FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Is The Virtual Land Market Becoming a Bubble?


27 May 2022

In October 2021, Facebook announced it would change its name, image, and concept to Meta. The shift brought a great deal of attention to the emerging concept of the metaverse. In just a few months, more virtual worlds have become popular, along with non-fungible tokens (NFT), cryptocurrencies and the concept of decentralization.

2022 is set to accelerate this evolution. The metaverse and its possibilities continue to make headlines all over the media and we have already seen increasingly large transactions for the purchase of land in virtual environments. This space is mediated by programmes, apps, games and platforms; being accessible through devices such as computers, phones and tablets. It portrays a view of ‘real’ life being carried entirely through the virtual world.

It’s the new hype on the web. Big tech companies believe the metaverse and associated platforms to become the most significant technological advancement in terms of economic and social importance. In fact, buying real estate in the metaverse promises to become part of normality in the coming years.

According to a report by MetraMetric Solutions and based on the four most important virtual platforms today (The Sandbox, Decentraland, Cryptovoxels and Somnium Space), real estate sales in the metaverse reached $500 million worldwide in 2021. These sums are paid in cryptocurrencies, which are always subject to high fluctuations in value from one week to the next, making it difficult to establish per-square-metre rates.

The Sandbox

In the lead is The Sandbox which has already sold more than US$86 million worth of digital land. This virtual world, which began as a two-dimensional mobile app, has become a gigantic 3D virtual planet where virtual versions of the rapper Snoop Dogg, Shaun the Sheep and all the Atari characters, live each with their own territories and cities. Another example would be Republic Realm, a firm that paid more than US$4 million to buy a plot of land in The Sandbox and turn it into Fantasy Islands, a group of 100 islands.

Of the total number of plots available, 90 were sold on the first day and are now on sale in the secondary market for exorbitant prices, reaching eight times their price.

So, will the metaverse last forever?

The metaverse real estate boom revolves around people speculating on what these platforms will look like and be valued at in a few years; more importantly, how these technologies will or will not be adopted in the near future. Some estimates put the metaverse market at $8 trillion in the near future. And programmes such as Roblox or Fortnite have been able to capitalise on this type of immersive interaction for years. But that is still far from converting into a desire and interest for people to be perpetually connected to virtual spaces through avatars. If we want the metaverse to be more than a massive multiplayer virtual reality, we simply need more power and time. Even if the metaverse was our inevitable destiny, we still have a long way to go in terms of hardware.

Apple itself had to delay the launch of its augmented reality devices until it has the technical means to do so. For now, only time will tell whether this digital real estate bubble is a golden opportunity or just blatant speculation to inflate the value of something that has no value.

#source

Share:


Related

The Pound is having tough times
The Pound is having tough times

The Pound Sterling is keeping balance against the USD as much as possible. The current quote for the instrument is 1.0800. The news released yesterday were rather puzzling. The Bank of England announced...

29 Sep 2022

EUR/USD: bears now target 0.9500
EUR/USD: bears now target 0.9500

EUR/USD drops for the seventh straight session and tests 0.9535. Below the 2022 low at 0.9535 comes the 0.9500 region. EUR/USD extends the leg lower to the proximity of 0.9530 earlier on Wednesday...

28 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back in March...

27 Sep 2022

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.