If you’ve ever considered buying real estate in the Meta Universe, there’s really no better time than there is now. As stock and cryptocurrency markets fall, the cost of acquisition is much lower than it has been for months. There are also more stocks to choose from, as well as opportunities for long-term profits.
Even if the markets didn’t fall, I would still offer you the same real estate advice from the metaworld: buying with a plan and long-term retention strategy is key. And like now, you also get a slightly better price (and who doesn’t like discounts?).
So what am I looking for in the best investments in the meta-universe world? I’m going to share my secret sauce.
1. The metaverse property must be protected by NFT
You can buy virtual items on many digital platforms, but in most cases you never own these items. Platform owners can define rules (check your End User License Agreement), which may include whether you can resell these items, and they can decide how this item may change as the platform evolves.
When you talk about virtual real estate, it’s an even bigger problem than something like a virtual tiara for your avatar. When platform owners can dictate what you can and can’t do with your virtual real estate, is it even yours?
Look for platforms set up to sell NFT-enabled digital items, including, and most importantly, real estate. These NFTs are proof of ownership, and the rights associated with them are determined by NFT permissions, not the whims of the platform owners. After all, you want to be able to resell, rent, or build whatever you want on your virtual land, right?
If your platform offers real estate through a third-party market that sells NFT, such as OpenSea or NonFungible.com, or if you are required to keep your purchase in a crypto wallet, you have found NFT-protected virtual real estate. If you can only shop on the platform, and information about your purchase is stored only in your account on this server, you have not done so.
2. Buy only in the worlds where you have the right to vote
When buying virtual land, you have several options. You can choose a world where the company that created the world is also responsible for the rules and regulations, or you can choose a world with a decentralized autonomous organization (DAO). Metaverse platform with DAO like Decentralized, Sandboxand Otherside owned Bored Ape Yacht Clubgives you the right to vote as the owner or holder of a cryptocurrency, and therefore, you talk about how your world works.
For example, if you have a particularly offensive username, you can vote to ban it and even create a rule that will prevent it from happening again in the future. Want to change the way something works in the world, such as giving users the opportunity to rent their land on a platform without signing a contract elsewhere? You can propose to change the platform, and then the community will vote for it.
However, not all DAOs are created equal. So before you do that, make sure you understand what you can do with your voting rights and what real control you can have as a resident of a particular platform. Some people may not want to participate in the platform’s policy, but it’s important to have a choice if something goes wrong and you need to fix it.
3. Beware of worlds with too many or too few parties
Although final data on this are not yet available, consider the law of supply and demand. If you buy a virtual lot on a platform that will create only 100,000 lots, and this platform is popular with users and investors, these lots should end up costing more. You can view world documentation or base descriptions to learn more about the amount of land that has been affected.
We can look at Superworld, which offers 64 billion lots. During the three-month period ended May 9, 2022, the highest average daily selling price was $ 382.32 on April 3. a day of selling with a small amount when someone made a hell of a deal.
It can also be argued that beware of platforms with too few parties. I usually trust worlds between 75,000 and 200,000 lots, because they seem to be more likely to increase value, maintain that value, and give many reasons for people to come back again and again.
Community is what ultimately creates value in the metaverse
When it comes to investing in the metaworld, it’s important to understand what really creates value: community. People can spend their time online in a variety of ways, so they need to choose your meta-universe platform – and they need a good reason to stay.
Even if you are not interested in running your own meta-global business or building experience, you can find good tenants who want to do so but are not yet ready to invest in their own land. Not only will you receive passive rental income, but you will also help create an additional sense of community for the developing world.
Due to this, the clutch platform is durable. Just look at what Second Life managed to do in the world before the metaworld was even a serious concept: Linden Labs, the parent company of Second Life, brought in $ 500 million in GDP by the end of 2021. This world is much smaller than the modern metaverse platform, has no basis for blockchain technology (so there is no NFT), and has existed since 2003, so it is technologically disadvantageous in many other respects. Nevertheless, Second Life is the best model we have for what the metacospace platform might look like in two decades, and it tells us what is most important when making long-term investment decisions.
City predicts that the total target market for the modern metacospace will be between 8 and 13 trillion dollars by 2030. But if you don’t have users like Second Life in your world, you may lose that opportunity.