A version of this article was published in TIME's newsletter Into the Metaverse. Subscribe for a weekly guide to the future of the Internet. You can find past issues of the newsletter here.
The world of investing is rapidly evolving, with a new frontier emerging in the form of virtual land. Investors are now flocking to purchase non-fungible tokens (NFTs) and virtual real estate in the metaverse. What was once considered a niche market is now attracting attention from venture capitalists and savvy investors alike.
If the metaverse encompasses everything that exists virtually, from digital art to virtual worlds, then the acquisition of virtual land can be seen as just one type of metaversal investment. Platforms like The Sandbox, Decentraland, Cryptovoxels, and others offer users different experiences, from hyper-realistic graphics to gaming options and communities of early adopters. Celebrities like Snoop Dogg and Paris Hilton have already staked their claim in these virtual worlds.
But why are investors willing to pay real money for virtual land? The answer lies in the potential value and opportunities that these digital properties hold. Just like purchasing a domain name or securing a popular social media handle, owning virtual real estate allows individuals and brands to have a presence in Web 3. Unlike in previous iterations of the internet, Web 3 property allows users to create and control their own experiences, opening up a world of possibilities for personal branding, income generation, and interactive engagement.
For investors like Chris Adamo and the MetaCollective DAO, the potential for future growth and development is irresistible. They envision turning their virtual real estate holdings into a learning center or "university" within the metaverse, complete with virtual classes, dormitory rooms for rent, and a vibrant social experience. While these plans are still in their infancy, the investments made in virtual land are already showing significant returns, with the value of these digital properties skyrocketing.
The early success of platforms like The Sandbox and Roblox, which recently reached a valuation of $42 billion, is also attracting attention from investors. Research predicts that virtual gaming worlds alone could be worth $400 billion by 2025, with the broader metaverse industry surpassing $1 trillion. With such exponential growth potential, it's no wonder that investors are eager to get in on the ground floor of this digital revolution.
Of course, this new frontier is not without its challenges. The user experience and interface of virtual worlds still have room for improvement, and easy mass adoption is likely still a decade away. However, the momentum is undeniable, and the hunger for Web 3 investments is palpable. CNBC reports that virtual property prices have increased by as much as 500% since Facebook's transition to Meta, making some virtual plots of land as valuable as real-world houses.
While skepticism exists about the current valuation of virtual worlds and their associated assets, forward-thinking investors like Andrew Steinwold and Jessica Peltz Zatulove believe in the untapped business potential. They foresee a future where virtual real estate becomes a hub for commerce, with prime locations being rented out for stores, offices, and events. The market remains largely untapped, with billions of gamers worldwide primed for virtual experiences. The opportunity for financial growth and creativity is boundless.
Investing in virtual land may seem like a gamble, but for investors like Chris Adamo, it's a long-term plan that extends beyond his own lifetime. Whether these virtual properties become a passing trend or the next big thing remains to be seen. But one thing is for certain: the bubble is expanding, and the allure of the metaverse is undeniable.
Subscribe to Into the Metaverse for a weekly guide to the future of the Internet.
Join TIMEPieces on Twitter and Discord.
