How realistic is it to make money with virtual real estate?

[maximum_hgu]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

[Gozie51]

My question about this Blockchain virtual land is how would the land start to appreciate. Even though this is a hypothetical question but then I read from here and very instructive that:

Virtual real estate behaves a lot like physical real estate: scarcity, location, and demand matter. But unlike physical real estate, virtual land requires near-zero maintenance, has no physical boundaries, and is globally accessible.

I read both physical land and virtual land behave same way. In physical land investment, access to road and other amenities like structures/buildings around, hospitals, hostel and other government facilities are important for financial value appreciation. So how would virtual land appreciate.

[sergiorus]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

Everything that is tradeable can be bought and sold for profit, literally everything. As long as there is a counterparty.

Assuming the market is liquid enough and always has a counterparty, in order to make profit you have to have some edge over them. Be first, be smarter or cheat (a quote from ''Margin Call'' actually).

In trading of financial assets there are no shortage of counterparties, the markets are liquid and very active. Simply having clear mind (no FOMO) and technical analysis skill already gives you edge over many emotional market participants who FOMO in, chase pumps and have poor risk management.

So regarding your question, what is your edge in that market? Think about it, if you don't think you have one, you better abandon this idea.

[BitMaxz]

I read both physical land and virtual land behave same way. In physical land investment, access to road and other amenities like structures/buildings around, hospitals, hostel and other government facilities are important for financial value appreciation. So how would virtual land appreciate.

I think you don't actually know what exactly he talks about.

He was talking about the land in the blockchain where you already link above or even on some games out there that sell land, holding them gives you some benefits, earnings, or something, or can offer a rent on your land to earn some tokens/coins.

It's not totally similar to physical land, where you can earn in some games by just holding that land and offers like renting.

[TastyChillySauce00]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

You mean tokenized real estate? or virtual land on metaverse? I've never seen any of tokenized real estate that actually works and right of token ownership is actually equal title of the land.
Almost all of them are shady but it'd be great if you can mention what platform you're exactly talking about because I have nothing in mind regarding virtual copy of real-world properties beside several failed projects of the past.

If it's a land in metaverse, everybody is losing money after metaverse hype is fading, if it's really a vritual copy of real world properties, honestly I have no idea how would that works.

[RGBTC]

Almost all of them are shady

There is no virtual copy that truly replicates the scarcity of real-world property; I am not convinced that tokenized property certificates would be legally valid. I didn't buy into the NFT trend either. I simply viewed it as another way for "whales" to launder money.

It is worth noting that real-world "properties" and "assets" are not the same when it comes to scarcity.

[Rruchi man]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

There are people who are good at anticipating opportunities and being proactive about taking advantage of this opportunity once recognized.

This is perhaps the case of people who are investing in virtual real estate now by buying properties and holding to sell later when the opportunity in this sector is recognized and more people become interested.

You may not see the opportunity, but they do based on their understanding. If you don't understand it, try to before making any form of investment there.

[Wind_FURY]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

There could be a market for that, BUT Bitcoin taken in another context, Bitcoin does bear a resemblance to a sort of "virtual estate". Plus it has a bigger market than those virtual property gimmicks.

Plus the assets - your Bitcoin - in the network are held by YOU, not by a centralized third party like those virtual real estate properties that are stored in a centralized database.

[yhiaali3]

The first question that comes to mind is, what is the benefit of these virtual properties?
What drives people to demand any product is the extent of the need for the product; therefore, if there is no need for the product, there will be no high demand, and therefore the price will not rise.

Perhaps scarcity here plays some role in increasing the demand for these lands and thus their value may rise over time, although I don't think so because they were widespread for a while and made some noise, then I didn't hear much about them anymore.

[Alphakilo]

The first question that comes to mind is, what is the benefit of these virtual properties?
What drives people to demand any product is the extent of the need for the product; therefore, if there is no need for the product, there will be no high demand, and therefore the price will not rise.

Perhaps scarcity here plays some role in increasing the demand for these lands and thus their value may rise over time, although I don't think so because they were widespread for a while and made some noise, then I didn't hear much about them anymore.

Just like NFTs, these also faded with the hype and noise after some made profits while others still have their funds buried in there.
To be sincere I also think virtual land is also a kind of NFT and your profit depends on if there's an actual buyer for your price.
In economics, scarcity isn't the only recommendation for true value unless there are real buyers and this is just the case with virtual real estates where the hype has died down and what's left is an empty market with major investors having made early profits and moved onto other notable and more recent projects.

[boyptc]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

It's either some metaverse project or some RWA projects. What specific project you're talking about this?

While that is another interesting investment to put money with, you better sure that they're not driven by hype.

And if I am going to invest related to real estate, I won't do it with any crypto projects out there. I'd look for some REITs available in my country than any of those.

[TastyChillySauce00]

Almost all of them are shady

There is no virtual copy that truly replicates the scarcity of real-world property; I am not convinced that tokenized property certificates would be legally valid. I didn't buy into the NFT trend either. I simply viewed it as another way for "whales" to launder money.

It is worth noting that real-world "properties" and "assets" are not the same when it comes to scarcity.

