According to billionaire investor Mark Cuban, buying digital land in the metaverse may not be the best use of your money.
Cubans are known to be crypto enthusiasts, but in a recent interview on the Altcoin Daily YouTube channel, they called buying virtual real estate on the Metaverse “the most ridiculous thing ever.” .
Despite being an investor in Yuga Labs, which owns a collection of popular NFTs such as the Bored Ape Yacht Club, which has sold digital land parcels, Cuban said buying virtual real estate is “ridiculous.” rice field.
“It was big money for them, but it wasn’t based on utility,” he said.
In the physical world, real estate is valuable because land is a scarce resource. However, that rarity doesn’t necessarily apply to the metaverse.
In these virtual worlds, “the volume you can create is unlimited,” Cuban said in an interview.
The rise and fall of digital real estate
Last year, the Metaverse platform experienced a virtual land rush, with users spending millions on digital real estate. According to MetaMetric Solutions, in 2021 he will reach his $501 million in combined sales across four major platforms.
In some cases, virtual real estate was worth as much as a physical home. Republic Realm, an investment firm that owns and develops virtual real estate, has invested his massive $4.3 million in digital assets inside The Sandbox, one of his largest metaverse platforms, according to The Wall Street Journal. I did.
A virtual plot next to Snoop Dogg’s digital mansion inside The Sandbox was purchased for $450,000 in 2021 by an NFT collector named “P-Ape”.
However, the virtual housing bubble may have burst.
According to WeMeta, as of August 7, the average selling price of crypto assets on the metaverse platform Decentraland was $14,385.27. That’s down about 61% from its November 2021 peak average selling price of $37,238.68, according to the site.
Given the unpredictable nature of the metaverse and cryptocurrencies, financial advisors recommend investing only the amount you can afford to lose. There is no guarantee that you will profit from your investment.
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