There's an abundance of money to be made, but on the surface, it doesn't make a whole lot of sense. We read all about it so you don't have to.
If you've ever seen Ready Player One or almost any episode of Black Mirror, you can imagine what kind of future NFTs are hinting at. Everything is digital, but the money is very real. Digital homes and land are already being sold for hundreds of thousands of dollars and are only expected to pick up traction.
What are NFTs?
NFT stands for Non-Fungible Token. It's a digital asset that cannot be replicated or traded - sort of like a collectibles item. While you can swap 1 Bitcoin for 1 Bitcoin, NFTs are completely unique. Because they're unique, there's a ton of money to be made.
How do you make money with real estate and NFTs?
NFTs are typically hosted on some sort of platform, depending on what the NFT is - for example, land might be sold in the virtual game, Dectraland. Very long story short, the economy and real estate market within Dectraland runs similarly to reality with Parcels of land up for sale (represented as a token - $LAND). You can purchase LAND by auction with $MANA, with (today) 1 MANA = ~1.05 USD. The most expensive Parcel sold to date went for 2,000,000 MANA*. Once you've purchased a Parcel of land, it's yours to build upon. Without LAND, you can't really own what you build. In order to start turning a profit, LAND owners can make their assets productive (building, leasing, buying adjacent, selling, etc.)
*The price of MANA has dramatically increased in the last year, so this purchases was equal to about $175,578.00 at the time.
Why virtual real estate?
As someone who grapples over delivery fees, I can't quite make sense of it, but if there's anything we've all seen to be tried and true, it's the old saying, "Follow the money". The aforementioned Decentraland had it's initial coin offering (ICO) - essentially the cryptocurrency industry's equivalent to an initial public offering (IPO) - and raised $26M in only 30 seconds. If nothing else, there is money to be made.
Now thinking as someone who doesn't think twice about delivery fees, the peaceful, exclusive, virtual home sounds lovely. Especially with technology advancing every day, the possibilities are truly endless. This market was born from the rise of Virtual Reality and Augmented Reality - as cryptocurrency evolves and so does virtual real estate, the VR technology is sure to follow suit, creating a lively market for things like casinos, live music, or even starting businesses (someone's gotta run the concessions stand at the concert hall). Plus, with the rise of working from home, it's only a matter of time before meetings take place in a virtual restaurant.
If this all sounds crazy, perhaps lean into the crazy and be one of the first to open a virtual real estate office and offer your real life expertise. Metaverse Property is a joint venture created to assist in virtual property management, development, consulting, marketing, analytics, buying, selling, and renting. They're the first to do it and odds are good that those who get in early will reap the rewards over the next decade.
For more on Real Estate & NFTs, read on:
- Most Valuable Lands in Decentraland | Why are they Worth so Much?
- Decentraland Lords
- Non-Fungible Tokens (NFT): Beginners Guide
- People Are Paying Insane Amounts of Real Money for "Virtual Real Estate"
- Here Comes the Virtual Real Estate Boom
- Are NFTs a Game or Not?
- Top Digital Entrepreneurs Launch Metaverse Property