Web3, Metaverse, NFTs, ChatGPT, AI, and blockchains, all these words have been thrown around for the past year in every sector. But how are they affecting the real estate industry? As one of the most lucrative and fruitful industries, real estate has a significant role in micro and macroeconomic trends in every part of the world. So it’s a no-brainer that Web3 and real estate are coming together to change the way the world operates.
Web3 and Real Estate
Since the dawn of time, purchasing land or real estate has been everyone’s top priority all over the world. This is due to many reasons, like shelter, investment, or even just prestige and status. But then came Web3 and changed the whole game.
If you are a bit confused about what exactly Web3 is, it’s basically the latest form of the internet. This includes blockchains, cryptocurrencies, non-fungible tokens (NFTs), metaverses, and AI. Now the real question is how web3 affected the real estate industry.
At the end of 2017, the world embarked on a new era when Decentraland (a metaverse) launched its first auction and sold parcels of virtual land at $20/parcel. By mid-2022 the prices have skyrocketed to reach $15000/parcel.
Besides purchasing a parcel of land, there are many ways the world can benefit from Web3 and real estate. So let’s take a closer look and find you the perfect opportunity!
– Real Estate and Metaverses
There’s a common misconception that Facebook’s Metaverse is a new concept or the only one out there. Metaverses existed long before Meta (Facebook) decided to join the race. You might have heard about the famous Sandbox or Decentraland, but there are even more and more metaverses out there!
Purchasing land in the Metaverse or essentially any metaverse means:
- Having an asset in the future that can hold its value without concern of natural disasters or your country’s economic trends.
- Easier liquidity, as you can sell it in an online auction in minutes
- Using it as an investment opportunity by renting or leasing it
– Cryptocurrencies and Real Estate
Many countries have started accepting cryptocurrencies (like Bitcoin, Ethereum, Cardano, and Solana) as a form of payment in all aspects of life. That even includes purchasing real estate both virtual and real!
Purchasing with a virtual coin can make the payment process easier and more convenient. Just tap, tap, tap and you will transfer the cost and own your virtual property!
The transition to cryptocurrencies can benefit residents of countries that have fluctuating currencies. However, that’s a double-edged sword, as cryptos also previously witnessed some downfalls and crashes. So always due your due diligence and don’t put all your eggs in one basket (purchase different cryptos).
– Blockchain Smart Contracts
One of the most nerve-racking processes is purchasing or investing in real estate. Just the amount of paperwork can make people lose their minds. Blockchains can eliminate all that hassle.
Through smart contracts powered by Blockchains, you can purchase a virtual or an actual piece of land with just some clicks on your phone. These smart contracts eliminate the third parties you usually need to make a purchase (ex: brokers and lawyers) and ensure there is absolutely no foul play in your ownership documents.
All the previously mentioned points can benefit any global citizen but as an Egyptian how can you benefit from the Web3 real industry revolution?
With ChatGPT entering the Egyptian market and everyone turning their eyes to AI and Web3, it’s time for you to know how to truly benefit from all that.
How can Egyptians take advantage of Web3’s effect on the real estate industry?
There are many ways Egyptians can benefit from the rise of Web3 and its effect on the real estate industry. For instance, if you just want to purchase a piece of land for investment reasons then you can turn into metaverse land purchases.
Due to the global economic crisis, the floating of the Egyptian currency, and the overall real estate vs inflation dilemma, holding your money as a form of virtual land can help you store money value. But this is a double-edged sword, as this a fairly new market, so there is still a long way to figure out if investment in virtual land can replace investment in real land, or if will it be another technologically far-fetched dream.
Another major advantage of investing in virtual land is that it opens you up to a whole new world with absolutely no limits!
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Bottom Line
Many people are wary about putting their money in virtual assets but with all the big corporations and even celebrities (even Snoop Dog has a piece of virtual land) trusting Web3 and its relation with real estate, maybe it’s not so scary!
In the end, you should always remember that any investment has its pros and cons, so just do your research, don’t put in any money you are too afraid to lose, and may the odds be in your favor!