Yep, the thing with tokenized property certificate is that, the legal title usually belong to company that issued the token, so the token ownership don't really have direct deed of the property. The token owner will then be considered to own fractional share in a legal entity, but if you're not careful there might be legal loophole. The scheme feels like a sham and I also am not convinced the token would be legally binding or even valid.

Just another scheme for those company to raise money from public to buy property for themselves while saying they're doing this on behalf of the users.

[Wind_FURY]

The first question that comes to mind is, what is the benefit of these virtual properties?

Nothing, but for mere entertainment and maybe make some money.

What drives people to demand any product is the extent of the need for the product; therefore, if there is no need for the product, there will be no high demand, and therefore the price will not rise.

Although true, but the Greater Fool Theory also applies in the markets of the "virtual real estate".

 

Perhaps scarcity here plays some role in increasing the demand for these lands and thus their value may rise over time, although I don't think so because they were widespread for a while and made some noise, then I didn't hear much about them anymore.

I believe not. Bitcoin Cash is also "scarce", but that shitcoin's market value is not as high as Bitcoin.

    ¯\_(ツ)_/¯

[Peanutswar]

I used to experience this kind of virtual land before in NFT which is tons of games offers a land with a perk of course but apparently, I ended up just flipping for a short period of time because I know there are a lot more people interested of buying that virtual lands for their flex and hype to the game of course it's an opportunity to make small money.

Well back on the track is for me its more ideal to buy a real than a virtual real estate because at the first place is its virtual you can only seen online compared with the physical land you can see in your eyes, you can touch and you can use as a shelter.

Wait I guess this is not the appropriate topic for trading.

[slaman29]

Well since you are already finding them online why not look at the past 10 years of crypto projects selling VR realestate? I didn't look but I can almost guarantee none made money. Or rather, the owners made money and the buyers did not.

I remember even people selling ad space in VR in Paris London etc. Who were looking at those ads? Us guys who paid for it

It is trading, in a way, because the P2P marketplaces were selling and you had flippers but really there was such low interest in them.

[Wind_FURY]

I used to experience this kind of virtual land before in NFT which is tons of games offers a land with a perk of course but apparently, I ended up just flipping for a short period of time because I know there are a lot more people interested of buying that virtual lands for their flex and hype to the game of course it's an opportunity to make small money.

That indicates no conviction, no? Because why? You know that there actually has no value in them.

Well back on the track is for me its more ideal to buy a real than a virtual real estate because at the first place is its virtual you can only seen online compared with the physical land you can see in your eyes, you can touch and you can use as a shelter.

Wait I guess this is not the appropriate topic for trading.

Although, Bitcoin is also some sort of "virtual real estate", but many people are willing to HODL it rather than "flipping" it even if it's something "merely virtual".

 ¯\_(ツ)_/¯

The differences might merely be a matter of perspective, no?

[Hamza2424]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

Bro, this reminded me of the metaverse narrative. At that time, this was a common question, and everyone was like, what if there is no demand, because the value of such properties, assets only existed due to demand, like the value of BTC exists.

But if there is no demand, nothing, then no one bids for it. Even platforms advertised that once we start getting millions of players, they will like to spend their time here because they can't go out due to Covid. Then anyone can sell their place for advertisement too, whoever likes to pay for your land if people around your land are actively coming for some purpose.

Means demand. Anyway, why does it matter to you? Don't tell me you are buying it, because buying land on the moon is a way better idea than this haha.

[Jostle]

For anything to appreciate, you will need a "counter-party" (someone mentioned it), aka some demand for it. In addition, the uptake of it is also due to the "network effect" --> how it will become a self-sustaining demand, simply because everyone is doing it.

There are many of these "virtual property games", some could be in the hype now, but like many others before them, it will eventually just die down.

[bhadz]

Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

I remember Axie Infinity on this, they have land for sale as NFT and they have value. Everyone was hyped back then and the price were too expensive and considered it as a good investment. Learning from that, I won't take things that are into the virtual things anymore except for notable crypto, bitcoin and some altcoins because those virtual lands still have value but they're not the same as good as before. But for anything that's been made new and making it as something as good as these reputable cryptos. I don't think that I'll invest on it. But if you have found one and you're profitable in it, then that means you're exceptional and you should know that for each entry, there must be an exit for it.

[CryptopreneurBrainboss]

Recently I found several platforms where you can buy a virtual copy of real-world properties. Many of the properties are already taken. I’m curious about the actual market, not just the hype. Are there good examples of people buying and later selling virtual real estate for crypto at a significant profit?

It was a trend few years back but don't think, that trend is having much attractions anymore. There was a time it was the biggest thing in the space but just like other trends, it's time has passed. I don't encourage you doing that as we haven't finished with the physical real estate for the virtual ones to be a big deal. It might pick up momentum again in the future if the market picks up momentum again but rhings aren't looking good as companies like Meta that was frontrunner are backing out and AI is becoming the new trend. Don't know if it's just a fantasy for you or something you really want to do to make money, I don't think it'll be a wise decision to pursue something like this instead invest that money into flipping of coins if you're that interested in flipping something.