The world of real estate is more than houses and buildings. As technology advances and ambitions grow, a new realm of property ownership is upon us: digital real estate.
For now, digital real estate is somewhat ill-defined, but several companies are beginning to venture into this space, with many more individuals wondering if there are new opportunities to enjoy some passive income with a new kind of property ownership.
What is digital real estate?
Digital real estate refers to what is essentially a virtual world of properties and investment opportunities. Space in this world can be bought, invested in and sold just like in the real world. And just like the real world, that space has value.
Digital real estate (digital estate?) comes with a price based on market fluctuations and perceived value. Digital real estate is an asset, and that asset has worth, though what that worth will be versus what it is right at this moment is hard to tell. If that value increases over time, buying it today could lead to the owner making money down the road. Which means that just like real estate you’re accustomed to, the best time to invest in digital real estate was yesterday!
If the concept of digital real estate is hard to wrap your head around – and it definitely is, so don’t feel bad – consider domain names as a simplistic comparison. Domain names can be thought of as property, where a company or group houses specific information, products or services. Some domains are sought after, and savvy investors have been known to snatch up cheap domain names in the hopes that future companies will come along and buy them up for a hefty pay day.
The metaverse (of madness)
All this is happening in the so-called metaverse. No, not the multiverse, which for some may be easier to understand. It’s also not to be confused with Meta, which is the name of the rebranding effort made by the Facebook Company.
The metaverse is the vast, infinite digital environment that typically involves augmented or virtual reality. People can interact, goods and services can be bought and sold and users can explore the space as they wish; it’s like a mall, but there is no parking involved.
This may be confusing, but there is no one set “Metaverse.” Instead, there may be multiple metaverses, or multi-metaverses that companies are creating to attract interested parties.
For example, Decentraland is one of the most popular; they recently sold a plot of land for a staggering $2.4 million worth of cryptocurrency. Snoop Dogg, meanwhile, dubbed his virtual space the Snoop Verse within The Sandbox; and someone spent roughly $450,000 to be his virtual neighbour.
How do you make money in digital real estate?
Companies operating the metaverse look to make the real estate market hot by creating attractive communities and limiting the amount of space available, even though it is actually unlimited. They’re building hubs or activities, throwing virtual events and getting popular celebrities to join in on the fun.
As you may have guessed, advertising plays a big part, with companies vying to promote their product and services in high-traffic areas. So just like the real world, it’s all about location. If you buy property in a good location, that property may increase in value and could be sold down the road.
What are the risks of digital real estate?
There is no shortage of risks, especially with digital real estate in it’s relative infancy. These metaverses in theory aim to be decentralized, but there are logistical questions that involve decision making and operations. Security breaches and hacks present risk, as well as the longevity and worth of any given metaverse and piece of property both are subject to a lot of fluctuation.
addy and digital real estate
addy focuses on very real and physical properties when it comes to real estate investing. addy invests alongside members in institutional grade commercial real estate, which often come with a price tag of $3 million to $100 million. With addy, the investment is broken down into $1 increments, and crowdfunding allows members to invest a small amount of money to take part ownership in a property that they wouldn’t be able to afford on their own.
So where does addy come into play in the digital world? Well, we recently announced the forthcoming addyverse, a digital arena where you can show off your properties. That’s just the beginning, though,so stay tuned for more exciting developments.
