Definition of "Is digital real estate legit?"

Although we keep hearing about it, there’s still a lot of uncertainty around digital real estate, also known as virtual real estate. The terms refer to the ownership and usage of online assets like websites, domains, and different social media platforms. With the evermore-increasing importance of a strong online presence, digital real estate has become a viable investment opportunity for many people. But since it’s so new, many wonder if it’s truly a legitimate investment and also how to buy digital real estate

“Traditional” digital real estate

Well, the short answer would be yes, digital real estate is a legitimate investment. But since digital worlds are expanding at an incredible rate, the answer has become a little bit more complex than that. 

In the beginning let’s talk about what is digital real estate. In the past, digital real estate referred to assets on the internet like websites, domains, or social platforms. Many businesses became successful by buying and selling those, and doing transactions with the help of those. Digital real estate, in the “traditional” sense, can be a very valuable source of income since it’s a tool for making money through advertising, e-commerce, content marketing, and several other online activities. Another great perk of owning digital real estate is that they provide platforms for businesses to reach larger audiences and, thus, establish and build their brand awareness.  

What else counts as digital real estate?

Digital real estate can be anything from a simple website to virtual land owned in the metaverse. As digitality has an increasing presence in our lives, the metaverse is already becoming sort of a parallel dimension we are invited to explore. The braver ones accept this invitation by exploring financially too. The metaverse refers to a collective virtual shared space, including all the virtual worlds, augmented reality, and the internet. Digital real estate can be in the metaverse, too, as virtual land or property, that can be owned, bought, or sold, like any other property. Virtual land or property can be bought either with real money, cryptocurrency or NFTs (non-fungible tokens), depending on the circumstances and seller’s preferences. These properties are usually used as investments or digital spaces to host digital events. Digital homes are also a thing, while some use digital real estate to build a virtual business. These have entered the world with a real boom during the pandemic, but digital spaces have been around for a while. You probably heard about the Million Dollar Website, created in 2005 by a student to fund his university education. He divided the home page into a million pixels arranged in a 1000 × 1000 pixel grid; and sold the space pixel by pixel, each of them worth $1. It became famous and eventually sold out mainly to companies who took the opportunity to put their logo on the page among thousands of others. 

It’s like any investment

The concept of digital real estate in the metaverse is still emerging, and it’s not yet clear what course its evolution will take in the long term. We don’t yet know precisely how its monetization will look in the future. However, it’s an area that is gaining increasing attention and interest. The metaverse evolves and expands, and we are just in the beginning, witnessing its growth.  

Investing in digital real estate can seem unavoidable in 2023. And even if it’s very different, it is still an investment, like any other. There are risks involved, and it can be crucial to be diligent and maybe do some research before making a purchase. Consider your choice carefully, and be aware of the potential risks and challenges you may face if things don’t go as well as expected. Also, like in the case of any investment you’re unsure about, you can always ask the opinion of a financial professional. “Older” digital real estate, like websites and social platforms, have already proven to be legit and even became necessary.  Digital real estate in the metaverse on the other hand is still quite new, and somewhat unpredictable. There are many enthusiasts, though, contributing to its growth, and ultimately to its legitimacy. 

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