Metaverse — do you think there’s potential profit and commerce to be had in CRE or do you think it’s really rich companies just buying into technology that won’t go anywhere?
Basically the title. I’ve been hearing rumblings of companies buying into the metaverse (think Ready Player One and Walle)— do you think CRE is going to play a key factor and should I start investing now?
[{"id": "hxtnkum", "text": "I stay away from anything that is non-tangible and not backed by a transparent contract. It has worked for me, so far.", "replies": [{"id": "hxtwgwr", "text": "I think smart contracts are very transparent. If you understand the limitations of the code. It is just subjecting yourself to a different tribunal/judge.", "replies": [{"id": "hxtx3dj", "text": "&gt;I think smart contracts are very transparent\n\nAnd how liquid are they? How many people trade into such smart contracts? The more the people trade into those contracts more robust they get. Contracts are critical to any asset class and it only gets vetted over with time - No short cuts.", "replies": [{"id": "hxu6dem", "text": "I pitched a blockchain based leasing platform in business school for tangible real estate and feel whoever develops it in decentraland will unlock a lot of value in the land. From my perspective its just an immersive version of online shopping.  In 2021, unit sales of VR) headsets worldwide are forecast to amount to 6.1 million units, bringing the total cumulative installed base to 16.44 million units. By 2024, the cumulative installed base of VR headsets is expected to surpass the 34 million mark.", "replies": [{"id": "hxu8bab", "text": "I think you're using the wrong set of data to evaluate your  opinion. Take me for example,  I bought a new switch but due to work I get on it once a week. Another example is when I buy games on sale on Steam. While they're in my library,  I don't really play them since I tend to forget about them and I'm sure many others can say the same thing.\n\nI think the better set of data to evaluate your opinion is the # of active users on a daily basis. This way you can tell if people are actually using VR sets or it's just collecting dust.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hxto32m", "text": "I think virtual real estate has nothing in common with actual real estate. If you want to invest in virtual real estate, it\u2019s not different than investing in NFTs. It\u2019s not a cash generating asset.", "replies": [{"id": "hxutuk2", "text": "They are making more sophisticated smart contracts that can be cash generating, it\u2019s a very immature field still- but again, we aren\u2019t quite there yet and who knows how it actually will turn out", "replies": [], "depth": 2}, {"id": "hxwmexq", "text": "I actually think if you have a virtual \"store\" there and someone buys something at the \"store\"  you would count that as revenue.  I don't think it's riskless - see the dust heap of social media history, MySpace, Friendster, and probably Facebook if younger people keep shunning it (the site; Meta will keep buying things like Insta and stay relevant).    \n\n\nSo I think virtual real estate is pretty speculative, especially right now when you're kind of dealing with the wild west/early stages, but unlike NFTs where literally nothing is changing hands, I believe there is some value.  The value derives from foot traffic, virtual though it may be, and advertising as well.  If there are eyeballs and \"feet\" in front of your \"store\", I think it's got some value, even if it could evaporate pretty quick.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hxto5hk", "text": "Remember SecondLife?  All the car manufacturers bought into it, setting up virtual showrooms to show their cars.  Online. Online showroom.  Salesman's nightmare.    Nothing will ever compare to reality.   \n\nI have a good question. If location (as it impacts rev) is 95% of the value of a property, let's say a warehouse in the desert vs a warehouse in a bustling city,, then doesn't every location become moot if you can instantly travel somewhere for free?  I mean, I guess if you can make it income producing, but isn't it more of an income producing note then?  I think it's more like websites, where the more traffic you have, the more it will be worth.  But you're really at the whims of the webmaster, if FB decides that people can skip around, then traffic is more of a destination issue, not billboard on the side of the road issue.", "replies": [{"id": "hxtt333", "text": "Ahhh I\u2019ve never heard of SecondLife \ud83d\ude2c \n\nInteresting! Yes, location sounds like it matters in the metaverse too\u2014 it\u2019s heresy, but I heard the \u201cplot\u201d next to Snoop\u2019s \u201chouse\u201d was much more expensive. \n\nRight now it\u2019s sounded like people with too much money looking to just spend it\u2014", "replies": [{"id": "hxuofzq", "text": "And do you even 'own' it?  It's not like you get title. And if you violate T&amp;C, what's your recourse?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hxttp0e", "text": "I was thinking about investing but it just seems like a gimmick right now, like the hottest thing to dumb money into, maybe it will take off who knows.", "replies": [], "depth": 1}, {"id": "hxtwcvv", "text": "I too am into the idea. But it\u2019s not real estate anymore than a website is \u201cbuying unique domains\u201d. It\u2019s much more of a marketing opportunity. \n\nhttps://youtu.be/Y5WIw9Gg1bA", "replies": [], "depth": 1}, {"id": "hxu0upz", "text": "The Metaverse is the future.  Most will never realize that, or understand the significance of it.  It\u2019s still early but you are on the right track.  Don\u2019t let others deter you by their shortsightedness or their biases.", "replies": [{"id": "hxu1ebz", "text": "I\u2019m skeptical in general but seeing so much activity keeps me interested.", "replies": [{"id": "hxyrt8u", "text": "Just saw in the news: UK mansion worth 29mil first to be sold in real life and Metaverse.  This is the beginning of dual reality real estate offerings.", "replies": [], "depth": 3}, {"id": "hxysacj", "text": "All the down votes from my original response is proof of its validity.  Don\u2019t be like those dinosaurs, welcome the enviable with open arms.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hxu47df", "text": "Maybe. The most valuable real estate in the world is the six square inches that everyone Has in their pocket that they spend 4 hours a day on, and that is your phone. \n\nI am not sure what that means for cre, except that industrial buildings killed retail buildings and your house killed the office. So things can change and the internet changed them. \n\nDoes that mean spending a bunch of money? Not really unless money itself goes away and virtual real estate somehow cannot be taken by the government or any company. If virtual real estate is the only thing people can own in the future, it kinda sucks. Sorry kids. \n\nI am not sure I would want to live in that world and this would not like to invest in it.", "replies": [{"id": "hxwttth", "text": "\u201cIndustrial building killed retails buildings and your house killed the office.\u201d\n\nLol, that\u2019s such a ridiculous claim. In-person retail grew last year by more than internet commerce, and the death of retail is nowhere in sight. Have things changed? Yeah, sure, but office and retail will be here in 100 years.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hxuxs1m", "text": "This is more marketing the re .  Will companies buy meta property and do ad buys based around it some day?  Probably.  \n\nPeople buy re for physical reasons.  If you could instantly move from some place in iowa where land is 5k an acre and nyc where its 10 million an acre or whatever those prices would equalize .  \n\nEverything about re that gives it value isnt true in the meta verse so I expect it to be more like selling ads on a website etc.", "replies": [], "depth": 1}, {"id": "hxv0xg0", "text": "Bubble", "replies": [], "depth": 1}, {"id": "hxvmxty", "text": "This question has nothing to do with real estate", "replies": [], "depth": 1}]