The Metaverse is becoming more and more real, and everyone just wants a piece of it.
As we know, the Metaverse is an immersive universe, built with virtual and augmented reality, and it is possible that it will soon take even more of our time than the physical world. The result would be brand-new opportunities for users, as well as for developers. They would have the option to create, build, earn, meet and play in a new, digital world.
And although it may seem as a far futuristic dream, it is already here. With the smart glasses an Ai based tools and software products, we are closer to the Metaverse than ever.
Investing in Metaverse
There are actual expectations that the Metaverse industry could reach about $1 trillion in revenue. Why is that?
Well it is not a secret that today's people spend more and more time online and that is the reason for the shifting importance of the digital world. The result will be virtual assets, becoming as real as real-world assets. In fact, this is already happening.
In 2021, people spent more than $50 billion on virtual goods, such as video game items. NFTs are also a part of this trend.
And with the Metaverse becoming more interactive, the opportunities ahead of it will become even more significant.
Games are the forefront of the Metaverse as they have the quality to get us hooked up. Those types of games are one of the reasons for people to have interest in the new digital world and thanks to blockchain technologies, it is possible.
Games like Decentraland give players the opportunity to own digital assets, including NFTs.
With this, come some benefits to traditional social and gaming platforms. Today, companies are willing to invest in decentralized platforms, for a lot of reasons. They are buying lands and establishing their digital presence in the Metaverse.
As a result, prices of the lands became extremely high. For example, lands in Decentraland are divided into plots and the cheapest one of them is worth $11 000.
Not only that, but the game has its native token. Mana has a market capitalization of around $4 billion.
What is the risk of investing in Metaverse Land?
Of course, there are some signs that the price of digital land could be inflated. Most of the companies are buying, because they expect future profits.
For lands in Meta games to increase, there should be player demand for housing in the plots. Gaming companies will want to make their play to earn games, advertisers will want to buy digital billboards and companies will want to set up shops for virtual and physical goods and services.
Besides that, at the moment, the user base for this type of games is minimal, and it is difficult to have any estimations.
Celebrities and the Metaverse
One of the most significant indicators of the bubble are the valuations of land close to celebrities. Actually, Decentraland makes it possible for users to teleport by just inputting coordinates. Despite that, people spent huge amounts of money to buy plots, next to their favorite celebrities.
We can easily say that Decentraland is an established Metaverse game with its own advantages. It has a good head start and powerful branding, attracting influential names, able to attract developers in their ecosystem.
Furthermore, the volume of investment makes more people show interest in the success of these projects.
Flaws in the Metaverse Land
While supporters say that games like Decentraland could change, as a lot of money is at stake and developers could add more lands, it is almost impossible to happen.
If we have a look at the structural model of layers, we will see that each layer is more challenging and difficult to change.
With that in mind, it is unlikely for landowners to want more land, as it would impact the value of the one they already own.