The important points
- There are currently around 400 million users of Metaverse and Metaverse-like worlds.
- According to Citi, it could reach 5 billion by 2030.
- This means endless possibilities for Metaverse investors who take the long view.
Although the word “metaverse” is about to become a buzzword, it means something, and the more interest in this collection of blockchain-based worlds continues, the more it means too.
There are currently approximately 400 million users of the worlds that make up the metaverse. These users share, create, dream, build and above all buy in this space limited only by the human imagination.
This is one of the reasons for the Metaverse real estate rush. There are so many people in this universe, and companies and brands want to be there too. But what happens tomorrow? $2.4 million for a property at Decentralized Issuance, as Tokens.com did in November, is not a short-term decision, after all.
The future of the metaverse
In many ways, it’s hard to predict what will happen to the Metaverse, as interest in it has only increased since November 2021, when Metaplatforms changed its name and made this obscure corner of the Internet known. However, the interest hasn’t stopped, and companies and users continue to explore new ways to develop Metaverse properties for their own needs, suggesting they want to make a longer-term commitment.
According to a recent report from Citi, the Metaverse will grow to 5 billion users by 2030. That’s a huge house number. Citi predicts this will be an $8 trillion to $13 trillion opportunity, although we don’t yet know which types of properties will be favored and which will provide the best long-term investment growth.
Opportunities abound for investors
The metaverse is a space of untapped potential that is just beginning to unfold in a big way. Although few Metaverse platforms actually offer the possibility of buying virtual real estate, these platforms are growing rapidly. Additionally, interest in land is generally stable: there were approximately 10,000 sales worth $63 million across the 10 Metaverse platforms tracked by NonFungible.com for the 30-day period ending on April 7, 2022.
Some of these lots will certainly go to curious tech fans, but many will end up in the hands of investors and brands looking to enter this strange new world. What will become of them? Everything the owner can imagine. As simple as that.
Prospective Metaverse real estate owners can earn passive income from projects as diverse as billboards and shopping malls, but active income is also possible if you’re looking for a bigger challenge. For example, active investors could buy land and build custom structures for clients, sell those projects when complete, and then pass the profits on to the next client.
The potential for real estate investors in the Metaverse is great right now. Interest in the Metaverse remains fairly stable despite a general volatile investment market. For example, in the first quarter of 2022, there were a total of 5,108 sales to Decentraland, each worth $11,685. Sandbox had more sales this quarter, at 11,971, but for about the same price, at $11,137.85.
In short, there is no shortage of virtual real estate investment opportunities in the years to come. Big brands around the world are working hard to develop Metaverse properties that reflect who they are and how they see the Metaverse evolving, and so can you. The best time to buy Metaverse real estate was October 2021, but the second best time to buy is now.
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This article represents the opinion of the author, which may differ from the “official” endorsement position of a high-end Motley Fool consulting service. Challenging an investment thesis, even one of your own, helps us all think critically about investing and make decisions that help us be smarter, happier, and wealthier.
Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. Citigroup is an advertising partner of The Ascent, a Motley Fool company.
This article was written by Kristi Waterworth and was published on Fool.com on 04/13/2022. It has been translated so that our German readers can join in the discussion. The Motley Fool holds stock and recommends Meta Platforms, Inc.