Can lands still be rare in Metaverse?
Metaverse is one of the biggest innovations exploding in the crypto industry right now, showing just how advanced technology we are getting. Thanks to blockchain technology that helped all of this come true. However, in the metaverse worlds, many enthusiasts wonder if the lands will ever become scarce. We can already see how expensive land is sold in these virtual realms.
In the real world, many crypto and nft projects are skyrocketing due to their fear and unique nature. But in the metaverse, developers can introduce so many terrestrial NFTs, so why are people still optimistic?
What makes land valuable in the Metaverse?
Metaverses will face the difficulty of people proliferation. There are dozens of metaverse coins spinning right now, and as faith Tushar of Multicoin Capital recently said, they will all sell “land”.
However, the issues raised by Nir et al. the last few days are much more basic and should signal flaws within the model despite the competitive landscape. More than anything, the idea that geographic homes in a virtual world will rise in value the same way lands in the real world seem to miss some really basic distinctions.
In the simplest terms, actual land values support location and utility. A bit of land in the real world is effective depending on how long it takes to get to the various places you want to go, which is why land in the capital of Japan and New York are some of the most valuable in the world. world: they’re on the edge of cool stuff. This geographic reality is inseparable from the real-world land mismatch since each piece of land has a completely separate geographic location from the other piece of land.
There is no intrinsic reason for a piece of virtual land to be more valuable based on its location, any greater than an online address is effective because it is “closer” of another. in a virtual world, you will simply transport your avatar to any place instantly. As another Twitter user observed, this implies that supporting metaverse land values would require placing entirely artificial restrictions on users, which would worsen the experience and ultimately deter users who are the source. $64,000 worth of a metaverse.
Then there is the second value of land in the real world, its reasonable utility. in the real world, this can include things like whether or not it is soil or suitable water sources for agriculture or other natural resources. But then again, there’s no such thing as a “natural resource” in a metaverse, so creating a virtual earth trail of the $64,000 thing’s value structure would involve attaching some rights to it.
We tend to describe the entire metaverse land investment plan as a kind of “financial skeuomorphism.” Skeuomorphism refers to the tendency to style digital goods in such a way as to mimic the physical world, and was a very hot topic in interface styling throughout the early development of the iPhone.
Over time, visual skeuomorphism in interface design has faded as people become more accustomed to the variations between digital and physical objects. an equivalent may very well be happening with the metaverses, with the fact that a group of people just invested $285 million, not in Yuga Labs stock, but in the monetary equivalent of an app icon in shadow.
And while Apple was poised to gradually move away from skeuomorphism, the metaverse fits their land valuations that may have gobbled up shark repellent that they can only squirt directly in their investors’ faces. To maintain land value, developers might have to impose artificial limitations that harm the user experience and possibly the particular value of the system.
Conversely, creating a metaverse that’s easier to maneuver or produce interval content would almost inherently hurt land values.