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

[Zoomic]

The responses under this thread are actually talking about different things. Is the Op talking about tokenized real estate or virtual land in a metaverse? They aren't not necessarily the same market, we need to clearly understand that part.

Let me assume you're talking about one buying a peice of land of related property inside a virtual platform, how does the value of the land increase, is it the location, traffic, businesses around it or scarcity within the platform?

Again, what happens if the platform becomes unpopular and less patronized, would it not affect the value of the lands?

[savetheFORUM]

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.

If we only focus on the title, it is seems that he was referring to Metaverse but after reading the subject too, it may also mean tokenized Real Estate. In the crypto world, we already have tokenized precious metals such as tokenized gold and tokenized silver, or also known as RWA. Maybe this tokenized Real Estate is not far from that? RWA's are getting established here in crypto. That only means they are actually working or there are also legit projects apart from the scam one. When it comes to how this tokenized Real Estate works, it was like we are only having a share of the pie if we are investing on a Real Estate that already has an active owner/s.

[Ruttoshi]

I will prefer to invest in physical real estate if I have the money. Virtual real estate hype is gone and I wouldn't advice anyone to do the same. Investing in bitcoin is better than RWA to me because they're centralized and you know the risk involved. It's better that you make your own research and have a proper knowledge of virtual real estate and its performance in the market before jumping into it.

[Asiska02]

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?

Just because you own a virtual asset doesn’t mean that it has an economic value attached to it. I see this as a very high risk investment but don’t still dispute that fact that many people made good returns from it in 2020-2022 metaverse boom. Today considering going into that will have to depend on the liquidity, if there is low liquidity, then it will be very hard to get a good buyer at a fair price you want to sell it for. The platform itself is a major risk to consider. Being tied to crypto which is volatile can also affect the price. Then lastly, regulations can also be a key determinant to look into before venturing into virtual real estate.

[jossiel]

I will prefer to invest in physical real estate if I have the money. Virtual real estate hype is gone and I wouldn't advice anyone to do the same. Investing in bitcoin is better than RWA to me because they're centralized and you know the risk involved. It's better that you make your own research and have a proper knowledge of virtual real estate and its performance in the market before jumping into it.

If I've got a lot of money, I'll also choose the physical ones.

There's more assurance in the physical real estate and if I'll be investing in it and at the same time price, no brainer of choosing the better option.

I can live in it rent free or I'll have it rented. While there's nothing wrong for investors who prefer to get into these virtual real estates if that's ideal for it.

But, as it goes online the project and developers you'll need to look at them and research if they're trustworthy or not because they can fly and gone overnight.

[Moreno233]

I have invested in a lot of projects in this area but I have not been lucky to make any profit from any of those investment. The idea usually look great and feasible but the implementation is where the problem is. I wouldn't recommend this to anyone based on my experience and because there are better alternative investment options. Like most people have said, I will rather invest in physical real estate instead of handing my money over to faceless individuals that will give me worthless token or NFTs.

[yhiaali3]

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.

Yes, this is a good example that shows that scarcity does not necessarily play a major role in determining the price unless there is actual use and need.

There are many rare things that have no value because people do not need them or perhaps because they have no intrinsic value, and therefore even if these virtual properties are rare, they will have no value as long as there is no demand.

[bricky2ndlife]

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

Bitcoin Cash is "scarce" but its price is very lower than Bitcoin price, because B Cash has lower value than Bitcoin has.

This one is even much more "scarce" than Bitcoin, the YFI token has only 36.64k in total supply but let's see its price.

Scarcity does not create value and decide value.

[Dareo]

Yes, there are real examples, especially in Decentraland and The Sandbox. In 2021, a Decentraland LAND was bought for around $17,141 and sold for $18,265 a few days later. An even bigger example is a LAND in The Sandbox, which was bought for around $175 and later sold for $18,244.

But I need to know what exactly you mean by virtual copy of real world property. If you're referring to land in the metaverse or game, we can tell you that land prices have dropped over 90% in today's market and liquidity is extremely low. However, RWA or real asset tokenization is a growing trend in which shares of real assets can be purchased via the blockchain. This is much more realistic. So before pouring money into the illiquid market based on the word of mouth stories, you should make sure that the project is indeed a metaverse game or an actual RWA.

