Republic Realm, a virtual real estate investment firm, just paid $913k for a plot of land in Decentraland’s metaverse.
I repeat: that is nearly a million bucks spent on land that you cannot touch, its literally on the internet in digital form.
For those who don’t know, Decentraland is a virtual world where you can own land, build anything on it and everyone walks around in amazing avatars, all bought and traded with the game’s token — Mana.
Think Ready Player One but for it is for real, not a movie.
So what’s the deal with buying virtual land?
That is where the creators are brilliant. The introduced scarcity into the equation and limit the amount of land that can ever be traded. As the game’s popularity rises, more users and finite amount of land means location and prices of land will only go up.
That is why investors and speculators are rushing to gobble up prime estates in Decentraland.
The land can be used to display NFT arts, host concerts, casinos and any number of ways to earn Mana from other players which in turn earns you cash when you exchange it out from the system.
What a smart way to create an economy from nothing.
If you learnt nothing, learn that scarcity is the key to any ecosystem.
Scarcity is the prime reason why Bitcoin, diamonds, gold and any precious commodity (including human talents) are so expensive, and naturally worth investing and therefore worth speculating on.
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