THE METAVERSE ADVANTAGE (LEVEL 2):
This is a new era. In a world driven by global uncertainties, the metaverse emerges as a virtual sanctuary. The tremendous rise of this Web 3.0 technology has created new opportunities for virtual real estate investing. Tech-savvy investors are seeing the potential for capital appreciation, artistic expression, and social participation in the booming metaverse property market. Virtual real estate platforms such as Decentraland, Cryptovoxels, The Sandbox, and Somnium Space (the Big Four) provide investors with a variety of ways to participate in this expanding sector.
The same way Web1 allow us to have our own email, and Web2 allow us to have our social media profile as our home bases, in the Web3 era, personal property in the form of virtual real estate will be what everyone will fight for to preserve. Creators can monetize their content shown at their virtual property by charging for access or trading their digital creations. Brands can use their immersive properties to advertise services, organize virtual product launches, and provide unique customer experiences. Just like right now we would freak out if our email account is no longer available or if our IG profile has been restricted or banned (and the implications that this action has for many in their real life), the time will come when your avatar and your virtual home/business/complex will entail so much that people will do anything to preserve, improve and safeguard those digital assets at any necessary cost… but as always, the early birds are the ones eating the warm. This is why the sooner the better, but we shall assess and take an informed decision, so we do not find ourselves, in the middle of nowhere in the vast digital universe waiting for someone to knock our door so our property investment stops losing its value.
Investing in virtual real estate and digital art within the metaverse does offer unique advantages, and they have the potential to become currency-neutral valuable assets. Here are some key benefits of what we have labeled as “level 2 assets”:
A. Global Market Access: Virtual real estate and digital art in the metaverse are not bound by geographical limitations, allowing investors to reach a global audience and market. Unlike art investing, you don't have to travel all over the planet in search of the unique piece. From the comfort of your home, via the metaverse, you can access and visualize art pieces from all around the world. And not only that, virtual real estate and digital art assets offer lower overhead and maintenance costs.
B. High Liquidity: Digital assets can often be sold more quickly than physical assets, providing higher liquidity. This is facilitated by the various online platforms that support the buying and selling of these assets. Have you ever experienced the troubles and impediments banks and other institution lie on your way when you decide to withdraw your investment? And what about a crowdfunding campaign, when after a period of time, you are expecting your returns, but dividends take longer than you can wait so you decide to step out, but you cannot exchange your stake with another person that is willing to continue the investment? Web 3.0 technology is here to come to your rescue. Those will no longer be excuses for you to navigate at liberty and manage your investment portfolio at your free will.
C. Innovation and Creativity: The metaverse allows for creative freedom in developing virtual spaces and digital art, which can lead to unique investment opportunities that are not possible in the physical world. With the 3D Internet, auctions, awards shows and competitions, galleries and workshop studios are all available for creators and artists to level up their game. Investors as well can make a conscious decision before investing by attending interacting and exchanging in these virtual worlds. Trust has become the new currency, and the Metaverse, and all the technologies involved, can help building it.
These assets can act as a fence against traditional economic fluctuations because their value is not directly tied to any single currency or national economy. However, it's important to note that while they offer diversification, they also come with their own set of risks, such as market volatility and regulatory uncertainty. Investors should carefully consider these factors and conduct thorough research before investing. Let us explore some of them.
Challenges in Metaverse Investments:
The majority of metaverse real estate is owned by the Big Four: Decentraland, Sandbox, Somnium Space, and Cryptovoxels. However, two are the main problems for those who are not accustomed to this emerging technology: (i) these virtual worlds are designed for video gamers and (ii) the empty plots they offer as investment assets are always subject to speculation.
Millennials are not used to video game platforms and navigating through these worlds can be uphill and unattractive for them. On the other hand, offering only virtual plots without the necessary infrastructure limits the type of audience that can invest in these platforms (fostering the speculation), since the next required step is to hire the services of a professional to create/design the necessary infrastructure.
Investing in Metaverse platforms like the Big4 presents several challenges that potential investors are already discussing:
· Volatility and Speculative Nature: The value of virtual real estate can be highly volatile, with prices driven by speculation rather than fundamental value.
· Liquidity Concerns: Unlike traditional real estate, the market for virtual land is less liquid, which can make it difficult to sell assets quickly or at a desired price.
· Technical Barriers: Understanding the blockchain technology and smart contracts that underpin these platforms can be a barrier for some investors. Investors need to have a certain level of technical knowledge and skills to navigate the platforms where virtual real estate is traded.
· Platform Dependency: The value of investments is tied to the success and longevity of the platform itself, which is not guaranteed.
· User Adoption: The long-term value of these platforms depends on sustained user adoption and engagement.
· Technological Advancements: Rapid changes in technology could make current platforms obsolete, affecting the value of investments I the platform is not committed to integrate those advancements at the appropriate pace.
These challenges highlight the need for thorough research and a cautious approach when considering investments in the Metaverse's virtual real estate. It's important to stay informed about the latest developments and trends within each platform and the broader Metaverse ecosystem.
OK, now that we have covered level 2 assets, let's find out what makes Harlem Genesis digital assets entitled to “Level 3 currency-neutral assets”.