[Wind_FURY]

Yes, there are real examples, especially in Decentraland and The Sandbox. In 2021, a Decentraland LAND was bought for around $17,141 and sold for $18,265 a few days later. An even bigger example is a LAND in The Sandbox, which was bought for around $175 and later sold for $18,244.

OK, those are good examples, BUT in the context that I have proposed that Bitcoin is also a sort of "virtual real estate" - because it gives you the means to own a part of the network, would you actually want to HODL those "assets" in the Decentraland and Sandbox networks, OR would you rather HODL Bitcoin?

It's a debate for another topic, but a question to always keep in mind, no?

[sergiorus]

Yes, there are real examples, especially in Decentraland and The Sandbox. In 2021, a Decentraland LAND was bought for around $17,141 and sold for $18,265 a few days later. An even bigger example is a LAND in The Sandbox, which was bought for around $175 and later sold for $18,244.

Anything from 2021 is a bad example. Back then you could make tons of money overnight on any useless stuff: JPEGs, memecoins, even whitelists for mints and sales were being sold OTC.

99% of that stuff had 0 fundamental value, it was just pure mania.

[YOSHIE]

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

In my view, the risk of trading and making money from virtual real estate is very risky. You could say that the reality of the digital property market is very speculative, not the same as when we trade in the real world in general.

The reasons for the risks behind digital property trading activities, one of which is regarding regulations, there is no legal protection if negative things happen, the crypto assets that you own and store for trading could experience significant changes in value/drop drastically and couldloss of capital in a relatively short time, very different in the real world, there are many other risks that might occur in digital property business/trading, you can't just look at the big profits, you have to look at the effects of the performance of digital markets and cryptocurrencies.

[joniboini]

very different in the real world, there are many other risks that might occur in digital property business/trading, you can't just look at the big profits, you have to look at the effects of the performance of digital markets and cryptocurrencies.

I have a similar experience, though it's not exactly a tokenized virtual real estate. Basically there's this app where people can crowdfund a business when they wanted to expand into a new area. Supporters will get shares, get monthly profit, and so on. Pretty much similar to how tokenized stuff market themselves. Long story short, one of the business goes under and everyone failed to get their money back. It takes a long time for the marketplace to process the complaints and police can't even intervene due to uncertainty in regulations.

Unless things have changed, I can only imagine doing this virtual stuff will end up to be the same.

[batang_bitcoin]

Yes, there are real examples, especially in Decentraland and The Sandbox. In 2021, a Decentraland LAND was bought for around $17,141 and sold for $18,265 a few days later. An even bigger example is a LAND in The Sandbox, which was bought for around $175 and later sold for $18,244.

But I need to know what exactly you mean by virtual copy of real world property. If you're referring to land in the metaverse or game, we can tell you that land prices have dropped over 90% in today's market and liquidity is extremely low. However, RWA or real asset tokenization is a growing trend in which shares of real assets can be purchased via the blockchain. This is much more realistic. So before pouring money into the illiquid market based on the word of mouth stories, you should make sure that the project is indeed a metaverse game or an actual RWA.

I was thinking about decentraland and has been impressed with it. But I didn't put money in it because many of these projects at that time was truly hyped. I have no idea of how it is going right now but I think those who's got experience to profit from virtual real estate and projects like this will continue to look for opportunities just as this. Tangible asset if related to real estate is much better choice IMO but it just getting more expensive.

[nelson4lov]

There have been a lot of them over the years. In fact, one 2-4 years ago on Solana really seemed like it would take off, but it failed like the rest. Virtual real estate projects only look good on their wallpapers. In practice, they all fail to build a fully functioning, blockchain-based digital real estate platform.

It's a cool idea, but I think it's hard to pull off.

[Wind_FURY]

There have been a lot of them over the years. In fact, one 2-4 years ago on Solana really seemed like it would take off, but it failed like the rest. Virtual real estate projects only look good on their wallpapers. In practice, they all fail to build a fully functioning, blockchain-based digital real estate platform.

It's a cool idea, but I think it's hard to pull off.

Because sustainability is the problem when everyone goes into prospecting in "virtual real-estate" with the idea that they are going to play hot potato with the other prospectors who also have the same idea that they are also going to play the game of hot potato.

    !