Digital Real Estate??
Digital Real Estate, The Metaverse Nfts. I have a video that explains it a little bit better than I think I have previously, and maybe that helps out. A lot of people have been asking questions about this, not just to me necessarily, but I’ve been hearing a lot of chatter about those couple of words and what’s going on and just the pricing and is it a bubble and whatever and who knows?
So we have a video from CNBC. We’re going to go ahead and click on that and play it. Let’s pull it over. We’ll give you the link and see what happens.
Well, the real estate investors are paying millions of dollars for plots of land that don’t even exist. It’s come to this. At least not where you and I can see the land there in the metaverse, the virtual reality space where a digital private island can cost as much as an average American home legitimately on the land rush where there is no real land. Here’s CNBC’s Andrea Day.
So where are we right now? We are in Decentraland right now.
But we’re together virtually in the metaverse. That’s me, that’s Andrew. And there’s my producer, Chris, with the Mohawk.
This is the museum district. So what is this place? It’s a digital world where you interact with real people, but as cartoon like characters called avatars.
Andrea I think you need to save that for the club district. Really, the metaverse is the next iteration of social media.
But there’s more here. I will take you guys to some more interesting areas.
Major artists are performing here like Justin Bieber. You can go to a carnival, you can go to a music concert, you can go to a museum. All types of different experiences that you can explore and get immersed with.
But what has some investors paying millions to grab a piece of the action? Digital real estate.
Prices have gone up 400 to 500% in the last few months.
Kaggle is showing us around one of the hottest worlds in the metaverse right now called Decentraland. So hot. His company recently dropped nearly two and one half million dollars on a piece of land here.
Another hot world in the metaverse, the sandbox where Janine Georgiou’s company that invests and develops virtual real estate just spent more than 4 million on a parcel of virtual land. That transaction breaking records.
The Sandbox is probably the second most popular blockchain metaverse today.
Her company sold 100 virtual private islands last year for $15,000 each.
Today, they’re selling for about 300,000 each, which coincidentally is exactly the same as the average home price in America.
So why the digital land rush? Real estate broker Oren Alexander explains The digital world.
To some is as important as the real world. So it’s not about what you and I believe in, but it’s about what the future does.
And just like property in the real world here, it’s also all about location. There’s areas when you first go into the metaverse is where people congregate. So those areas would certainly be a lot more valuable than the areas that don’t have any events going on.
It’s those heavily trafficked areas reeling in big spenders here in the sandbox. This piece of land with Snoop Dogg’s face on it is owned by the rapper. He’s building a virtual mansion on it and talk about location. Someone just paid 450 grand to be his neighbor.
I think it absolutely matters who your neighbor is. That’s kind of true of almost anything, right? It’s like a club and you want to be around people that share similar interests.
Buying land is pretty simple. You can buy it direct or through a developer, but you’ll need to build on it and make it interactive.
You can decorate it, you can change it, you can renovate.
It’s code. But there are critics.
I would not put money into this that I didn’t care about losing. I certainly wouldn’t.
Mark Stepp is the director for Real Estate Theory and Practice at Arizona State University.
If it continues the way it’s going, it is most likely going to be a bubble. You’re buying something that isn’t tied to reality. It doesn’t make a lot of sense, except it may satisfy somebody’s desire to participate in some gaming activity.
So why the land rush? Cagle says a lot has to do with Facebook’s shift to virtual reality and because of COVID, since we’ve all been stuck inside for a long time looking for ways to connect. So what’s next? Time will tell how high digital real estate prices go in the metaverse. But unlike the cartoon avatars, the money spent here is real. Shep.
I want to go ahead. What does this mean to me? People have way too much money to spend on non-essentials. This is ridiculous.
But is it? Yes. I want to buy something and invest in something I can see. I’m not going to invest in, like, something there, just so I can be Snoop Dogg’s neighbor. I don’t know. That’s just me. Maybe it’s old school, but I don’t.
It’s kind of crazy. So who wants to be a virtual real estate?
I mean, yeah. Broker. What’s the commission pay? That’s crazy to discuss that.
Transaction. I wouldn’t purchase or invest, but I would, you know. Help others. Participate and help others. Yeah.
Interesting. Well, islands that were 15,000 now 300,000. Virtually or. No virtual islands, of course. No, you can’t buy a real island for that price. A virtual one. We saw some one time.
Virtual island, 300 grand. I’ll never get there, but. Just trying to explain these things so that as people are asking you questions, there’s a lot of questions.
Going next year. We have the virtual division.
Yeah, I have no idea what’s going on, but it is important to stay on top of things so then you can discuss them with clients. What did you come up?
And that’s just the idea here is to have many different topics to be able to discuss with people. So there you go. I do. I definitely want Snoop Dogg as my neighbor. It would be pretty fun.