“The real estate can’t be speculated” in the Metaverse

Crying, the real house has not been bought yet, and the virtual world has begun to speculate.

If it is said that the first to make money in the meta universe is to sell courses, then the one who makes the most money may still be able to speculate in the meta universe. 

On November 23, on the virtual platform decentraland, a virtual plot consisting of 116 plots of about 4.8 square meters with a total area of ​​about 565 square meters was sold for US$2.43 million, or about RMB 15.52 million. The buyer is Metaverse Group, a subsidiary of Tokens.com Digital Asset Investment Group.

In this regard, the first feedback ushered in was the complaint of netizens: the end of the universe was still buying a house, and it was not possible to escape the fate of buying a house in the meta universe…

With the announcement of Facebook’s change of name to Metaverse, Metaverse immediately set off a carnival. In an instant, everything can be Metaverse. Even real estate, which was previously considered difficult to digitize and virtualize, is no exception. However, contrary to real life, it seems that there is only “house speculation” in the metaverse.

"The real estate can't be speculated" in the Metaverse


Digital “Land King” was born

 The digital land sold in Decentraland once again set a new price record for virtual real estate.

What concept? In other words, the average price reaches 27,400 yuan per square meter, which is equivalent to the price of a 100-square-meter house on the third ring road in Beijing and the inner ring road in Shanghai.

Why is it breaking the record again? Because Metaverse has already started land finances and has made great strides. It is not cheap to buy land here.

As early as 2010, a British online game player sold his virtual real estate in the “Entropia Universe” game for a high price of $635,000.

The Decentraland mentioned above was established in 2017, and the last transaction record of virtual real estate occurred in June this year. The buyer is Republic Realm, a real estate investor and developer of Yuan Universe, who purchased 259 digital plots in Decentraland for 1.295 million MANA coins at a price of approximately US$913,000. This has been with the New York Brooklyn quite real prices of Brooklyn.

"The real estate can't be speculated" in the Metaverse

(Decentraland’s land and real estate can be freely bought and sold with tokens)

It is worth mentioning that most of these digital land uses are used for commercial real estate, and high-priced residential buildings have not yet appeared in Metaverse. Tokens.com, the buyer of the “Land King” mentioned above, also announced that it will build the land into a digital fashion industry for holding digital clothing shows and selling virtual clothing.

In fact, although no authoritative organization has made a clear definition of the meta universe, most technology companies define the meta universe from a standpoint that is beneficial to them, and the layout is fragmented.

The essence of the meta universe is still a derivative product based on blockchain technology. Due to the decentralized nature of the blockchain itself, supply and demand relations and celebrity effects have become the main reasons for its price changes.

For example, Zuckerberg once said that the metaverse allows “people to find work and living space wherever they live.”

Changpeng Zhao, the founder of Binance, also said that the mapping of NFT meta universe and physical assets is empowering a new future of Internet of Everything.

In addition, Tesla Chairman Musk, Bitcoin.com Executive Chairman Roger Ver, etc. have all been passionate platforms for Metaverse…

Celebrities in various fields have passionate and grand visions of blockchain and meta-universe, which have had a huge impact.

Although many opinion leaders did not directly express their views on real estate in Meta Universe, there are also cross-border celebrities who have begun to bring their own goods.

On November 23, the same day that the digital land king came into being, JJ Lin posted on Twitter that Decentraland had purchased three virtual land parcels. The three digital lands are all purchased on the OpenSea NFT market. The price of each land is 6000 MANA, and each land is about 30,000 US dollars.

"The real estate can't be speculated" in the Metaverse

Such celebrity purchases will also lead to price increases. An unnamed financial practitioner said that there are two possibilities in the future for the current rise of Metaverse-related digital assets:

 One is to pass the flowers through drums, and finally return to nothingness. Jiang Han, a senior researcher at Pangu Think Tank , said that there is still a long way to go before the real realization of the metaverse, and the so-called construction of the metaverse concept and the hype of real estate on it without a consensus on the technical realization of the metaverse It is “beating the drum to spread flowers”, a bubble with no value.

The second is to be recognized by the market and become a normal state in the future. There is indeed a certain Ponzi scheme at the moment, but the Ponzi scheme is also a stage of industry development, and enough funds can be absorbed to do good things.


