The real estate space, all over the world, is a multi-trillion dollar industry. Land is inherently scarce, hence the value in the investment. With the onset of the digital age, more and more businesses are moving to the virtual realm. The metaverse is the latest digital craze that has taken the world by storm.
The metaverse is the coming together of two long-standing concepts: virtual reality and digital second life.
Some people are speculating that there is a gold rush for virtual properties. Recently we have seen many giant corporations buying land in the metaverse. JP Morgan has stated that they expect metaverse earnings to be in the trillion-dollar per year category.
Does that make virtual lands a better investment? Is this a revolution, or just another bubble that’s about to pop? Well, let’s dive a little deeper as the answer is not quite so simple.
The digital land space also has room for virtual land developers, realtors, architects, and mortgage lenders, all within the metaverse. The industry is both social and economic in nature.
The major issue could be the timing of the industry. As of now, it is quite difficult to presume if the metaverse platforms today will still be the leaders of tomorrow.
Metaverse: is scarcity real? Or can we program more lands?
Although digital lands are scarce in their inherent programmed code, there are multiple metaverses. Hence the dilemma of which is the one to go for. Moreover, the technology is constantly evolving, leaving more room for questions. Users may decide to leave one metaverse for another.
There is no doubt that currently there is a lot of hype. According to Metametric Solutions, sales in metaverse properties may go as high as $1 billion in the coming year.
But, this is all in the early development stage. As with the dot com bubble of the late 90s, the metaverse sure will be around in the future. However, which are the ones that will survive is a question that deems many debates.
Some virtual lands might be appropriate for some use cases, while others may be better at something else. Top brands like Gucci are buying digital land to cater to the generation of tomorrow. HSBC also recently announced their own branch within the metaverse, partnering with The Sandbox.