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Although real estate is often considered a safer investment compared to stocks, it is not possible for everyone. Therefore, reality makes many look to the digital sphere as an alternative.
Analysts continue to view real estate as a reliable and profitable investment, based on its history of higher returns, especially when compared to traditional stocks.
In many ways, stability can be likened to the principle of scarcity, which determines demand. But, ultimately, there are a limited number of pieces of land available in the world today, unless researchers go beyond Earth. Another advantage of real estate is passive income, as many real estate investors make money through rental payments, which provide a steady stream of income in addition to increasing the value of the property. Of course, using an asset in the form of real estate makes investments more affordable, allowing users to expand their assets even without having enough cash.
However, real estate is not an ideal investment for every investor, despite the numerous benefits. Unlike other assets that can be acquired gradually, real estate requires the owner to accumulate a significant amount of money before making a down payment. Concerns about upfront payments are the second most risky when investing in real estate, as they cannot be easily addressed to meet an urgent need for cash. Therefore, despite the benefits of investing in this asset class, the barriers are still relatively high compared to other traditional destinations.
To fill this affordability gap, land in the metaverse, also known as NFT land, is a fast-growing sector in which many players benefit from similar opportunities to create passive earnings and increase their wealth without the drawbacks or limitations imposed in the real world. Some of these examples include seemingly unlimited opportunities to test an investor’s creativity by creating a custom storefront, home, business, or even an entire community to your liking. Of course, all of this can be done with the help of security, which is provided by blockchain support, which verifies the authenticity and ownership of each original site.
As the platforms of the metaverse continue to grow and more people begin to visit these worlds, digital land owners make a profit by renting out land, selling it, building virtual property or business, or exchanging it for other FTTs.
Thus, as the boundaries between digital and physical reality become increasingly blurred, the NFT land continues to be positioned as an equally lucrative sibling of traditional real estate.
A closer look at the virtual earth
To define this concept, imagine that digital reality exists in a virtual space that tech investors, crypto enthusiasts, and the general population define as the metaverse. On most platforms, users will find a realistic experience by relying on a three-dimensional setting and therefore providing users with an immersive element that in many ways reflects the real world.
These projects are often divided into smaller plots and sold as “land” or “plot” offers, like the physical world. Each plot is often bought with its own asset cryptocurrency, although some projects may accept fiat.
For some, however, the question remains largely unanswered: Why buy something in the digital world rather than the physical one? As movies like Ready, Player, One prove, the virtual world is just a place where people can meet their social needs, so more and more people are joining these platforms. From another point of view, many look at the inhabitants of poor countries, who may never be able to lead the same real way of life as multimillionaires. For some, virtual reality (VR) has been seen as a bridge to overcome this inequality – a great equalizer.
The third factor concerns trends in how and where people spend their time. As more people interact online, it makes sense that the assets they want to show their peers, or their “twists,” could exist in the digital realm. For these reasons, the transition from the physical to the digital space may not be the same.ill-advised, as skeptics once thought.
Last but not least, research into the many digital business applications that make a profit is still in its infancy. Following the COVID-19 pandemic, several organized events and conferences have already been moved to a virtual environment, allowing team members from around the world to participate in them. Thanks to cost savings from plane tickets and closer collaboration, many aspects of virtual workplaces will be preserved even as the world returns to its traditional format.
Author: Anton Zaitsev, Analyst at Freedman Club Crypto News
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