Metaverse Land Plots - Are They Really Worth It?
The other day I was reading about the recent metaverse hype and how some companies are investing big amounts of money into virtual land plots. In this article I want to discuss why I think they are doing that and I will also talk about whether I think it is worth it. Keep in mind, that we are maybe in the beginning of something greater than we think and that my thoughts might be completely wrong though. With this out of the way lets get into it!
Metaverse Hype & Land Plots
To set the scene lets start with the following news: Recently a crypto company bought a bunch of land pieces in a metaverse project. That means these plot of lands are digital. In total, they paid about 4.3 million US dollars for this investment. This got me thinking: Why would they make such a big investment? Am I not seeing something? For context, I can understand if somebody buys a piece of land in the real world because you can use it for real estate or other application. And then it hit me: Applications!
I think that virtual land can be used exactly the same way as the real world land plots. The only difference is that they are digital. Maybe there are more opportunities in the future for a broader types of applications. But there are two major problems that I think might occur. The first one being, that it is digital land. That means that in theory there should be unlimited plots of land available. In the current projects this is certainly not the case as there are a fixed set amount of property blocks. That’s what makes them valuable in the first place. They are a scarce and limited resource. The second problem is the application side. Right now you are buying a piece of land to just sell it on for a higher price which is not generating a lot of value to be honest. The second way is to use it as Ad block or a more sophisticated online shop where you can offer online services. With online services I mean like people paying you to get on to your plot of land to look at your NFTs or similar stuff like visiting a digital concert. I think that might be pretty cool in the future, but it does need more development for sure.
I have mixed feelings about this. On the one hand I really think that we can experience such a development in the world. It is for sure a big step in an interesting direction to experience concerts from home and maybe even have the opportunity to build your own business without leaving your house. This could be an early stage of the virtual world that we see in movies like “Ready Player One”. On the other hand I can not really comprehend the prices that are being paid for these assets. I somehow have the game Minecraft in mind. This is an open world game where the world is basically endless and generates it self further if you are walking further. This means that while the plots of land are constrained right now, maybe in the future there will be no limits in regards to land plots. That would mean that this would not be a scarce resource anymore and the only value that is left would be the value that is being produced by the person who owns this land. In my opinion this would be a much more beneficial take in regards to benefits towards the community. I think at the end the produced value is important and not the amount of money that a potential piece of land is worth.
With this being said, there might even be a completely other scenario. As I mentioned before, we are at a really early stage of this metaverse saga, as I would call it. This means that not everything that is being done now is completely perfect and will be adopted in the future. A part of this is for sure the utilization and purpose of such land plots. There is a very famous example of history. Ever heard of the one million dollar website? If not: Here is the link : http://www.milliondollarhomepage.com/ .
So what is this you might ask? In the early stages of the internet a guy brought this webpage to life. He made one million boxes In total and made them worth each one dollar. This way everybody who wanted one box could buy one. A pretty cool idea if you ask me. This website is basically a big billboard for ads and links. But why do I mention this? Well, those boxes are essentially the pieces of land in the metaverse. These boxes were sold for one dollar each, meaning that the creator of these boxes earned one million dollar. The worth of these boxes today is probably nothing and all of the ads and links don’t seem to be that successful to be honest. Essentially, what happened is that the constructor of this webpage benefited massively while the buyers of these boxes left with nothing of value. This could also happen with the pieces of land and this is why I would rather sit on the sidelines and watch what is happening, especially if the plots are that expensive.
What I wanted to tell in this article is that not everything that is being hyped up right now might be important or valuable in the future. Many of you probably also experienced some scams or watched some unfold. By all means, I do not want to say that these whole plot of land market is a scam but as long as it is not generating real value a I would stay away from it. I hope you have a wonderful weekend and Stay Safe!
Published by ga38jem on
On 17th December 2021
Posted Using LeoFinance Beta