Virtual real estate NFT is forever changing the way we view digital assets. As technology evolves alongside society, every aspect of life shifts to the virtual space. Typically physical events like work, school, and conferences are slowly moving towards the digital space. Technology makes it easy for everyone to do things through their tablet, smartphone, and computer. However, the biggest surprise to convenience is the virtual real estate NFT craze.
By now, you’ve already heard about NFTs and how the term stands for non-fungible tokens. You also heard about how NFTs changed the digital art scene and rose to prominence in 2021. However, you may not know that you can purchase blockchain real estate only found in the digital world.
But, that’s not all: some virtual real estate NFTs are tied to physical buildings. These digital buildings tend to influence the design and construction of real-life properties.
This article delves into the virtual real estate NFT phenomenon and its influence on the industry. The article also shows how to capitalize on it through virtual real estate NFT development.
The virtual real estate NFT phenomenon
In 2020, there was a digital artwork that sold for more than five hundred thousand USD during an online auction. It was the first NFT digital house sold and was a landmark moment in NFT technology. This sale marked the start of the craze around virtual real estate NFTs.
NFT tracking site NonFungible.com reports that a plot on the famous Decentraland sold for nearly three hundred thousand USD. Another famous game, Sommium Space, reports selling a plot for more than five hundred thousand USD. These digital landscapes (or metaverses) allow people to find friends, participate in events, and do things they’d normally do in real life.
There are various types of metaverses and each type attracts a different audience. Some metaverses have significant content like shopping malls and museums. These digital landscapes bring in the most traffic and have a wide user base.
The pioneers of virtual real estate NFT
Blockchain and cryptocurrency are the pioneers behind the current metaverse phenomenon. The two concepts were first introduced to the world in 2008. Cryptocurrency is digital money existing on the blockchain, a virtual ledger open to the public. Here, people can turn fiat currency into a digital one. Each cryptocurrency has an exchange rate and operates similarly to a traditional currency exchange.
Today, we see widespread adoption of blockchain technology and cryptocurrency. In fact, several investors note that the adoption rate is significantly faster here than when mobile devices entered the market. The growing number of people dependent on IoT-enabled devices highlights how blockchain technology is here to stay. Many investors believe that the technology will grow and gain mainstream attention in due time.
The widespread adoption of blockchain technology is why we see new digital trends in the industry. It is no surprise that the latest digital trend is buying, selling, and investing in virtual real estate.
Virtual and physical real estate
Virtual worlds like Decentraland are where users participate in the same events they would in real life. They can decorate their homes, attend events, meet new friends, and so on. Users design their avatars that resemble the way they look in real life.
Anyone who knows about real estate also knows about the investment approach to virtual real estate investment. Many investors have a diversified portfolio for real-world real estate and the same remains for metaverse properties. Virtual real estate NFTs may be a new concept but the quick adoption makes it a comparable asset class to physical real estate.
Presently, the metaverse properties that sell well are in downtown districts. A metaverse with significant content attracts more users and increases its worth. The idea of metropolitan areas costing more than suburban areas exists in the real world and the digital world. Hence, virtual real estate developers pay attention to these areas and try to mimic them in the digital world.
Another characteristic that ties the two together is scarcity. Every metaverse has a limited number of parcels. These parcels are digital land plots built in the NFT space. They are virtual real estate NFTs and the popular ones fetch hefty prices. The popular plots are a hot commodity but there is not enough supply to meet the demand. Some properties even come with mortgages and interest rates. There are virtual properties that users can rent out. Financial decisions in the metaverse operate on decentralized finance or DeFi. This software is a blockchain-based financial program that uses an automated workflow. This approach helps […]
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