The current state of the world economy, including web 3.0 markets (crypto and NFT) is in full flux. After a dire fall, cryptocurrencies like ETH and BTC hover at around half the value of their all-time highs. This has led many to wonder how the bear-bull dance impacts the potential of the metaverse, as well as virtual real estate. Where do the wildly hyped technological advancements fit in to the current cultural, and economic climate? Let’s consider the bigger picture.
The Metaverse as a Natural Evolution of the Web
The evolution of the internet was inevitable, considering how much of our lives are spent looking at screens. The metaverse is the natural next step, as it will enable users to fully immerse themselves in the digital space. That said, being able to experience virtual entertainment is not a matter of excluding web 2.0 – the current state of the internet – or real life, despite what many critics state. On the contrary, being able to connect more deeply via a new medium will open up exciting opportunities.
While the metaverse has captured the attention of the media, it seems that the public is more focused on the development of affordable VR/AR devices, which tech giants like Apple and Meta are currently working on. The lack of available user-friendly technology may not be an issue for web 3.0 enthusiasts. However, it remains an entry barrier for the casual user.
Metaverse land: The Utility of Virtual Real Estate
What does virtual real estate represent in a theoretically unlimited digital world? Surely some sort of limits need to be established for the metaverse to be practical. People can’t be running around spread across thousands of miles for it to be a social experience. Still, getting used to the many things one can do in the metaverse requires some time for any user. Creating a familiar, comforting space can be a great place to start. Buildings, therefore, can act as points where the metaverse experience begins in an inviting, understandable manner.
Virtual real estate can provide familiarity, while also stretching the boundaries of what is possible in terms of design. Seemingly strange implementations of constantly morphing digital walls, ever-changing colors, and shape-shifting furniture is just the beginning. In an instant, the same environment may transform into a futuristic oasis, or something else entirely. Imagination is the only limit here. The same space could act as a home, music venue, gallery, club, and more. That makes for a lot of possibilities.
The Importance of Virtual Real Estate for Brands
Large investors, businesses, and service providers are apt to view the rise of the metaverse in a different light than regular users and enthusiasts. Considering the long-term opportunities, too much is at stake to miss out on the metaverse space. Therefore, they do not consider the temporary market conditions as important as establishing a meta-presence. Nike, Zara, Samsung, and Burberry are just a few of the big players currently aiming to leave a mark in the virtual worlds. This not only puts pressure on the competition; in the future, it could be the determining factor of a brand’s success.
It comes down to the notion that the metaverse is being considered for its long-term benefit. It was never meant to bring a quick return. In such a vast new space, at its very beginning, bumps in the road will be inevitable. However, if the metaverse will grow to be anywhere near as big as Meta is planning for, missing out commercially is not an option. The projected metaverse market value of $1.6 billion by 2030 also points in that direction.
A commercial metaverse presence requires headquarters to provide services, have a social meet-up spot for both hosting events and marketing purposes. In short, any brand worth its salt will need a piece of virtual real estate. The functional, as well as the design trends will be the deciding factors in shaping what the metaverse will become. Therefore owning a space will mean that you get to shape a part of the digital world. That is where a power-play for brand influence could commence.
Metaverse land: Temporary Conditions Vs. The Larger Vision
Market trends come and go. But if the metaverse grows as expected, securing a location for making a statement could be worth well beyond the sums we have seen plots go for. Surely, there are many variables to be considered. Whether Decentraland and Sandbox will maintain their power position is not certain. Metaverse worlds could rise and fall depending on their utility and popularity in years to come.
If one believes in the idea of the metaverse, then a sheer downtrend in the market is but a small hurdle due to unfortunate global circumstances. The economy will fluctuate, but something as vast as the new, immersive internet 3.0 will live on. The popularity of virtual worlds and their economies will be clearer half a decade from now.
The metaverse is in the launch stage and has yet to reach orbit. It is far too early to make assumptions on whether the potential of virtual real estate is impacted in a negative way.
From a short term-perspective, the global economy is taking a hit, and that affects all facets. In the long term, virtual real estate still has not come near to showing its scope and applications. For the time being, there still is room for healthy excitement about what is to come.
About the author
Tomas Nascisonis is the CEO of Crypto House Capital. He has over 20 years of experience managing and developing real estate, oil, and tech businesses. Tomas has achieved numerous successes in his professional career. Now, fascinated with the promising potential of web 3.0, he is fully dedicated to fostering and exploring the metaverse space. Nascisonis describes himself as a metaverse community builder and is currently working on bringing value to virtual residents of an upcoming virtual real estate project.
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