The value proposition of virtual lands works the same way as the real world. High value properties are often close to shops and activities, where people will pay higher rent to live.
Of course, the value of virtual lands only increases if areas grow and people get involved in the metaverse. This prospect is why there are many skeptics of such an investment. The millions of dollars of investments in virtual lands are all a risk, but it’s not without merit.
After all, celebrities and stars buy virtual land for all sorts of reasons. Some celebrities, like Snoop Dogg, are buying land to get ahead of the trend or because they think it’s fun. Others, like the Winklevoss Twins, invest in land for educational purposes — to create exhibits that teach others about cryptography and the Metaverse as a whole.
From there, fans have the option to purchase metaverse properties alongside their favorite stars and will pay top dollar to do so. People interested in virtual real estate investing are betting on the possibility that their land will become more valuable over time, hence their optimism towards virtual land as a whole. If you’re wondering why some think the metaverse is the greatest investment opportunity, land value appreciation is one of them.
In fact, in some areas such as PolkaCity, owners earn passive income through annual interest rates. Unfortunately, for some, passive income is not present in all metaverse projects, and it is always a risk to invest in an asset expecting profits later. This variety of income methods is all the more reason to do thorough research before investing.