Real estate sales in the metaverse surpassed $500M in 2021 and is projected to double in 2022. Despite the hype around the metaverse real estate, all of this comes with risks:
The virtual land that you buy may not become a popular destination in the future.
The price of your metaverse real estate property relies heavily on the price of cryptocurrencies. If the price of whatever coin you use to buy real estate falls dramatically, so the value of the property, making it a highly risky investment.
Skeptics warned that putting your money in these highly speculative investments is a risk people shouldn't take lightly. Simon Powell, Jefferies' Global Head of Thematic Research said, "And say you might buy land in the Metaverse that nobody else buys land and or doesn't want to or even in the worst case scenario, you might buy land in the Metaverse that doesn't exist in the future."
Mark Stapp, Professor at the Arizona State University said, "If it continues the way it's going to be it is most likely going to be a bubble. You're buying something that isn't tied to reality. It doesn't make a lot of sense except it may satisfy somebody's desire
to participate in some gaming activity.
