Is virtual real estate still viable?
The current state of the global economy, including web 3.0 markets (crypto and NFT) is changing. After a disastrous fall, cryptocurrencies like ETH and BTC are hovering around half the value of their all-time highs. This has led many to wonder how the bear-bull dance impacts the potential of the metaverse, as well as virtual real estate. Where do fashionable technological advancements fit into the current cultural and economic climate? Let’s look at the big picture.
The metaverse as a natural evolution of the Web
The evolution of the internet was inevitable, given how much time we spend staring at screens. The metaverse is the natural next step, as it will allow users to fully immerse themselves in the digital space. That said, being able to experience virtual entertainment is not a matter of exclusion from Web 2.0 – the current state of the internet – or real life, despite what many critics claim. On the contrary, being able to connect more deeply through a new medium will open exciting opportunities.
While the Metaverse has captured media attention, it seems the public is more focused on developing affordable VR/AR devices, which tech giants like Apple and Meta are currently working on. The lack of user-friendly technology available may not be a problem for Web 3.0 enthusiasts. However, there remains a barrier to entry for the casual user.
Metaverse Earth: The usefulness of virtual real estate
What does virtual real estate represent in a theoretically unlimited digital world? Certainly, some boundaries need to be established for the metaverse to be practical. People can’t run around for thousands of miles for it to be a social experience. Still, getting used to the many things one can do in the metaverse takes some time for any user. Creating a familiar and comforting space can be a great starting point. Buildings can therefore act as points where the metaverse experience begins in an inviting and understandable way.
Virtual real estate can provide familiarity, while pushing the boundaries of what is possible in terms of design. Seemingly odd implementations of ever-changing digital walls, ever-changing colors, and shape-shifting furniture are just the beginning. In an instant, the same environment can transform into a futuristic oasis, or something else entirely. Imagination is the only limit here. The same space could serve as a home, concert hall, gallery, club, etc. That’s a lot of possibilities.
The importance of virtual real estate for brands
Large investors, corporations, and service providers are likely to see the rise of the metaverse in a different light than regular users and enthusiasts. Given the long-term opportunities, there is too much at stake to miss out on in the metaverse space. Therefore, they do not consider temporary market conditions as important as establishing a meta-presence. Nike, Zara, Samsung and Burberry are just a few of the big players currently aiming to leave a mark in virtual worlds. This not only puts pressure on the competition; in the future, it could be the determining factor of a brand’s success.
This goes back to the idea that the metaverse is viewed for its long-term benefit. It was never designed to provide quick feedback. In such a large new space, in its very early stages, bumps in the road will be inevitable. However, if the Metaverse will grow almost as big as Meta plans, missing out commercially is not an option. The projected metaverse market value of $1.6 billion by 2030 also points in this direction.
A business presence in the metaverse requires the head office to provide services, have a social meeting place both for hosting events and for marketing purposes. In short, any brand worth its salt will need virtual real estate. Functional and design trends will be the deciding factors in shaping what the Metaverse will become. Therefore, owning a space means that you will be able to shape a part of the digital world. This is where a power play for brand influence could begin.
Market trends come and go. But if the Metaverse develops as expected, securing a location to make a statement could be worth far beyond the sums we’ve seen for storylines. Certainly, many variables must be taken into account. Whether Decentraland and Sandbox will maintain their position of power is uncertain. Metaverse worlds could rise and fall depending on their usefulness and popularity in the years to come.
If one believes in the idea of the metaverse, then a pure downtrend in the market is only a small hurdle due to unfortunate global circumstances. The economy will fluctuate, but something as vast as the new, immersive Internet 3.0 will endure. The popularity of virtual worlds and their economies will be clearer in half a decade.
The metaverse is in the launch phase and has not yet reached orbit. It is far too early to make assumptions about whether the potential of virtual real estate is negatively impacted.
From a short-term perspective, the global economy is taking a hit, and it’s affecting all facets. In the long term, virtual real estate is still far from showing its extent and its applications. For now, there’s still room for healthy excitement about what’s to come.
About the Author
Tomas Nascisonis is the CEO of Crypto House Capital. He has over 20 years of experience in managing and developing real estate, oil and technology businesses. Tomas has achieved many successes in his professional career. Now, fascinated by the promising potential of Web 3.0, he is fully dedicated to promoting and exploring the metaverse space. Nascisonis describes himself as a metaverse community builder and is currently working to bring value to virtual residents of an upcoming virtual real estate project.
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