 |
| Decentraland |
Recessions come and go, stocks rise and plummet, heck, sometimes even booze prices get downwardly revised, but none of the usual applies to virtual real estate prices in the metaverse.
Triple Vaxxed Against A Price Drop
Even as portfolios diminish in value this year for both stock investors and crypto enthusiasts, another sort of investment seems to be holding steady: virtual land in metaverse real estate in platforms like Decentraland and The Sandbox.And why that's the case is not really a mystic phenomenon. There are 3 solid reasons backing that steady price.
📌 Bought For A Specific Reason: Unlike stocks and other investment instruments, virtual real estate is often bought with an intention to do something specific with it, like build a rental unit or billboard or create some kind of experience for people interested in interacting with a brand. This buy-and-hold mentality of the virtual land owners increases the scarcity of an asset that's already limited, meaning no drop in value.
📌 People Are Just Getting Started: As more folks hear about the metaverse and realise its potential for their business or social life, more things are happening there. That's how the metaverse grows. The more content that creators add to the various platforms, the more there is to do, the more people show up, the more money people make. The cycle continues.
📌 Virtual Real Estate Now On Instalments: Recently, metaverse real estate developer TerraZero issued its first official metaverse mortgage for the purchase of a USD45,000 parcel in an entertainment district in Decentraland. And with other big financial players like JP Morgan eyeing financial opportunities in the metaverse, it may not be long before such loans are freely available, and more people get them.
In One Sip