Metaverse Land: Is Virtual Land Worth It – Should You Buy in 2023

The Metaverse, originally coined as a term back in 1994, is where everyone will be spending a large proportion of their time, according to Mark Zuckerberg at Meta.

With a finite amount of virtual land owned by a limited number of individuals, it closely resembles the real world.

A limited amount of any in-demand asset will always increase in value.

With the volume of supply already realized, the demand is the only unknown in the equation.

A massive uptake in demand will see the value of Metaverse land increase significantly. On the other hand, a lack of interest will see virtual for sale signs accompanying the virtual land at a rapid pace.

Is there a way to predict the demand?

Predicting the demand of the Metaverse is the only true way of understanding whether virtual land is worth buying in 2022. The value of Metaverse land spiked in late 2021 and early 2022. The drop in value during Summer 2022 either provided a corrective price correction or created undervalued assets.

Although it’s not an exact science, and no one can predict the future, we will, in this article, look at whether patterns in past financial historical events can provide a forecast as to what will happen.

What is Metaverse Land

A Metaverse is an online virtual world filled with digital land, buildings, assets and people.

The Decentraland Metaverse

There isn’t just one Metaverse, just like there isn’t just one games console or just one game. Anyone can create a Metaverse, with the right hardware and coding skills, and although resources are finite in one Metaverse they could be available in another.

Perhaps in the future your Metaverse Avatar could be interchangeable between the different virtual worlds, and your digital possessions can magically disappear from one Metaverse and into another.

The decentralized aspect of The Sandbox and Decentraland, two of the leading Metaverses, could make this highly possible – but the other Metaverse fighting for domination, Meta (formerly Facebook), is unlikely to want to participate.

This is because Meta is a publicly traded company with shareholders, and a corporation whose main goal is to generate as much wealth for their shareholders as possible.

This can’t be done by sharing technology, and why a Playstation game can’t be played on an Xbox or why Apple apps can’t be loaded on to an Android device.

Land with these virtual worlds is scare within their environment. This is key to building the foundations of a thriving economy and ecosystem.

The Metaverse land, in The Sandbox and Decentraland at least, were divided in to parcels and sold at either an initial selling price, or to the highest bidder on secondary NFT markets such as OpenSea.

Is Metaverse Land a Good Investment

The owners of this Metaverse land can do with it whatever they choose. They can build on it, lease it or build on it and then lease the building. They could even choose to virtually live on it.

Imagine owning Metaverse land within a thriving urban area which attracts the wealthy, the influencers and uber-elite names and faces in the online and offline world – how many corporations would be willing to buy or lease the space to engage with or advertise to this type of audience.

If this sounds far-fetched but that was probably the response given by many to someone in the early 1990s saying corporations would be paying billions of dollars every month to advertise within a small device in your pocket that half the population of the world would spend time every day.

Marketing, advertising, and having a presence in front of an audience is something businesses have done for hundreds of years.

The medium may change but the core concept will always remain the same.

If Metaverse land sounds like a golden opportunity we do need to look at whether those rich affluent influencers, wealthy individuals, and celebrities – as well as millions of others – are likely to descend of the Metaverse.

Metaverse Land and Board

Without an audience no one will want to invest, money would dry up and assets in the Metaverse, including land, would become worthless.

The current uptake, and number of users in the Metaverse are very low.

I recently spent some time in Decentraland. I caught a train, wandered around the city, went to visit a free online art exhibition – which surprisingly was quite enjoyable – as well as deciding not to go into the cinema where I could have paid to watch the film showing, bought popcorn and grabbed some 3D glasses for 17 MANA (about $15).

MANA is the digital currency, which is also a cryptocurrency token, used in the Decentraland Metaverse.

Throughout my hour visit I didn’t encounter another Metaverse individual, apart from the central ascending area where all visits start and a huge billboard of events and what’s on attempts to entice you to the far flung four corners of the virtual world.

The Metaverse is incredibly early.

For the Metaverse to be successful it needs to reach the masses. It needs people to want to leave the real world and spend time in the online world.

It could be argued that people do this every day on social media, which is as much of a virtual world as the Metaverse.

The concept is there but the technology needs to be improved considerably.

Any good return on investment of Metaverse land is likely to come in the longer term, rather than short term.

What to do with Metaverse Land

Whether the value of land in the Metaverse has any potential of increasing in value can also depend on what someone can do with it if they do decide to buy.

The ownership of Metaverse land is through the ownership of the NFT associated with it. The provides a providence of authenticity and the right to do with whatever you choose.

As the NFT is stored on the blockchain, with full ownership and an audit trail history, ownership can never be disputed.

Here are some of the things an individual can do with or on their Metaverse land:

  • Build on it
  • Virtually live on it
  • Create a business
  • Lease it
  • Develop on it and lease the building
  • Do nothing – and watch it increase or decrease in value

What many investors are interested in is either doing nothing and wait until they earn a high profit and sell it on to someone else, or potentially develop on it and lease out to corporations.

Although this will help the ecosystem it isn’t a great position for the Metaverse to be in.

Businesses will not come in the numbers needed to create a healthy return on investment on Metaverse land if every day people do not arrive.

No one is talking about buying land to build a home and be part of the Metaverse community.

With the high cost of Metaverse land right now it is only investors with deep pockets, or the uber-rich, that are in the market for buying virtual land right now.

Over or Underpriced?

Throughout the bull run of 2021 and early 2022 money poured into the cryptocurrency and NFT space like a never-ending waterfall.

Although the waterfall started to dry as the bear (market) started to drink it up, it nevertheless meant that many of the NFT projects were considerably overpriced.

This is evident by the number of NFT projects that ultimately failed. Trillions of dollars have been lost.

The difference here is that Metaverse land hasn’t failed. It has reduced in price but continues to be traded daily.

Let’s look at Decentraland as an example.

Decentraland on OpenSea

There are 97,700 pieces of land in the Decentraland Metaverse, and every piece of land has been purchased.

Land decreased in value by 50% between Winter 2021 and Summer 2022.

One of two possible things is going on here:

  • Decentraland land was overpriced and now the price has corrected to true market value
  • Decentraland land was priced correctly and is now undervalued

Metaverse land were not the only assets to be hit hard by the bear market of 2022. Cryptocurrency as well as stocks and shares were hit hard too.

NFTs have been the hardest hit, but this is because they are the highest risk and most speculative assets, and in a bear market the investments with the highest risk are always hit first and hardest.

Based on the eye watering prices of Metaverse land in 2021, it is highly possible the land was overpriced.

In a bear market it often means most assets are undervalued, and according to the Warren Buffet school of investing, buying cheap in a bear market whilst others panic, is a sound investment strategy.

This of course if the investment has good grounding and longevity – something the NFT and Metaverse industry is too early to assess.

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