The metaverse and real estate
By now, you’ve probably heard of the concept of the metaverse – especially after Marc Zuckerberg’s Presentation about Facebook’s own digital word: Meta. In fact, a lot of parts within the Facebook ecosphere have already started incorporating the new brand. Its goal is to create a new digital world with its own economy, its own culture, and its own real estate. Grasping the concept of digital real estate might seem difficult right now, but it’s something you will definitely be confronted with in the next few years if you work in this industry. To get a deeper Insight how the metaverse might change the economy, you can take a quick look at the evolution of cryptocurrencies being normalized. Based on an American survey by cnet.com, in 2015 about 48% of people questioned have at least heard about cryptocurrencies. In a newer study done in 2021, 86% of people have heard about them. You can expect a similar progression following the announcement of Facebook’s Meta about the metaverse concept. Now to get back on track about how this might change the real estate industry, we can take a quick look at different cryptocurrencies surrounding the industry. One of the most popular coins, MANA, is a cryptocurrency by Decentraland. Its goal is to create a decentralized 3D-platform, as the name states, that will allow users (referring to anyone able to have a crypto-wallet) to buy, develop and sell virtual land. The virtual plots are immortalized through NFTs (non-fungible-tokens) which relay on the Ethereum blockchain. All virtual assets within those digital worlds can be bought, traded, and sold with MANA – Decentraland’s cryptocurrency.
Meanwhile, various other platforms with the same idea have emerged such as Sandbox. Phenomenally, some NFTs have been sold for millions of dollars – and yes, we’re talking about real money. The reason these plots sell for such huge amounts of money consists of two main aspects: Positioning and Limitability. Think of it this way: Property on the Broadway is incredibly expensive due to the possible exposure that ads get when placed there. The same concept transfers over to the digital world, in-fact it is even more acute in the digital world than in our physical world. Over the span of the last 6 months, big companies and celebrities have started investing into these digital lands, such as Adidas or Snoop Dogg. It is quite surprising to see big wealth-holders like Blackrock not criticizing our new upcoming digital world as they are direct threats to their business.
Other industries, such as the videogame-industry are quite obviously very invested into the idea of a digital world. One of the biggest videogame-developers, Epic Games, has announced a 1$ billion funding-round for the metaverse concept. It will be interesting to see industries colliding and/or collaborating as they build a new non-physical world for humanity’s greater good. As surreal as this all seems, it is very likely going to be a new, semi-separate reality that most people in 1st world countries will have immense contact within the next decade. As you can tell, giving an insight into this new world is quite complex and with this blogpost we’re only really touching the tip of the iceberg. If you haven’t yet, we highly recommend you to take a deeper insight into this new digital realm. Let us know how you think this will all play out in the comments!
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The effects of the Digitalization in real-estate (EN)
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