Metaverse land vs. Real estate.

Everybody wants to have a better future and while we are still young we do everything that we can to invest our money into things that will yield a higher return in the end. The biggest challenge that every investor is facing nowadays is the question of where they should invest their money and what are the risks that they may possibly face when they enter such investment.

We will take a look on these two investments that have gained so much attention while hoping for the best result that we can get out of it. It seems that everyone of us is so much familiar with real estate investment because this is something that we often hear from social media, friends and even family members. But what is really real estate investment and how it differs from metaverse land?

Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.

People have been entering into real estate investing since 1960 and until today this has been widely accepted as a good form of investment. However, there are downsides and upsides that we may get out of it. One of the downsides that we can see while investing into real state property is the immobility. The geographic location of any parcel of land can never be changed. The location and area of preference may also depend on what is available. You can have your home of choice if you were able to buy the property earlier than others but if you came in late, then you have no choice but to buy on whatever is available.

The term metaverse can be traced back to Neal Stephenson and his dystopian cyberpunk novel Snow Crash. The novel was released in 1992, and it’s considered a canon of the genre, along with William Gibson’s Neuromancer, which describes a virtual reality dataspace called the matrix.

Since Facebook rebranded as Meta on October 28, 2021, the nebulous concept that inspired the new name has been a hot topic of discussion. It opens the door of metaverse land to get known to the people. This metaverse concept was not that clear to the people until the blockchain technology and crypto currency came in.

Since then metaverse land has been available for public by gaining ownership on that particular asset. This is a digital asset where people can do whatever they want on that certain property. Not only individual users are buying on the metaverse land, but also companies who are interested to invest on it are riding on the hype. Some of the most well knowns metaverse games are Decentraland, Sandbox and Axie infinity. They have their own tokens that you can use for buying and selling.

There are downsides and upsides that we can see when we invest in these things. One of the upsides is the idea of how liquid it is. You can definitely buy any of the property of metaverse land without worrying about your location. Since everything happens digitally you won’t get the hassle of maintaining the order of this asset. You don’t need to hire someone to take care of this property and keep an eye on it. In metaverse it is not dependent on where you actually live. You do not have to worry also about the economic uncertainty and political uncertainty of the asset because unlike real estate property the value of a certain asset would not depend on the economy of the country where you live in.

For metaverse it is easy for people to jump in and jump out. But the downside of investing in metaverse is the uncertainty of a certain project that you have bought in. The success of your investment would definitely depend on how good the project is.

If the developers are not doing so much marketing about their product and if they just rely on the people to come in and buy their assets then there is really no clear direction on where that project is heading into. Now that you know the pros and cons of investing in real state and metaverse land, then it is up to you on where you should put your money in. Just always remember that you should only invest the money that you can afford to lose. And as always, this is not a financial advice.