Why buying million-dollar digital real estate doesn’t make sense

Digital Lands is the most hilarious thing at the moment. Last year, Digital land deals beat out $500 million in the fourth largest stages, and there were various million-dollar computerized land deals, for example, in Decentral and, Axe Infinity, or The Sandbox. With deals worth $85 million in January this year, we can expect 2022 to be a record year for Digital land..

With an unlimited stock of Digital lands in a growing number of virtual universes, you’d expect low costs, although that’s not happening. Costs are at an untouched high level, and the more metaverse the information has, the more likely it is to move forward.

Moreover, Digital land traders are joining the craze as there is an open door as many people do not know how to buy computerized land yet there is a fear of missing out on a huge opportunity. Whether this is something to be thankful for is not yet clear. Some tricks would also be quite rational where people claim to have convenience but disappear with money or land at the time. With regard to computerized land, we are in the midst of a dash for unheard property.

Computerized Real Estate and NFTs

When buying virtual land, you are actually buying a non-fungible token (NFT), which represents responsibility for a computerized piece of land. As Metaverse Group writer Jason Cassidy and the organization bought a land parcel for 618,000 MNA (typically $3.2 million at the time of purchase), the purchase of computerized land is similar to buying land in Manhattan during the 1900s. Again, it wouldn’t need 120 years to actually explode in respect, though only 5-10 years.

Many people are extraordinarily excited about computerized land and its importance. While some argue that computerized land is about area, area, area, as it really is and requires you to live in a place that has a great deal of people passing by, VIP neighbors, and a coveted area. Which increases the value of your virtual land, I take an opposing view.

A Contrasting View on Digital Real Estate

The latest is that Digital land investors and brands are consuming computerized land in various virtual universes for vast amounts of US dollars, either to lease it to other people, to take advantage of business practice on top of it, or (future) Creating a virtual shop or administrative center to interface with buyers.

Although it may have been really smart by now, and brands that need to venture into the metaverse must buy a modest amount of ground in an assortment of virtual universes to be comfortable with the metaverse, this comes with its difficulties. is with. As Second Life’s author, Philip Rosedale, said in a tweet in 2021: “When virtual land is claimed on a large scale (on the blockchain), harmful proprietors are likely to be involved by putting hostile substances on much less valuable plots in well-known locations. Will force the other.”

Rosedale witnessed this phenomenon in Second Life 20 years ago, and if it happens, it will probably happen again this time. Along these lines, you recently burned $2-3 million on a plot of land in Decentraland, and in no time, someone could be buying a small real estate parcel nearby and showing something outrageous to a huge one. Bulletin can be set up. Since it is decentralized, there is no way around it. It will undoubtedly give you an awesome night’s rest.

Fake digital scarcity in a world of abundance

More critically, I don’t like the idea of ​​a fake reduction in relation to Digital land. For what reason do you need to manage neighbors in any case?

While lands can be helpful in preventing spam or poor quality matter in virtual universes, a network lock design can also be accomplished in an infinitely Digital world by marking up tokens as opposed to buying deceptively low lands. .

Upgraded land is a manufactured development. Obviously, nothing really bad can be said about it; We have developed a wide variety of make-ups that work admirably in the eyes of the people. Cash, for example, is a spurious development that certainly affects the human race (or an extraordinarily unfavorable outcome, as some would protest). However, in the metaverse, you are not limited by real obstacles. There’s unlimited space, and assuming you really want to go to a place, you can magically transport it. How can you need a limited land parcel in unlimited space?

The Matrix design and reduction in these virtual universes is fake. I can understand this as a support movement for new phases, which seems shockingly natural for the ICO explosion and relics in 2017/2018, yet there can be no great explanation of why you have to go through the infinite computerized universe. Why would you need to restrict yourself to where you can just magically transport yourself, starting with an experience.

On the next, never having to manage any horrible neighbors.

old virtual world

One issue with computerized land being sold for (a ton) cash is that it’s all too common for players to end up with a game and transfer to the most recent shiny virtual world. Before long, virtual worlds that once flourished are abandoned, ending all fun in light of the fact that virtual lands are generally not maintained.

The same thing happened in Second Life, where earlier customers who had bought virtual land were no longer with their computerized assets and new customers needed to shop at the edge from where the activity took place. As Robert Rice, an early AR/VR trailblazer and business person, provided me, the better option is to rent out virtual land that requires closely connected individuals to stake their crypto, resulting in rents. is returned at the end of the deadline. In the event that they choose not to install it again. Thus, the owner gets his cash back, while the land is again opened up to new customers to collect something pleasant on top of that and maintain a prosperous virtual economy.

Moreover, the foundation of today will not be the foundation of tomorrow. The following adaptations, with improved elements and capabilities, are, without a doubt, already being developed, so long as Decentraland, or any other stage is concerned, can continually reevaluate itself, which is only a special Testing is not. Although the addition of a local area challenge to the decentralized phases to ensure that a large portion is accommodated, $1,000,000 speculation could quickly lose its value.

final thoughts

Despite my opposing view on advanced land, I am confident that FOMO will continue to drive up the cost of computerized land. Unless the cost is reduced, in light of the fact that there will be such a high supply of advanced land that it will exceed the request (which is not impossible for the number of virtual universes to be developed, all of the profits from the explosion) computerized land) or in light of the fact that people will start to see that it is not a good idea to buy computerized land for a lot of dollars.

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