What are the similarities and differences between digital land and real land?

Direct view, digital land is the source of an Internet network company. The real source of land is the governments of various countries. After the land is purchased, the government still has many plans for the land, such as floor area ratio, supporting facilities, and even price restrictions.

Real estate transfer in the real world involves real estate transactions through money, and the transaction process involves banks, financial companies, lawyers, and property rights companies. And all property rights and transaction behaviors in the meta universe are traceable, which means uniqueness, privacy, and ownership. Digital land has many fewer restrictions on the land itself, transaction process and other links.

But in fact, as Baidu Vice President Ma Jie said, Metaverse is essentially a process of virtualizing and digitizing the real world; as many philosophers have explained, the bottom layer of intelligence is still the reality layer.

Virtual digital real estate actually also applies the business logic of real real estate.

One is to do business with a good location. Just like in real life, the location of virtual digital real estate is also important. Geographic location and supporting facilities are often the most important factors affecting the price of virtual real estate.

"The real estate can't be speculated" in the Metaverse


 Take Decentraland as an example. Usually the land close to popular areas is more valuable than other land, and if good supporting shops or facilities are built around a land, the price of the land can also increase.

In addition, according to foreign media reports, when South Korean youth buy a house in the Metaverse World, the real-world land in Gangnam District of Seoul, which is located in the center of the city, is still the most popular in the virtual world.

Second, scarcity is still the source of value support created by the virtual world. For example, Tianxia Show, a well-known domestic meta-universe concept company, launched its own “Rainbow Universe”. Tianxia Show said that after the first round of the Rainbow Universe Game’s open beta, only 20,000 houses can be obtained for free in the early stage, accounting for 5.7% of the overall listings. From October 28th to November 15th, this batch of real estate was put on sale in four batches at different time periods, and a lottery was required to obtain the qualification to buy a house. The current sales are booming. The first house has been sold out. Users are asking about the second batch of launch expectations every day. After the first user gets the house, many people choose to sell it in salted fish.

Third, there is also room for appreciation. Although Meta universe real estate does not use attributes, it has both transaction attributes and circulation attributes. It can be said that it is the same as a real house except that it cannot live.

But the reality is that even if there is no product, the market will pay for it as long as it follows the right direction. With the value attribute and the transaction can be circulated, the commodity has room for appreciation. This is the same in the virtual real estate in Metaverse.

But after all, virtual digital real estate and real real estate are still separated by the “real” gap that cannot be crossed. Why do people still spend a lot of money and enter the meta-universe “real estate”?

 One is because investment properties are greater than residential properties. The scalping of virtual digital real estate assets has a unique fixed coordinate (x, y) and the corresponding owner, so the price may also appreciate in several scalping.

 The following picture shows the latest LAND transaction as an example. This virtual land was first sold for only US$113 at the end of 2017. After 5 resales, the price increased 214 times.

"The real estate can't be speculated" in the Metaverse

(Screenshot from NonFungible website, about Decentraland transactions)

 Many participants also said that virtual land parcels are very valuable for investment, and the virtual land parcels bought as digital assets must be passed on to future generations…

 The second is immersive experience and “unlimited” freedom.

 As Zuckerberg mentioned, there are two very important basic elements in the meta-universe: virtual avatars and personal space. Human experience and feelings are the original intention of most ordinary consumers, and their own personal space is undoubtedly a major selling point of virtual real estate.

Although most users buy NFTs and virtual land for speculative reasons, some users do so because of their association with these virtual environments. For example, what they want first is immersive experience and freedom of imagination without physical limitations. 

"The real estate can't be speculated" in the Metaverse

(Just like a scene in Decentraland: This is your world) 

What they get is not only virtual digital real estate, but also the freedom to develop virtual land at will according to their own imagination. You can build your own virtual house, establish your own brand, or display your own non-functional game collection for users to visit and appreciate.

In terms of architectural design, the meta-universe will not be affected by the laws of physics. As long as you want, buildings of various shapes can be built. Even if the land is only 500 square meters, the building can be enlarged by building thick and thin buildings. area.

