Digital real estate, NFTs and virtual art – why are people paying millions for online ownership?

While it might sound ridiculous, you might want to see the latest thing celebrities are funnelling money into as the world moves online.

Why you should probably just give up buying a house and go for an NFT next to Snoop.

Maybe I’m wrong, but chances are you’re never going to own the Eiffel Tower or the Opera House, let alone a three-bedder in an inner city suburb.

But how about a digital version? A token that says you and you alone own this irrefutably unique piece of the internet representing something in real life?

If that sounds ridiculous to you, it’s not your fault. Most of us have grown up in a world where value is placed on something tangible.

However, a growing trend online has seen millions of people fight tooth and nail over the “ownership” of tokens representing everything from art to, yep, pockets of “real estate” in various online worlds.

The wacky development has sprung out of the NFT (non-fungible token) phenomenon, which is basically an extension of the blockchain technology that powers cryptocurrencies.

While cryptocurrencies operate as an actual trading tool, NFTs exist as an “official” tag of ownership representing something digital.

Still in their infancy, the value of an NFT appears to be purely based on what people are willing to pay to have their name displayed online as the owner – and some are clearly willing to plonk millions on everything from artworks to virtual plots of land.

Online companies have already caught a whiff of the digital real estate phenomenon and have already begun developing their own metaverse empires.

For example, virtual land developer Metaverse Group is expanding its reach in digital real estate by investing up to $1 million in SuperWorld, a website where users can buy and sell versions of global landmarks like the USA’s Mount Rushmore and the Great Wall of China.

Like it or not, this will probably be you in a few years.

SuperWorld has digitally mapped the entire Earth's surface and offers users more than 64 billion unique plots of land for purchase, collection and curation.

Metaverse Group has reportedly thrown an initial investment of $250,000 at the augmented reality project, purchasing several plots of virtual land on the SuperWorld platform world.

Each plot ‍of NFT land on SuperWorld’s server translates to the real-world equivalent of a 100m by 100m of space, or about the size of a sports stadium. What you do with it from there is up to you. You can rent it out, or “develop” it, such as adding an online casino or e-commerce outlet.

“As we choose key strategic locations that will continue to diversify our eight-figure metaverse real estate portfolio, this partnership will bring a larger brand marketing opportunity for businesses looking to enter the metaverse,” Metaverse Group CEO Lorne Sugarman said in a statement.

While the entire schtick could easily burst and leave investors with egg on their face, the possibilities for growth in the online sphere truly are endless.

Major investors like Cathie Wood, CEO of ARK Invest, believe the value within the metaverse could be in the trillions deep into the future.

“We‘re going to have our digital twins, and it’s going to enable a lot of fun and a lot of efficiencies,” she said on CNBC Pro Talk.

As the world spends more and more time in virtual reality worlds such as Facebook’s anticipated Meta product, the value of a virtual plot of land could skyrocket purely for its “vicinity” to a celebrity’s NFT, or something like an online event such as a virtual Travis Scott gig.

Are you familiar with how to buy LAND?
👉 https://t.co/7jlziKPzkq
And what you can do with it?
👉 https://t.co/3ojZnO22mD

2️⃣ hours to go…
👉 https://t.co/0DAolVHUkEpic.twitter.com/nCLWZIBEwd

— The Sandbox (@TheSandboxGame) January 13, 2022

Technically, any website with enough computing power could develop its own online world offering plots of virtual land – all that matters is the hype surrounding the space.

Platforms like Sandbox and Decentraland have been particularly popular in the early rise of digital real estate, capitalising on early interest and selling some of its more fetching plots for millions. Sandbox, a virtual world that allows fans to build 3D games with zero coding experience, has claimed over 65 per cent of its online space has already been sold.

Speaking of hype, renowned gangsta rapper and suspected fame-addict Snoop Dogg has already made moves to make his own metaverse within Sandbox to sell NFTs to fans.

In December, an NFT collector known by the name “P-Ape” spent over half a million dollars for the privilege of becoming Snoop Dogg’s next-door neighbour in the “Snoopverse”.

“I‘m always on the lookout for new ways of connecting with fans and what we’ve created in The Sandbox is the future of virtual hangouts, NFT drops, and exclusive concerts,” Snoop Dogg said in a press release.

I’m entering the #metaverse with @TheSandboxGame !! #TSBxSnoopDogg#NFThttps://t.co/DZvSV4NNScpic.twitter.com/zoa87iDhRl

— Snoop Dogg (@SnoopDogg) September 23, 2021

With the median house price in Australia’s capital cities rising as high as 25 per cent in 2021, the prospect of funnelling your cash into a completely virtual plot of land might not be the craziest idea.

Just make sure your digital bungalow is perched somewhere near a famous rapper or houses an online casino.

Snoop says buy NFTs.