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CUBAN: Buying property in metaverse ‘dumbest’ idea ever…

Buying digital land in the metaverse might not be the best usage of your money, in accordance with billionaire investor Mark Cuban.

Although Cuban is really a well-documented cryptocurrency enthusiast, he called purchasing virtual property in the metaverse “the dumbest s— ever” in a recent interview on the Altcoin Daily YouTube channel.

Despite as an investor in Yuga Labs, which owns popular NFT collections such as for example Bored Ape Yacht Club which has sold digital land plots, Cuban said buying virtual property is “dumb.”

“It had been great money for them, but that wasn’t based off utility,” he said.

In the physical world, property is valuable because land is really a scarce resource. However, that scarcity doesn’t invariably connect with the metaverse.

In these virtual worlds, “there’s unlimited volumes that you could create,” Cuban said through the interview.

The rise and fall of digital property

This past year, metaverse platforms experienced a virtual land rush as users collectively spent millions on digital property. Combined sales on four major platforms reached $501 million in 2021, in accordance with MetaMetric Solutions.

In some instances, virtual property went for just as much as a physical house. Republic Realm, an investment firm that owns and develops virtual property, dropped an enormous $4.3 million on an electronic property located within The Sandbox, among the largest metaverse platforms, based on the Wall Street Journal.

A virtual plot close to Snoop Dogg’s digital mansion within The Sandbox was purchased for $450,000 by an NFT collector who goes on the name “P-Ape” in 2021.

However, the virtual housing bubble could have popped.

By August 7, the common sale price for a bit of virtual property on metaverse platform Decentraland was $14,385.27, in accordance with WeMeta. That’s down about 61% from the peak average sale price of $37,238.68 in November 2021, based on the site.

Given the unpredictable nature of the metaverse and cryptocurrency, financial advisors recommend only investing just as much money as you’re ready to lose. You can find no guarantees that you will earn a benefit from your investment.

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