• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Friday, January 27, 2023
Ector County News Online
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Technology Metaverse

Virtual-Property Prices Are Going Through The Roof – The Economist

by NewsReporter
December 30, 2021
in Metaverse
virtual-property-prices-are-going-through-the-roof-–-the-economist
Share on FacebookShare on Twitter

Investors are paying hard currency for software real estate

20220101 WBP002 0


“RIDICULOUS AND cool.” That is the architectural brief for a new office tower under construction in the Crypto Valley, a business district of Decentraland, a virtual platform built on the Ethereum blockchain. The edifice—owned by Tokens.com, a blockchain investor—will be a cross between a nightclub in Ibiza and the Bellagio resort in Las Vegas. In a fantasy world unencumbered by something as pedestrian as physics, a rotating company logo will float above the tower as nearby clouds shoot out company-branded thunderbolts. The tower’s purpose—to provide office leases for firms and event space for crypto conferences—is humdrum by comparison.

Listen to this story

Your browser does not support the element.

Enjoy more audio and podcasts on iOS or Android.

Gamers have traded pixelated property and other digital assets for years. Now the activity has been turbocharged by the growth of unique digital artefacts known as non-fungible tokens (NFTs), and by the hype around the metaverse—a emerging virtual market which could, depending on whom you ask, ultimately generate revenues of between $1trn and $30trn.

Real money is changing hands. Some sales involve replicas of the physical world. Users of Legacy, an NFT-powered recreation of London, have spent $54m on plots of land in the game (which is still in development with no launch date). SuperWorld, a virtual planet where people can buy digital versions of any place on Earth, says the average user spends some $3,000 on property purchases. The Taj Mahal and the Eiffel Tower are selling for the cryptocurrency equivalent of around $200,000 and $400,000, respectively. Their current owners paid under $400 each.

Wholly invented worlds are also drawing investors. In November Republic Realm, a company that manages and develops digital real estate, paid $4.3m for land in a platform called the Sandbox, the biggest virtual-property investment to date. That same month Tokens.com spent $2.4m for a plot in Decentraland’s Fashion Street district. Nightclubs and casinos where users can win virtual money line the streets of the gambling district. In its art district Sotheby’s, a real-world auction house, has opened a virtual gallery. Smaller parcels that fetched around $20 apiece when Decentraland launched in 2017 can now sell for as much as $100,000. Somnium Space, a competing platform, reported more than $1.8m of land sales by its users over a 30-day period in November. In other virtual worlds, concert halls stream performances by the digital avatars of pop stars such as Justin Bieber and Ariana Grande. Empty virtual shops could soon be leased by fashion houses such as Gucci, Dolce & Gabbana, Burberry and Balenciaga, all of which have sold branded items in one metaverse or other.

Will the digital-property boom last? As in the physical world, profits depend on footfall and people’s willingness to spend real money. For that to happen at scale the user experience must improve. Popular metaverse platforms such as Decentraland and the Sandbox are clunky. The average user may not want to shell out on the graphics cards, virtual-reality headsets and superfast broadband that gamers use to make cyberspace feel more real.

The second risk is volatility. Virtual-property sales typically involve the exchange of the cryptocurrency unique to a given metaverse. Decentraland has MANA; Sandbox uses digital tokens known as SAND. The price of these can swing wildly, even relative to established crypto monies such as bitcoin or ether, themselves hardly a predictable asset class. They could crash to zero if a particular metaverse bombs.

To lower the risk, early investors such as Republic Realm are diversifying their holdings. The firm says it owns land in 23 metaverse platforms. But unlike physical land, the value of which is in part a function of its scarcity, each virtual realm is in effect limitless. So, in principle, is their number. Hundreds of wannabe metaverses already exist and more will emerge as crypto technology improves. That points to a paradox. Soaring virtual-property prices are predicated on the metaverse taking off. But a booming metaverse means less scarcity and lower prices. The laws of physics may prove easier to work around than the law of supply and demand. ■

For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter.

This article appeared in the Business section of the print edition under the headline “Virtually there”

Related Posts

meta-is-working-on-a-web-version-of-its-horizon-worlds-metaverse-platform-–-the-verge

Meta Is Working On A Web Version Of Its Horizon Worlds Metaverse Platform – The Verge

by NewsReporter
April 14, 2022
0

Meta is planning to bring its Horizon Worlds social metaverse platform to the web, Meta CTO Andrew “Boz” Bosworth said in a tweet on Thursday. Being available on the web would mark a major expansion for the platform, which is currently only available on its Quest VR headsets. A web...

metaverse-builders-see-virtual-pets-as-their-killer-app-–-axios

Metaverse Builders See Virtual Pets As Their Killer App – Axios

by NewsReporter
April 14, 2022
0

A digital pet store might help sell the metaverse to the masses.Why it matters: Hype and funding have flooded into development of a 3D internet, but consumers will need help finding a way in.Driving the news: Pokemon Go creator Niantic revealed its next game yesterday, an augmented reality pet simulator...

meta-etf:-the-metaverse-provides-new-opportunities-for-tech-stocks-–-seeking-alpha

META ETF: The Metaverse Provides New Opportunities For Tech Stocks – Seeking Alpha

by NewsReporter
April 13, 2022
0

tolgart/E+ via Getty Images Investment Thesis The Roundhill Ball Metaverse ETF (NYSEARCA:METV) is designed to offer investors exposure to the Metaverse. Emerging technologies such as virtual reality and game engines allow the Metaverse to take form and grow as they seek to expand the capabilities of a virtual world. Based...

animoca-brands-ceo-robby-yung-explains-the-‘open’-metaverse-–-the-block-crypto

Animoca Brands CEO Robby Yung Explains The ‘open’ Metaverse – The Block Crypto

by NewsReporter
April 13, 2022
0

Animoca Brands, the Hong-Kong based digital entertainment startup behind the popular blockchain metaverse platform The Sandbox, raised $358.88 million in January at a valuation of over $5 billion in a funding round led by Liberty City Ventures. In this episode of The Scoop, CEO of Animoca Brands Robby Yung discusses...

Ector County News Online

© 2021 Ector County News Now

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 Ector County News Now

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT