Crypto Role in the Incoming Metaverse Real Estate ExpansionDecember 18, 2021
Real estate is always a popular means of investment, especially for those who already possess a range of other types of investments in their portfolio. But, with the dawn of the Internet age, the option of real estate no longer had to include a physical property or a plot of land. Instead, digital real estate and virtual plots became an option, first in MMORPG games and simulation titles like Second Life. Now, the global investment space is quickly entering the next phase of this process with the accessibility of land inside of the metaverse spaces. Here, the possibility of paying several ETH tokens for a plot of virtual land is no longer stuff of speculative fiction.
Instead, the coming year promises a chance of a massive real estate boom in the field of metaverses and massive online games. Of course, this is tying perfectly into the notion that everyone in the blockchain space wants to be first, invest early, and be ahead of the curve. That is why the crypto space might profit from the same gold rush on virtual real estate that is clearly incoming. The only question is in what form will it arrive and how massive will it turn out to be in this first wave. Besides that, the crypto community is also trying to figure out which networks will be in on the ride, besides ethereum, naturally. In those answers the possibility of huge profit lies, as well as a chance for a long-term investment that might rival smart early adoption of NFTs and even bitcoin tokens themselves.
NFT for the Future
No matter how one looks at it or what might one think about the phenomena, the future for the non-fungible tokens is more than bright. These blockchain entities represent unique digital assets like virtual homes or virtual plots of land. Their use is numerous and the NFT artwork expansion is just one of those aspects. So is real estate in the digital domain and metaverse ecosystems. However, besides being bright, the future for the same technology is also based on multi-chain processes. This approach is not just another buzzword in a space that is already laden with buzzwords.
It is actually a means of overcoming the limitations of the most popular blockchain networks for the purpose of smart contracts, which is ethereum. With the multi-chain approach, the issues of scalability and user features can rise drastically and stop becoming a hurdle to all projects that come across these. Instead, they can become actual advantages that can bring more people into the fold of esports, digital real estate, and many other corners of both commerce and art.
The multi-chain ecosystem of the future is no longer a distant potential. Alternative chains like Solana, Kusama, Tezos, and Cardano are already up and running, providing their users with a range of possibilities that the ethereum blockchain could not offer on its own. They are also able to fractionalize ownership, which makes NFTs both transferable and usable across these metaverses. This is breaking the limitations of the traditional digital collectives scene and maybe even allowing them to seep into the real world. It might not be the most intuitive process to immediately associate this technological advancement with the real estate industry.
After all, this business goes back hundreds of years in some form and today it is still selling physical houses and other types of real estate. However, the mechanisms that it employs are very adaptable to the process of digital real estate. Without any issues of scalability and other ETH-related problems, the potential for the same industry immediately begins to rise. The only question is how and how will take on the challenge of entering this novel business domain.
As anyone who has ever rented or bought any property knows all too well, there is a lot of hassle connected to the same process. Acquiring real estate is time-intensive, inconvenient, and expensive, no matter where or how it takes place. It involves an insane amount of contracts, payments, and deals between tenants and landlords, agents working for real estate companies, and the ever-present lawyers. Any arrangement includes multiple transactions and a lot of time and money invested into it. In the case of virtual property, the process is completely different and uses things like peer-to-peer transactions. With these, the process of purchasing real estate of some kind can be taken care of immediately.
At the same time, smart contracts that offer the ability to automate and self-execute commands can be set in place to take on rent and other elements without any input from the owners or renters. That means that shares and funds related to digital real estate can be automated and the same automation immediately executed whenever the contracts demand it. That is lightyears away from any current real-world real estate deal one could find anywhere on the planet. Because of that, the sheer appeal of virtual metaverse real estate might boil down to the simplicity of use, and more precisely, the simplicity of investment.
Today, many are well aware that there is a gold rush related to anything connected to the metaverse. Celebrities like Snoop Dogg are currently investing millions of USD into not just cryptocurrencies like bitcoin BTC, but also virtual real estate. Young individuals are doing the same with their means, trying to reach out to real estate sellers in a broadly similar way they have been engaging with NTF art for some time now.
Even the relatively financially conservative Fortune Magazine called the space a multi-trillion USD opportunity. Some even believe that the new generation of adults will in substantial numbers possess their first home in the metaverse, not the physical universe. While this might sound like a dystopian nightmare for some, it is still almost certainly a reality. Of course, there are still many things that need to be ironed out in this industry. Also, many will lose money in this environment as well. But it, like the role of crypto in the same financial ecosystem, is here to stay.