“Uncertainty in the metaverse universe has devalued virtual lands”
- Technology
- 07/07/2023
- 493
The values of virtual lands in the Metaverse universe, which started to be sold in 2021, fell rapidly. Assistant Professor Ayça Maden, who conducts scientific studies in the field of blockchain and metaverse, spoke about the falling prices of virtual land. Maden said, “Metaverse has great uncertainties. These uncertainties cause investors to be cautious and values to fall. As technology advances and the number of users in Metaverse universes increases, the values of virtual land may rise again.”
Metaverse, which offers a virtual world parallel to the real world, continues to attract great interest. The values of virtual lands offered for sale in the Metaverse universe are decreasing day by day. Stating that the rapid decline in the values of virtual land may be due to multiple factors, Assistant Professor Ayça Maden made a statement on the subject. “The formation of speculative bubbles, increased competition, uncertainties and technological challenges may be among the factors that play a role in this decline,” Maden said, “Many people who initially invested in the Metaverse universe focused on making big profits quickly. They bought virtual land in a speculative behavior, raised their hopes and thought that values would increase rapidly. However, this rapid appreciation led to speculative bubbles and artificial price inflation. With increased interest and participation, many new virtual land projects have also emerged. More competition and choice has increased the supply in the market. This disrupted the balance between demand and supply, leading to a decline in values.”
“UNCERTAINTIES CAUSE INVESTORS TO BE CAUTIOUS AND VALUES TO FALL”
Stating that some projects did not meet expectations, Assistant Professor Ayça Maden from Beykent University said, “Values dropped due to reasons such as user experience problems and technical difficulties. Uncertainties about sustainability in the Metaverse universe were effective in the decline in values. Recently, there has been a lot of discussion and speculation about what the future of the Metaverse will be. For example, there are major uncertainties in the Metaverse, such as whether the advances in technology will be sufficient, whether it will be widely accepted by people, what the new legal regulations on virtual environments will be, how ethical and moral problems in virtual environments will be solved, security and privacy risks. These uncertainties cause investors to be cautious and values to fall.”
“INVESTMENTS IN METAVERSE PROJECTS BY SPORTS ORGANIZATIONS OR ARTISTS CAN INCREASE THE VALUE OF VIRTUAL LAND”
“Metaverse generally uses a combination of different technologies as infrastructure,” Maden said, “These include technologies such as blockchain, virtual reality, artificial intelligence, cloud computing. As the technological infrastructure and user experience of the Metaverse universe improves, people’s trust in virtual worlds may increase. As better graphics are designed and data is transferred faster, people’s interest in the Metaverse can be kept alive, which can increase the value of virtual lands. Also, as big brands and companies become more interested in the Metaverse, it is possible that popularity and values could rise again. For example, if popular gaming companies, sports organizations or artists invest in Metaverse projects, virtual worlds could reach a wider audience, which could increase the value of virtual land. More sustainable and profitable business models for the Metaverse universe could play an important role in increasing values. For example, if models are developed that allow users to generate income from virtual landscapes or invest in Metaverse projects, people could be attracted to these virtual worlds and values could increase.”
“NEW WAYS OF GENERATING INCOME BY USING THE LAND MAY BE SOUGHT”
Stating that as technology advances and the number of users in Metaverse universes increases, the values of virtual land will rise again, Maden said, “Another approach may be for virtual land owners to maintain their current value or minimize their losses by selling at the appropriate time. According to this view, the value decline in Metaverse universes may become a continuous trend and many land owners may look for a favorable sales window to recover their investment. Alternatively, virtual land owners may develop different strategies to avoid being affected by the loss of value. These strategies could include looking for new ways of generating income using the plots, trading in the virtual world or providing services to other users. In this way, landowners can increase their income potential and minimize the effects of depreciation.”