Meta-universe concept is hot, is virtual real estate worth investing in
Meta-universe concept is hot, is virtual real estate worth investing in
After the metaverse started to explode last year, many people started to pay attention to the metaverse virtual real estate, for example, likedecentralandWhen the meta-universe infrastructure is not yet perfect, it is worth pondering whether investing in virtual world plots is a wise choice.
Virtual Land
People are speculating on land parcels, but what are they actually speculating on
In the real world, land is a carrier of life for people, and social activities such as clothing, food, housing and transportation are carried out on it, and because of this, land has been an immediate need for social activities from ancient times to the present, which explains why real estate took the lead when society moved from turmoil to stability, the essence of which was caused by people's demand for social activities.
When we put this set of theories in the meta-universe is it feasible? The answer is of course it works. Blockchain metaverse games such as decentraland and sand, which have the common feature of providing a fixed number of virtual world plots to provide a vehicle for players to conduct social activities in the virtual world, naturally start to rise in value for the plots when there are more and more players in these games.
The number of players and the value of the plot rise simultaneously which is similar to the increase of real visits to a web2 website and the increase of activity on the face of a public chain, which brings users attention and intangible assets such as brand influence, a brand asset that we can easily find similar cases in web2, such as WeChat, QQ, or Baidu and other Internet giants.
Just like the domain names in the web1 and web2 worlds, the "domain names" in the metaverse world are actually land parcels, and various ".com", ".net", ".io", etc. are like various land parcel projects in the metaverse. "io", etc. are like various land parcels in the meta-universe. When people buy a land parcel in a project, it is actually equivalent to registering a domain name like "xxx.com". When people speculate on land parcels, they are actually speculating on the "domain names" of the metaverse.
What are the risks of speculating on land parcels
Like real estate in the real world, web1 and web2 are domain speculation, while web3 is meta-universe land speculation, they both have a problem, that is, the total amount of these resources, real-world real estate, especially houses, its total amount is mainly controlled by the state, such as China's special division of industrial land, residential land and arable land and a variety of properties, different plots of land have different This can regulate the use of land. In web1 and web2, domain names are basically unlimited, people have a variety of choices such as .com, .cn, .net, etc. Meanwhile, the length of domain names can be infinitely long, but the real valuable domain names are limited, and the valuable domain names are mainly to the short character set, such as qq.com, jd.com and other such convenient memory domain names, which belong to the rare resources of web1 and web2. and therefore have been worth a lot of money. Although top-level domain names can continue to increase, but this also requires a lot of infrastructure costs and servers, so for web2, in a certain period of time, convenient memory domain names are still a scarce resource.
The situation may be different for web3 and metaverse "domain name" virtual plots, as metaverse virtual world projects are simpler to build, and most of them are still transformed by traditional game software as a template, so the corresponding project cost is low, so there will be a big explosion, especially in the current metaverse ecology in the The metaverse ecology in the early stage, so the number of virtual plots here will increase with the increase of projects, plus the metaverse projects are not controlled like traditional land and top-level domains, so there are a large number of blockchain projects with virtual plots as the theme, and this is also accompanied by the generation of a large number of bubbles, which is the biggest risk in the metaverse virtual plots.
In short the emergence of a large number of projects will inevitably lead to the failure of less competitive virtual land projects in the end, thus making the corresponding investors lose their money. This situation is also similar to investing in startups, which is ultimately reflected in people's attention to the project and the value of the project itself.
Another one is that virtual land speculation actually plays some negative effects on the development of the metaverse itself. Restricting the experience of some new players to the metaverse makes players who come in later need to spend a lot of money to buy some plots of land, which naturally reduces the activity of user players.
It is also because of this that free meta-universe projects like Baidu and Facebook have started to be built. Such meta-universe projects do not focus on the hype of plots, for them, partly to avoid regulatory scrutiny, but still play a big role in cooling down the hype of virtual plots.
To sum up
The speculation of plots is actually a way of people's layout of the meta-universe and a reflection of business, the meta-universe needs to develop business, and this is an important factor to support their existence going on. For the speculation of plots with valuable projects, it is actually an investment behavior in essence, when the business groups are willing to pay for it, it is actually the time when their brand and meta-universe projects are bound, which further increases the overall value and Influence, and for the weaker influence of the virtual parcel project, investors need to be vigilant, once the project fails, then the virtual parcel in hand is the same as most cottage coins in 17 years, and finally worthless.
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