What is NFT Virtual Land? The Confusing Term, Explained

05/17/2022By: C, Fiona

Are you curious about what NFT virtual land is and whether it’s worth buying some? Find out if there is a virtual land for your curiosity and find out if it is suitable for you to invest here.

Virtual world is becoming a trend space in most financial fields. Metaverse continues to gain traction because it allows most physical activities, such as games, property ownership, and similar activities to be imitated and monetized in virtual space. This explains the concept of NFT virtual land, because it is actually the virtual representative of real estate.

This means that even if there are platforms to purchase tangible land and property in the real world, there are similar platforms, making it possible to obtain intangible land and property in the virtual world. Therefore, investing in NFT virtual land only means investing in real estate on the blockchain.


What is Metaverse?

Metaverse is the fusion of virtual world and real world. It has become one of the most popular technical specifications in the whole international media field. It is best described as a virtual world that integrates different aspects of our digital and real life, including social networking, games, work and entertainment. It is often used to allude to the future version of the Internet, that is, to see that virtual, persistent and shared spaces can be accessed through 3D interaction.

Metaverse clearly reflects the next big leap in the development of the Internet. As mentioned earlier, Metaverse continues to gain traction because it allows most physical activities, such as games and property ownership, to be imitated and monetized in virtual space.

Therefore, it can be correctly said that Metaverse activates the possibility of acquiring and investing in virtual land. Metaverse provides the potential to make virtual real estate a physical reality in the future. Nevertheless, it is important to understand that buying virtual real estate means buying land in the Metaverse.

Definition of NFT Virtual Land

NFT virtual land refers to the digital land area that can be owned or acquired through the Metaverse platform. Since non forgeable tokens (NFTs) represent ownership of parts of assets, they are also suitable for representing land ownership because each is unique and it is easy to prove digital ownership.

Therefore, in order to represent the unique ownership of an area, users need to purchase NFTs related to specific plots of the digital land. Users can purchase these plots directly from the project or in the secondary NFT market through land sale.

Some existing NFT land projects have become very popular in the records of more and more investors. These NFT land projects include decentraland, the sandbox, and axie infinity. Interested blockchain users can obtain these NFT lands and use them for various purposes. NFT land can be used for advertising, social networking, games, work, etc. What users can do with NFT land depends on each project.

Virtual Land and Real Estate

The relationship between virtual land and real estate is the opposition between their mutual characteristics and tangibility. In other words, virtual land and real estate are terms with similar characteristics, but one is tangible and the other is not.

Real estate describes properties such as land and buildings on land, or other forms of natural resources on land, such as water and trees. It means tangible and physical properties that can be realized in the real world.

On the other hand, virtual land is a simple non tangible real estate. As mentioned earlier, NFT virtual land is a digital land area in the Metaverse project. They only exist in the virtual world and can be obtained through the tokens of the Metaverse projects carrying these lands.

Why Buy Virtual Land?

Due to the many benefits of owning virtual land, virtual land has attracted the interest of many cryptocurrency investors. The feeling of ownership of intangible assets such as land is an experience that anyone wants to explore. Here are some reasons why you should consider buying virtual land.

First, the process of acquiring virtual land is often easier than acquiring real estate in the real world. Through the implementation of blockchain, the purchase of virtual land is more secure, traceable and easy.

Secondly, the connection between virtual land and the rapidly developing field of cryptocurrency investment makes it possible for virtual land to provide special returns. This means that investors only need to buy virtual land with relatively low price to achieve the purpose of long-term investment. They will buy land when the value is quite low, and wait until the price of the land rises to the extent that they want to resell it.

Other benefits associated with buying virtual land include stable income like the real world and the privilege of having a new asset class that will not depreciate. As mentioned earlier, Metaverse land can be used for a variety of purposes, including advertising, social networking, work and games. The owners of Yuanqi mainland can provide space and charge for advertising, or hold activities on these lands to encourage socialization.

Risks Associated With Virtual Land

While virtual lands offer unique benefits to owners, there are some risks associated with owning them. There is a trend that the results of investing in virtual land may not be positive, because the future of virtual land is uncertain. In the long run, it is difficult to predict whether virtual land will have good benefits.

In addition, there is no guarantee that the blockchain used to purchase virtual land will gain traction and be adapted in the future. Therefore, there is almost no trend of land appreciation in the future. Virtual land is often not cost-effective in most cases, so people’s investment is at risk.

How to Buy Virtual Land

It is important to understand that the process of purchasing virtual land is not complicated. Investors who intend to buy NFT real estate can simply establish a cryptocurrency wallet, add cryptocurrency funds to the wallet, and then access the NFT market that provides NFT land and real estate sales. Nftoxeals and Sealand offer leading real estate sales.

Conclusion

Considering the emergence of NFTs and Metaverse, the speed of gaining traction, and how they become the main trend in the cryptocurrency industry, it can be suggested that the idea of owning virtual land may be good in the long run.

As real estate has paved the way for financial freedom for many people in the real world, virtual land, as a virtual replica of real estate, may also lead investors to the road of financial freedom.