Investing In The Metaverse Is Within Everyone's Reach, What Is The Average Price Of A Virtual Land?
You can be certain that if you want land or a house close to Snoop Dogg’s then you will have to pay dearly for it. An anonymous person has paid 340,500 pounds (almost 450,000 dollars) to buy a virtual plot of land next to the one that contains the villa of the rapper in Roblox.
But rest assured, not all land costs that much. Just as in reality, there are cities, states, and districts within cities or streets where prices skyrocket or are very cheap. In Southern Italy, there are abandoned villages where Municipalities symbolically give you one euro if you buy an old house there to renovate.
The Metaverse is a bit like this. There are prices for all budgets. However, you have to be good at choosing so don’t end up with a “bin” in hand.
Here we will dive into the main concepts and aspects to evaluate, and give some indications on the average prices of a land in the metaverse.
WHY DO VIRTUAL LANDS HAVE A PRICE INSTEAD OF BEING FREE?
Virtual lands have a price because their creation is very expensive. They are designed and developed by technicians specialized in 3D graphics, animation, programming, and other fields that require high-level skills.
The cost is also determined by the copyrights and licenses required to create a virtual land. This includes the 3D models, textures, lighting and music that is used in creating the virtual world.
Even if there are inconsistencies (that one cannot really touch or experience), they are nevertheless subject to the laws of the market.
Think for example of a song. If a piece of music becomes very famous, and you want to use it with the rights for a film, or a video to be published on YouTube, it will cost you a lot. Yet that song has already been produced and it digitalized.
The same is true for lands. There are some very famous metaverses that offer very expensive virtual lands, such as the one just mentioned by Snoop Dogg.
WHAT DOES THEIR PRICE DEPEND ON?
In general, the prices of virtual lands in the Metaverse where land is in great demand. Others are little known and there are few users but perhaps have high potential.
To understand this obviously requires market research, a lot of intuition, and above all a bit of healthy risk.
Here is a list of factors:
According to fintech expert Joel John, there are several factors that determine the price of land in the metaverse. Specifically:
Overall turnout A piece of land is worth more when a greater number of people spend time there, and the duration of their visit is longer. In this sense, it is advisable not to buy too much land, in order not to dilute the attention drawn to each of them and to maintain the idea of exclusivity.
Memetic proximity If a piece of land is close to another “value” piece of land, it in turn acquires more value
Geospatial context If a piece of land is close to a business that attracts money, it in turn attracts money. Again, brands can come together to create shopping malls that attract customers, as in the real world.
There are entities that develop real financial strategies for the purchase for resale, leasing, or division of land to make a profit.
Especially in the gaming field. If a terrain is characterized by important graphics, it acquires greater value.
If you really want to become an expert in land deals, to be able to generate income or have a good source of savings, and if in general you really want to understand the mechanisms of this new Metaverse. Download our guide. It is free and you can easily get it by clicking on this link: https://vestvers.com/real-estate/
HOW MUCH DO THE LANDS COST ON AVERAGE?
I will try to talk about real numbers. Realize that we are talking about a constantly evolving and changing market. So the prices fluctuate all the time.
In February 2022, on the four main platforms that manage metaverses – Decentraland, Sandbox, Somnium and Cryptovoxel – a total of 268,645 lots were available, of which 62% – around 166,000 – were in Sandbox, which dominated the market.
These plots measured 96 by 96 meters and sold for $12,700 in December. Decentraland’s 90,000 lots, measuring 16 by 16 meters, were sold at an even higher price despite their significantly smaller size: $14,400 each.
These can be defined as the starting prices. Yet we are talking about one of the best-known and most appreciated Metaverses.
We can add Roblox, and Horizon Worlds when it’s finished.
If you think the starting prices of virtual land are not particularly cheap – and actually they are not for everyone – I must point out that in some cases they can reach dizzying figures.
– So far, the most expensive transaction ever concluded in the real estate sector of the Metaverse is that of the Republic Realm fund, which in November 2021, spent $ 4.3 million to buy a huge piece of land in Sandbox, to work in collaboration with Atari.
– The investment company Tokens.com has invested 2.5 million dollars to build a tower in the Fashion District, one of the most important in Decentraland. The space, which has an area of 28,000 square feet, will be used to rent space for events or offices.
– Virtual lands have not only attracted the attention of large companies. Celebrities such as Snoop Dogg and Paris Hilton have decided to invest in the metaverse, buying land and building exclusive properties.
It is true that not everyone has 13,000 dollars. But, if you have some money in the bank and want to put it in bonds or in a fund that gives you 2 or 3%.
Here, this is a chance to get that money back in 10 years and assets tripled if not having the value of that land ten times as much.
We can say that they are excellent starting prices and that they are worth the sacrifice you would have to make to buy them.
But if we want to have something truly exclusive and feature-rich, we have to really invest some money. You can’t expect to make a deal with a thousand dollars or 150 dollars.
If you think about it, it would not even be plausible with such a figure that you would invest in something that really works and is trendy.
In the end, the choice is always up to you. You have to decide whether to invest your money in the metaverse or not. Do your research, so you will understand how to get around and what to expect.
You must always be aware that there are still risks. But if you try to do things strategically, virtual land can actually offer some good returns on investment.
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