Buying Virtual Property: 4 Key Principles to Consider | HackerNoon

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'Buying Virtual Property: 4 Key Principles to Consider' decentraland metaverse

The rise of Decentraland and the emerging market for virtual properties raises a couple of practical questions for investors:

However, if you’re an average investor looking to diversify your portfolio and own a piece of the metaverse, it helps to have a set of principles or a framework to structure your investment analysis and provide a gut-check before you spend thousands on 1s and 0s. Their data-driven approach revealed some interesting insights that I think might be helpful to new investors:A major principle of physical property valuation applies in the metaverse too.

Investors looking for the greatest ROI will want to consider buying close to districts where gambling, sex, and other adult activities are promoted. The researchers found that virtual land close to the red light district, for example, commanded higher prices. Every Decentraland parcel has unique co-ordinates which represent a specific location on the Decentraland map. Because land parcels can be visited instantaneously by inputting address coordinates, investors assigned higher land values to parcels with addresses that were memorable.

 

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