Many of us still remember the real estate bubble with some discomfort. House prices went way up to unrealistic levels and the whole thing blew up. We were talking about real houses, made of brick, Now many are beginning to talk about a future real estate bubble, too, but a virtual one, in the metaverse. A world that does not exist and in which prices are growing without control.
Virtual floor rush
During the years of pitch real estate, the formula for getting rich was apparently simple. Buy a house for 100 and sell it soon after for 500. On paper it was a seamless business with beastly profitability. But this caught many on the wrong foot and while the first who opted for these speculative strategies did very well, those who lagged behind exploded in their hands and the value of their purchases plummeted.
Something like this they think could happen in the metaverse, since in this virtual world if it has something new is that users can be the sole owners of certain portions of it. Be it objects in the form of art, virtual cars or even houses or land. Now we begin to know the first information that indicates that also in this virtual environment an artificial rise in prices could be brewing of fixed assets composed of pixels.
There is no more to review the testimony of some owners of virtual land in this metaverse, which they have already verified that the value of their properties is rising like foam. Not surprisingly, a few months ago a virtual plot of land was sold in Decentraland, one of the most desired spaces in that virtual universe, for no less than 2.4 million dollars. Kevin Clark is one of those who took the risk of buying land in this space to spend a more pleasant confinement during the pandemic.
And according to his own testimony, the lands he bought at the time for around $700 are now well could sell for as much as $20,000. On these lands, he has built a virtual communication medium, in which he is dedicated to interviewing the inhabitants of the metaverse and broadcasting it through Twitch, so it could be said that this is one of the first known hybrid businesses.
Bubble across the board
The fever for the metaverse is not limited to buying virtual land to sell it more expensive shortly after, but there are more and more cases of people who even accidentally have earned a lot of money within it. NFTs have changed everything and the possibility of replicating any aspect of our society, with property titles through, is leading many investors to put money into this new world.
A virtual ecosystem that we are shoehorning the main stakeholders that we use it, as Mark Zuckerberg himself has amply demonstrated, and that in reality it is still a Second Life more visually and technically sophisticated. Although with a big difference: now it is possible to be virtual owners by investing real money, which is fertile ground for speculators.