Recently, prices for virtual land have fallen. However, according to Thomas Nascisonis, CEO of Crypto House Capital, economic factors are temporary and the metaverse will continue to grow.
The global economy, including the Web3 markets (crypto and NFT), is changing. After a catastrophic fall, cryptocurrencies such as ETH and BTC have fallen to about half of their all-time highs. Therefore, many are wondering how the bear market affects the metaverse and the virtual real estate market.
What place is left for technological innovation in the current cultural and economic climate? Let’s analyze the whole situation.
Metaverse: The Natural Evolution of the Internet
Given the amount of time we spend in front of screens, the evolution 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. However, contrary to what critics of Web3 say, having fun online does not mean abandoning Web2 (the current version of the Internet) or real life. On the contrary, the opportunity to establish a deeper connection through a new channel will give us access to new opportunities.
While the metaverse has received media attention, it seems that the public is more focused on more accessible VR/AR devices. Today, tech giants like Apple and Meta are working on these devices. But if the complexity of technology tools isn’t a problem for Web3 enthusiasts, it can be a barrier to entry for the average user.
Virtual Real Estate: What’s the Benefit?
What is virtual real estate in this theoretically unlimited digital world? Obviously we need to set some boundaries for the metaverse to be practical. Indeed, people do not need to run thousands of miles for the metaverse to become a social experience. However, getting used to all the things you can do in the virtual world takes some time. So creating a familiar and comfortable space can be a great starting point. In this way, buildings can act as points from which to start exploring the metaverse in a simple and user-friendly way.
Virtual real estate can provide that familiarity by pushing the boundaries of what’s possible in terms of design. Movable walls, changing colors and interchangeable furniture are just the beginning. In an instant, the same environment can turn into a futuristic oasis or any other place. The same space can be used as a home, concert hall, gallery, club, etc. This opens up many possibilities for us, because in this world the only limit is imagination.
The Importance of Virtual Real Estate for Brands
Large investors, corporations and service providers do not see the growth of the metaverse in the same light as ordinary users and crypto enthusiasts. Given the long-term possibilities, there is so much at stake that these players cannot ignore it. Therefore, temporary market conditions do not prevent them from launching into the metaverse.
Nike, Zara, Samsung and Burberry are just some of the big players who are currently looking to set foot in virtual worlds. In the future, presence in the metaverse will become not only a competitive advantage, but also a determining factor in brand success.
And so we return to the idea that the metaverse is attractive for its long-term potential and that it was never intended for quick gain. In such a vast and new universe, obstacles will be inevitable. However, if the metaverse gets as big as the Meta expects, companies will no longer be able to ignore it. It is estimated that the market capitalization of the sector could reach $1.6 billion by 2030.
To have a presence in the metaverse, a company must have a virtual headquarters that provides services and offers a meeting place for both organizing events and marketing campaigns. In short, any decent brand will need virtual real estate.
Indeed, functional and design trends will be decisive factors in the future of the metaverse. Thus, owning virtual real estate means that you will be able to shape 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. But if the metaverse develops as expected, buying a piece of land could cost a lot more than we’ve seen so far. Of course, there are many variables to consider. For example, we don’t know if Decentraland and Sandbox will retain their market monopoly. Thus, in the coming years, virtual worlds may rise and fall in terms of their usefulness and popularity.
For those who believe in the potential of the metaverse, this market crash is just a slight delay caused by poor economic prospects. Of course, the economy will always fluctuate, but a huge new world like the Internet3 can only exist. Indeed, in five years, the popularity of virtual worlds and their economies will become more evident.
However, the metaverse is still in its infancy and has not yet reached the mainstream. Therefore, it is too early to say that the potential of virtual real estate has suffered.
If we start from a short-term perspective, we can say that the global economy has been hit hard by the crisis and that it has affected all its sectors. On the other hand, if we think about the long term, we understand that virtual real estate is still far from reaching its full potential and for now the signs are quite favorable.
about the author
Thomas Nascisonis is the CEO of Crypto House Capital. With over 20 years of experience managing real estate, oil and technology companies, he multiplied his success before discovering the world of web3. Today, he is fully focused on advancing and exploring the metaverse.
Mr. Nascisonis, who is currently working on a new virtual real estate project, describes himself as the creator of the metaverse community.
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