices rise. In February 2021, Axie Infinity (another sports country) sold nine of its sites for US $ 1.5 million – a record, according to the company – before the lot was released. sold $ 2.3 million) in November 2021.
While conditions seem to be rising, it is important to note that real estate sales are still speculative. No one can be sure whether this boom is the next big thing in the markets or the next big boom.
Financial incentives aside, you may be wondering what companies and individuals will do with their actual location.
For example, the purchase of Grupo Metaverso is in the “fashion district” in Decentraland. According to the buyer, the site will be used to host digital fashion events and sell real avatar costumes – other sites with potential for metaverse growth.
Although investors and companies are currently in control of the site, not all of the sites in the metaverse could harm millions. But what are the benefits of having a fantasy “world”? If you buy the material in the real world, the results are tangible – accommodation, pride, entertaining family and friends.
While real ownership does not provide accommodation, there are similarities. When you buy a real estate, you can buy land to build on. Or you can choose a pre-built house that you like. You can decorate with different (digital) items. You can invite people and visit other people’s homes.
That vision is a little farther away. But if all of this seems foolish, we should remember that in the past, people doubted the meaning of the Internet, and then social networking. Experts predict that metaverse will grow into a thriving economy in the next few years, providing more relevant and connected digital information in our lives such as email and financial media now.
This is a strange fantasy happening to someone who, like me, was a former player. A few years ago, my little conscience was telling me to stop wasting time and playing computer games; go back to learning and look at my “real” life. Deep down, I always had a burning desire to see the game in real life, as in a movie Real Player One. I feel that this vision is very close to being fulfilled.
*This article was published on The Conversation page. You can read the original Bible Pano.
Theo Tzanidis is a Senior Lecturer in Digital Marketing at the University of the West of Scotland, UK.
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