June 28, 2022
It is no secret that the Metaverse trend is becoming increasingly popular. It has mainly been making headlines a couple of months ago, with Venture Capital investing to secure a plot of land in the Metaverse. This is a new concept that many people struggle to understand: why would someone spend so much money just to buy something virtual in a game? More importantly, what are these people buying, and why do they think that land in the Metaverse is worth so much? This article will explore what it means to buy land in the Metaverse, and why so many people are paying close attention to it.
As a disclaimer, it is important to note that the people spending millions of dollars on land in the Metaverse tend to be VCs. These people have ample funds at their disposal, and could afford to lose. That is what a VC is all about, after all: look for extraordinary home runs, knowing that most investments might fail. However, some venture capitalists believe that the Metaverse is not over-hyped, and it could continue growing exponentially over the next 10 years.
Interested in the Metaverse? Here are some Metaverse companies to keep an eye on in 2022.
Although we do not know who will be the winners in this space, VCs are willing to place large bets now, just in case their vision plays out as expected. Time will tell if the Metaverse is truly the next wave and not some over-hyped, over-invested new technology like Virtual Reality was in 2015.
So, what does it mean to buy land in the Metaverse? The answer is simple: you are buying a parcel of virtual land in a game that nobody else can own or claim. Just like physical land is scarce in reality, digital land can be as well. In real life, land in a city is finite. For example, one cannot add more land to the city of Paris. This is why prices in Paris tend to be so competitive: as more people want to live inside of the city than there is space in the city, prices go up.
This same principle applies to virtual land. This land is limited in space, and therefore people need to compete in order to own a piece of the land. The Sandbox Metaverse, for example, only has 166,464 LANDs (parcels of land) that can be purchased, traded and built on. The Decentraland Metaverse has 90,601 LANDs that can be sold. This means that very few people will ever be able to own a parcel of land, let alone a large plot of land like these large whales are able to do.