The real world’s housing market is out of control, while the metaverse is still uncharted territory with plenty of room for everyone. In actuality, virtual real estate is almost limitless, according to Winston Robson, CEO of virtual real estate valuation firm WeMeta.
How did Winston Robson get into virtual property and the Metaverse?
He was participating in many hackathons in the blockchain and Web3 fields, wanting to launch a business, and had recently left his job. He tested many concepts and recalls attempting a variety of things, including chained mortgages and chained Airbnb. Then, at Web 3 Weekend at ETH Global in May of last year, Robson met someone who was discussing creating something for the Metaverse. That’s when he first learned about it. He entered Decentraland for the first time at that point, after which he entered Crypto Voxels. The thought that these entities had separate land, that it was genuinely valuable, and that people would construct on it simply amazed him. It made him think of Roblox and other games he used to play where you owned a place that people could come to. He was attempting to launch a firm, and he had experience in data science and real estate, and there was this potential that, you know, people were talking about and really appreciated, but that nobody really understood. He entered and examined the data, recognized its significance, and that is how he got involved.
Why is the value of virtual real estate such a challenging notion for investors to evaluate?
Many individuals find it difficult to understand this idea since the Metaverse is still a tough idea to grasp. Because of this, it is more difficult to understand and assign a value to a virtual property. But it’s crucial to keep in mind that the value of these assets comes not from their physical attributes but rather from the fact that people continue to visit them online. The Metaverse is stepping in to fill the hole left by the pandemic, killing off many people’s third locations, and this, by definition, adds value.
What are some of the biggest distinctions between traditional and virtual real estate? What impact do these variations have on their values?
The distinctions are still up in the air; they can be as similar or as different as the user desires. What is the value of the virtual real estate that is your Facebook page? To be honest, quite high. Privateness is one feature that virtual real estate is missing. In the virtual world, being alone is almost impossible. The notion of privacy is essentially nonexistent because even your own phone is tracked.
Another point of distinction is the accessibility of virtual real estate from any physical location. In conclusion, the consumer is concerned about their valuation. The potential to make money, though, is the main consideration. Real estate in the physical world is static, while virtual real estate has the potential for unlimited expansion since it is intrinsically infinite.
What are the crucial elements to think about when it comes to digital land? How does WeMeta determine a property’s worth using these factors?
At the moment, the evaluation of digital land is mostly focused on location. The limitations of construction truly depend on location, just like the limitations of developing tangible real estate do. But location is only one factor in the prospective value. WeMeta intends to shift its attention in the near future from only the location of digital assets in their separate metaverses to the amenities that they may offer. In the future, the goal is to rely less on the past sales of surrounding houses and more on comparable experiences.
Where does Winston Robson see digital real estate going in the future?
Robson says that you are the owner of your possessions, which are not members of a larger group. The issue presently is that everything is powered by AWS. However, this may change in the future and allow for total decentralization. In his opinion, the future of digital real estate is quite exciting. He compared it to a game with a map that can be improved upon, like GTA or Roblox. Unfortunately, no tech stack presently supports this. According to Robson, Ethic is doing a wonderful job with their Unreal engine, but since it’s not native to Web3, you’ll have to wait and see how it performs.
What guidance would Winston Robson provide to folks who want to invest in the Metaverse but are unsure of where to begin?
He would start by finding out how someone defines investing in the metaverse because, in certain ways, purchasing shares in any business that owns virtual property may be viewed as such. On the other hand, creating experiences in these distributed settings is a terrific place to begin. The greatest approach to getting ready for the metaverse’s future is to learn how to develop Web3 native technologies.