Rebecca Pezzatto / 05/07/2021
Why Invest in Digital Land
The real world keeps getting more and more chaotic. In the midst of chaos, digital land might be your next big investment. It’s still a foreign concept to most people, but it’s worthy of investor consideration. Digital lands are very likely to appreciate exponentially throughout the near term. If you’re interested in owning land without leaving the comfort of your home, keep your mind open to the possibility of investing in this innovative way.
Think about it this way: we’re already living in the future. We conduct most of our lives through a screen. Especially during the pandemic. Virtual worlds are now places where we don’t have to social distance. People can cluster up by using avatars and have interactive social experiences. This online community is called metaverse, and it’s structured like real-world cities. It’s only logical that we start investing in land — but digitally.
Investing in digital real estate with real money is becoming real. We already learned that the process of buying digital land is happening in the most technological way possible — within blockchains. There are no legacy requirements for paperwork or title insurance. So one of the major issues with investing in a cryptocurrency like Bitcoin can be its volatility. If it goes down even a few percentages, the whole crypto market can be dragged down. However, the opposite can happen too. If it goes up, all coins also go up a lot more than just that low percentage.
But investing in digital land can protect you from these crazy and unpredictable cryptomarket swings.
Let’s use Decentraland as our main example. Decentraland is a growing crypto-based virtual world. All of the land in this game, except for roads and plazas, can be bought, sold, and developed by the users. And whether MANA (the game’s cryptocurrency) goes down or up, if you bought land at a good price, you should see an overall steady increase in your investment. All that regardless of how Bitcoin is performing.
Just like in the real world we live in, the space in digital land is finite. This makes owning real estate digitally potentially valuable. And what makes digital land valuable isn’t just the location within the game, but how you choose to develop the land you own. To attract other users to your land, you have to make them want to go there. Whether because there’s interesting content there or new people to interact with.
Buying digital land has real-world benefits. Just a couple of months ago, the luxury brand Gucci released a virtual sneaker that can only be worn in digital environments. It divided the internet, with many people stating that it’s crazy to buy something you can’t actually wear. But as real-world brands enter the metaverse as a way to advertise, engage, and connect with users and customers, it’s likely that digital real estate will continue appreciating in value. Land that sold in Decentraland for about $500 in 2019 is now trading for over $7,860.
We don’t have to wait for the future to come, because everything is happening right now. And the sooner you invest in it, the more profit you’ll make from them. To understand this movement, you have to think ahead, keep an open-minded point of view, and invest wisely.
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