Is Virtual Real Estate Still Profitable?

Recently, the prices of virtual lands have decreased. But according to Tomas Nascisonis, CEO of Crypto House Capital, the economic factors are temporary and the metaverse will continue to grow.

The global economy, including Web3 markets (crypto and NFT), is changing. After a catastrophic fall, cryptocurrencies such as ETH and BTC have fallen to around half of their all-time highs. Therefore, many wonder how the bear market affects the metaverse and virtual real estate market.

What room is left for technological innovations in the current cultural and economic climate? Let’s analyze the whole situation.

Metaverse: A natural evolution of the web

Given the amount of time we spend in front of our screens, the development of the internet was inevitable. The Metaverse represents the next natural step in this evolution, as it will allow users to fully immerse themselves in the digital world. But contrary to what critics of Web3 say, having fun online doesn’t mean leaving Web2 behind. (the current version of the Internet) or real life. On the contrary, being able to connect us more deeply through a new channel will give us access to new possibilities.

While the metaverse has caught the attention of the media, it seems the public is more focused on more affordable VR/AR devices. Today, tech giants like Apple and Meta are working on these devices. However, if the difficulty of technological tools is not a problem for Web3 enthusiasts, it can be a barrier to entry for the average user.

Virtual Real Estate: What’s the Use?

What does virtual real estate represent in this theoretically limitless digital world? Obviously, we need to put some limits on the practicality of the metaverse. In fact, people don’t have to run thousands of miles for the metaverse to be a social experience. However, it takes some time to get used to all the things you can do in the virtual world. So creating a familiar and comfortable space can be a good starting point. Buildings can therefore act as points where one can start the experience of the metaverse in a simple and user-friendly way.

Virtual real estate can provide this familiarity while pushing the boundaries of what is possible in terms of design. Moving walls, changing colors and changing furniture are just the beginning. In an instant, the same environment can transform into a futuristic oasis or any other location. The same space can also be used as a home, a concert hall, a gallery, a club, etc. This gives us a lot of possibilities, because in this world the only limit is the imagination.

The importance of virtual real estate for brands

Big investors, companies and service providers do not see the metaverse’s progress in the same light as ordinary users and crypto-enthusiasts. Given the long-term options, there is so much at stake that these players cannot ignore it. Therefore, temporary market conditions do not prevent them from launching in the metaverse.

Nike, Zara, Samsung and Burberry are just a few of the big players currently looking to set foot in virtual worlds. In the future, presence on the metaverse will not only be a competitive advantage, but also a decisive factor for a brand’s success.

So we come back to the idea that the metaverse attracts for its long-term potential, and that it was never designed to bring quick wins. In such a large and new universe, obstacles will be inevitable. But if the metaverse becomes as big as Meta expects, companies will no longer be able to ignore it. According to estimates, the sector could reach a market value of $1.6 billion by 2030.

To be present in the metaverse, the company must have a virtual headquarters that provides services and that offers a meeting place both to organize events and to carry out marketing campaigns. In short, any brand worth its salt needs virtual real estate.

Indeed, functional and design trends will be the determining factors in the future of the metaverse. Therefore, owning virtual real estate means that you will be able to shape a part of the digital world. This is where brands can begin their game of power and influence.

Current situation vs long-term vision

Market trends are constantly changing. However, if the metaverse develops as expected, it could cost a lot more to buy a lot than we’ve seen so far. Of course, many variables must be taken into account. For example, we do not know if Decentraland and Sandbox will retain a market monopoly. Virtual worlds may therefore rise and fall in terms of their usefulness and popularity in the coming years.

For those who believe in the potential of the metaverse, this market decline is just a slight delay caused by the poor economic outlook. Of course, the economy will always fluctuate, but a new world as extensive as the web3 can only endure. In fact, the popularity of virtual worlds and their economies will be more evident within five years.

That said, the metaverse is still in its infancy and has yet to reach the mainstream. Therefore, it is still too early to know whether the potential of virtual real estate has been negatively affected.

If we start from a short-term perspective, we can say that the world economy is badly affected by the crisis and that all its sectors are affected. On the other hand, if we think about the long term, we realize that virtual real estate is still far from reaching its full potential, and for now the signs are quite promising.

About the author

Tomas Nascisonis is the CEO of Crypto House Capital. With more than 20 years of experience in managing real estate, oil and technology companies, he multiplied his successes before discovering the world of web3. Today, he is completely focused on promoting and exploring the metaverse.

Mr. Nascisonis, who is currently working on a new virtual real estate project, describes himself as a metaverse community builder.

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