The Risks of Investing in Virtual Real Estate
- The future of the metaverse is still uncertain.
- There’s no way to know which metaverse platforms will stand the test of time.
- Digital land can be infinitely replicated. And yet scarcity of land is what gives it value. So virtual land is vulnerable to a high level of volatility.
- When you buy virtual real estate, you’re also buying something that’s not tied to reality. People just don’t need virtual property the same way they need physical property.
- Metaverse platforms rely heavily on blockchain technology. Most use cryptocurrencies for processing real estate transactions, which are highly vola
tile in and of themselves.
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