In addition, Metaverse’s virtual buildings are highly interactive, making them the biggest difference between virtual real estate and real real estate. What everyone needs more is the atmosphere.

"The real estate can't be speculated" in the Metaverse


Meta universe cooling

 Not only foreign countries, but also domestic real estate speculation by Yuan Universe.

The “Rainbow Universe” project launched by Tianxia Show mentioned above seems to be more like a real estate transaction with a house version…

The “Rainbow Universe” platform will issue a total of 350,000 virtual houses, with a total of 13 room types, each with different circulation and scarcity. Some people describe the big difference, you can refer to Beijing from the inner ring to Yanjiao, the house is classified into SSS, SS, S, A, B from high to low, and the house price ranges from 8.88 yuan to 88 yuan.

However, according to internal test users, there are many bugs, such as mold-piercing, blurry picture quality, extremely poor interactive effects, no sound, and some functions are not applicable. These are still minor bugs, and some players have even seen the house disappeared in place. Bug…

In this regard, some game company employees said that this is pure hype, it is better to play Final Fantasy 14, at least this game has no bugs and some real meta-universe experience.

But its popularity remains unabated. According to official sources, the number of user reservations has exceeded 50,000 on the first day of the online booking activity. And so far, more than 130,000 users have registered to snap up. Some users said that an island villa was fired to 530,000…

"The real estate can't be speculated" in the Metaverse

(Rainbow universe ring sea island sold on salted fish)

 However, on November 18th, Tianxia Show published an open letter claiming that Rainbow Universe is still in the grayscale test stage, that is, there is no product yet. Only by proposing ideas and continuously releasing news, Tianxia Show has relied on “selling houses” to collect millions of dollars.

Based on this chaos, some people believe that Metaverse real estate is a bit overheated, and that Metaverse’s companies are still competing, and there is no leader. The current Meta universe real estate may be the same as the tulip in the 16th century. After its glory, it will plummet and cause a chain reaction, which will cause the user’s assets to plummet and the Meta universe platform to collapse.

There is a bubble in the physical real estate industry, which is well known, and it is the same in the meta universe. The squeezing bubble of the meta universe, but not the real estate bubble, but the bubble of the meta universe.

On November 25th, People’s Daily Online published a commentary stating that since this year, celebrities, big Vs, and companies have created and launched their own NFT products, and digital artwork has become one of the fastest application scenarios for NFT.

At present, the hype about the concept of NFT and meta universe has spread to listed companies and the secondary market. Some behaviors such as rubbing hot spots and speculating concepts are also arousing the vigilance of the regulatory authorities. Industry insiders believe that the domestic legal nature, transaction methods, supervision subjects, and supervision methods of NFTs are not yet clear. NFTs have risks such as speculation, money laundering, and financial productization. They should be cautious about NFT investments and be wary of “drumming and spreading”. Financial scam.

 People’s Daily Online’s article was interpreted as the official media’s statement that Metauniverse was overwhelmed. On the same day, Metauniverse concept stocks began to plummet.

Some investors directly asked Caesars Culture , a meta-universal concept company , whether there is a hot spot in the meta-universe. The company’s statement is also very official and has no impact on the company. The game background environment code-named “Animal Planet” currently under development by the company is designed in accordance with the model of the meta-universe concept. R&D requires a certain period of time, and there is still uncertainty.

At present, the meta universe is undoubtedly an unprecedented grand narrative, and there is still a long way to go before it can be realized. At present, more applications are also in the development of virtual technologies such as games and VR. In other words, we seem to have not yet clarified and clarified the essential definition of the meta-universe, but it has already begun commercial development.

Information technology is developing at an unimaginable speed. In the increasingly dazzling appearance and comfort created by the Internet, people have gradually lost their original intention of pursuing space and exploring the universe. Compared with the real “wandering earth” full of difficulties and dangers, they More willing to experience virtual space in VR. This is like a saying: “You said the stars and the sea, but you only gave me Facebook.”

“Three-Body” writer Liu Cixin once stated in a speech that the meta-universe will be an involution of the entire human civilization, and the entropy of the enclosed closed system will always tend to be the largest.

 As a result, people have also aroused more reflections, is the meta-universe really the future development direction?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-real-estate-cant-be-speculated-in-the-metaverse/
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