We have been accustomed throughout history to buying tangible things, to the point where we now find it obsolete to spend hard cash on virtual goods and properties. It might seem like a scam for some at first, but in fact, it is the absolute opposite. It is quite normal to be skeptical with little information about this relatively new concept; however, by the end of this read, you will have a clear image of why investing virtually is the future, and how you could actually benefit from it. In this article, we will look into the relationship between real money and virtual things in NFTs, as well as the fashion and real estate industries.
In case you are not very familiar or have questions about NFTs, these are non-fungible tokens that are unique and cannot be replaced. They can be any type of digital or conceptual content – photographs, videos, pixels, music, or even experiences and abstract concepts – that is the sole property of the owner and possible buyer. So why are people purchasing digital arts from anywhere between hundreds and millions of dollars? The answer is simply due to several factors such as the increased price of Bitcoin, the pandemic, and a recent distrust in the US currency.
Think of it as creating an art form, but instead of profiting by selling it physically, you are doing so virtually. In the real world, it has become very easy to copy and use this work by a number of people. With NFTs, you are earning and trading these items in a way more modern, secure, and beneficial way.
By investing in NFT technology, brands are opening up new ways to incorporate profitable possibilities into their digital marketing efforts. They are using them to stretch traditional advertising limits and interact with their audiences with the purpose of cashing in on revenue sources.
While many people find the concept of spending real money on clothes that do not exist difficult to understand, virtual items create genuine sales in the “Metaverse” – online spaces where individuals may assemble, move about, meet friends, and play games. Clothing for avatars, known as “wearables,” can be bought and sold on the blockchain in the form of a crypto asset.
For people in the Metaverse, virtual clothes are one way of expressing the identity of their avatar and how they would like to be perceived. This phenomenon has gained increased popularity, especially during the covid-19 pandemic, in times when people spent most of their time online. As for big brands that incorporate the virtual realm in their marketing strategies, they were able to generate millions of dollars by selling such items. For instance, major fashion brands – Dolce & Gabbana, Tommy Hilfiger, Etro, Fred Segal, Cavalli, and others – who participated in the first-ever Metaverse Fashion Week were able to collect $75,757 worth of 7,065 wearables according to representatives.
While buying real properties in the physical world might seem like a smart investment, is doing so in the virtual realm worth it? Virtual lands in the Metaverse are intangible spaces that houses, parks, or shopping centers can be built on. They are sold in parcels, just like actual land, and are purchased using cryptocurrencies. The two key elements impacting the value of virtual land are location and scarcity. For example, a virtual land in regions where people in the Metaverse densely assemble will naturally have a greater value than ones with here fewer events taking place.
Having said that, it is fair to mention that purchasing parcels might be the contemporary strategy for making money. Owning spaces in the Metaverse means you have the green light to exploit them in whatever way you choose to. You can throw exclusive parties – take the Fashion Week example – then charge people for entrance. If parties are not your thing, another option might be building a new business. You would be surprised to know how many avatars are actually interested in spending time at a virtual bar, restaurants, activities, or even galleries.
Another reason to buy properties in the Metaverse is for investment purposes. To date, lands can reach a value of around $4.3 million. Investment is another typical cause. Lands have sold for as much as $4.3 million thus far and more is yet to come. In this case, investors are buying virtual territory and waiting for it to increase in value. Alternatively, they can upgrade an already-existing property by revamping its design and usability before selling it at a greater price.