What Can You Actually Do With LAND?
- Land in the digital world is expected to have similar intrinsic values as in the physical world.
- Blockchain ecosystem interoperability can unlock the full potential of the digital economy.
- A network effect exerted by digital immersion will generate higher LAND demand.
As humans, we’ve always been drawn by sci-fi and the dream of a digital utopia. The metaverse is our next digital frontier. Fostered by mass exposure of blockchain byproducts including NFTs, the probability of becoming digitally interlinked increases. Moreover, as humanity turns digital, new economies that mirror the physical world are shaping, including the real estate sector. Thus, LAND is becoming a sought-after digital product in anticipation of the new digital migration.
Is There Enough LAND For Everyone?
In modern society, land has transformed into an exchangeable commodity whose value, according to Willy Verheye, is associated with future financial opportunities. Like traditional economic standards, digital land can foster similar opportunities; however, an actual scene for digital LAND to set the standard is not yet established.
Decentralized ecosystems like The Sandbox, Decentraland, or CryptoVoxels build a metaverse where the network value resides in the LAND. According to a Reuters article, the more people enter a metaverse, the more value a plot or LAND will have. So while land prices are based on accessibility and premium locations that facilitate several hedonistic upsets in the real world, LAND’s value in the metaverse is linked to the number of users – or website traffic.
Granted, NFTs and the value they add through enforcing ownership generated more recognition of how digital assets can converge to express value. For example, one Twitter user mentioned that a parcel of LAND in Decentraland had been gifted as a wedding gift in China. Yet, the value LAND holds in the eyes of the beholder is purposeful only if we as a society agree to converge with the metaverse.
On The Flipside
- Decentraland released a proposal where a DAO can “invalidate the immutability” of a plot or LAND.
- LAND will not become a commodity unless it operates in a completely decentralized ecosystem.
- Interoperability hinders the exponential growth of the digital sector as investors purchase LAND for speculative purposes.
What Can Be Done With Land?
LAND is more than just a speculative asset; it’s becoming a commodity. In an email to DailyCoin, Dan Mason, President of First Mason Financial, told us he invested/purchased LAND due to its scarcity factor. Moreover, he told us that LAND in the metaverse is “one of a kind,” and the opportunities for owners are similar to property ownership in the physical world.
"The LAND can be developed or built on, or the land owner can just hold for scarcity value which should increase the value over time as supply is reduced and demand increases. The owner can also mortgage LAND, rent LAND to a 3rd party to use and collect the rental income."
Dan or Virtual Dan in the metaverse, emphasized companies are starting to identify new digital opportunities, similar to what his investment firm is already doing by “purchasing their spot in the metaverse.” What’s more, is that location determines the price of a LAND in the metaverse
"Also, just like in the real real-estate world: location, location, location is most important. Who your neighbors are and locations of major landmarks will create higher and lower prices based on the location on the meta-verse."
He added,
"Another is going to be from the innovations LAND owners or lessees develop on the LAND plots. The more it builds up, there's a network effect that creates additional value to the platform."
Projects such as second life already proved humanity’s desire to mediate their interaction. Our psychological needs determine the motives of our immersion into virtual worlds, yet Dan emphasizes that the growth of the metaverse is defined by mainstream adoption.
"I believe the public will increase the foot traffic on the Meta-verse, which will feed the desires for companies to own and develop their own unique place in this new world."
He continued, stating,
"The Meta-Verse can be a giant worldwide shopping mall, entertainment center, and a digital playground all in one place."
To that end, human need and interlinkage with the virtual world will boost the price of LAND and the adoption of a digital real estate market because businesses grow where consumers are located. Facebook is a case study of how consumers formed a usability habit after the application mirrored their daily brand and lifestyle associations. In that regard, LAND can have a similar effect on our digital lives.
Why You Should Care?
LAND and other digital assets are continuing to become an exciting investment opportunity. Because we are in an unregulated market, prices can jump based on supply and demand. As long as there is no use case at a global level, investment risks should be taken into account.
Read more: https://dailycoin.com/what-can-you-actually-do-with-land/
Text source: DailyCoin.com
