We are receiving a growing number of questions about real estate in the Metaverse. One question posed to us was, “How does purchasing in the Metaverse (real estate) compare to real world real estate?” One significant difference is that IRL (In the real life) property is tangible, where Metaverse property is digital in nature. With IRL property you receive a deed to the property where in the Metaverse you would get a unique digital ID on a blockchain ledger. When you buy or sell IRL property you need to go to a closing agent (title company or attorney) where with Metaverse real estate you need to go through a marketplace. Primary market places available today are Deceltraland, CryptoVoxels (now called Voxels), Worldwide Webb, Treeverse and The Sandbox. IRL property is bought with fiat (IRL money like US Dollars) while in the Metaverse you buy or sell using cryptocurrency.
Another popular question we have received, “Is investing in NFTs (Non Fungible Tokens) to buy real estate in Metaverse safe?” First, we need to disclaim once again, that we can not and do NOT offer tax, accounting, financial, investment, nor legal advice. We can only offer our opinion. That said, in our opinion, any purchase of real estate IRL or virtual comes with risk that should be mitigated through careful due diligence. Beyond that, we believe that when you follow a proven formula and not speculation or emotion, then you can make better decisions. With those guiding concepts in mind, blockchain technology has been both widely adopted IRL and you probably don’t realize how many ways it is currently being used IRL. The bigger the network, the safer the transactions in the Metaverse. This is one reason for the popularity of Bitcoin. It is the largest. However, looking at demand for real estate in the Metaverse, it is growing, but still a relatively new territory for most people. This simply means that the marketplace currently has a more limited number of buyers so buying is easy but selling may take some time.
Were you aware of Web3? Essentially, it is a third stage internet development underway that will enable decentralization, blockchain use, and token-based economics. If this is something that excites you because it is also likely to be a huge development in the financial marketplace, then great. If you are “What?” then you might want to do some more research.
Real estate has proven to be a reliable asset for many people and will likely remain as such. However, like any asset, it is only worth what someone is willing to pay. This is true with real estate IRL and real estate in the Metaverse. There just aren’t as many players in the Metaverse, yet. If it were us, we would only currently consider a purchase in the Metaverse if we had a confidence that we didn’t need to see a return or liquidation of said purchase for a number of years. Taking the long view, we are bullish on this direction. Taking the short view is more of an unknown. But like it or not, more Web3 and virtual platforms are coming and will be more used as long as we rely on computers. So, it is not for everyone. What is?
For third popular question “How can I buy real estate in the Metaverse?” We offer some possible steps.
1. Open an exchange to buy a cryptocurrency
2. Create a digital wallet so you can have a place to purchase and hold your cryptocurrency
Among the more popular options is MetaMask for the Chrome browser however you can look into Coinbase Wallet or Fortmatic. There are MANY others.
3. Research different platforms to decide where you may want to buy
Once you decide on a platform you can create an account by connecting your wallet. As we said earlier, one such platform is The Sandbox where brands, businesses and celebrities like Snoop Dogg and Paris Hilton have their land however, Decentraland, Voxels, Worldwide Webb and Treeverse are other options.
4. Create a marketplace account to buy NFTs (non fungible tokens)
You will likely have to purchase land on the secondary market. You may want to go to OpenSea.io and open an account. Simply connect your Chrome browser wallet before you go shopping.
We hope this helps. Please consult with an expert or any trusted counsel before making any purchases. We do not endorse any single platform or currency. We are simply reporting news.