Buying a plot of virtual for thousands of dollars sounds crazy to outsiders. But in modern economics, value is defined by the Attention Economy.
๐ธ Real world real estate laws still apply in the virtual world.
Land in the center with high player traffic is exponentially more expensive than land in the suburbs.
Why do big brands spend millions buying virtual land? Not to live in, but to place billboards and create brand experiences to reach Gen Z.
๐ธ Besides its potential, the virtual land market also carries extremely high risks, especially for small scale investors.
Virtual Land is an NFT. Unlike fungible Tokens that can be sold in 1 second on an exchange, selling virtual land requires finding a buyer who accepts your price .
When the market crashes, Land liquidity freezes to near zero. You cannot cut losses even if you discount by 90% because there are no buyers.
๐น Virtual Land is currently a game for Whales and Big Brands with long term capital. Retail investors easily get their capital trapped forever in desolate digital wastelands.
Are you buying potential Digital Property, or are you buying an expensive JPEG that no one wants to buy back?
News is for reference, not investment advice. Please read carefully before making a decision.
