This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It seems like talk of the metaverse is everywhere these days, with news of novel and exciting planned additions to this collection of virtual 3D worlds cropping up constantly. It's a wild time to be an investor, to be sure. Based on the hype, investing in metaverse spaces seems like the next big thing for anyone with a few spare dollars lying around.

Although it's easy to buy metaverse real estate, it's not the right choice for just anyone. Not only is it a very risky investment, there are still a lot of unknowns. Even so, there are some reasons to jump into this space as an investor, including those outlined below.

You have a brand or business to promote

If you have a company or brand that appeals to Generation Z (those people between 10 and 25 years of age), the metaverse could be a great place to connect with them. A lot of the members of this generation are already in the workforce, and they're familiar with digital spaces that look and behave like popular metaverse platforms, including Decentraland and The Sandbox. Gen Z already has an estimated collective buying power of about $150 billion.

Because these people are largely less interested in older social media platforms, they tend to find themselves interacting with each other on platforms that inhabit the metaverse, or those that are metaverse-like. This is a version of the internet that Gen Z knows well and is comfortable with, and a good advertiser takes their business where their customers are. After all, Gen Z is the future of the internet, and what they imagine it to be will necessarily become reality as they come of age.

You want to help other companies find a foothold in the metaverse

If you already have a pretty good idea of how the metaverse will work and what kinds of projects will make sense in the space, then it might be a great idea to invest in metaverse real estate with the intention of becoming either a developer or a landlord.

Many companies are trying to find a way to get into the metaverse, but don't really know what to do first. Metaverse developers can help them take a project from the idea phase through execution, often with many partners that help add expertise along the way. They may advise on where projects should be built, or when they should launch (such as during Fashion Week in Decentraland), and they often acquire property to develop before reselling it.

Metaverse landlords, on the other hand, know what they want to build and to whom they want to lease those spaces. They seek out businesses and brands that want a metaverse presence, but aren't sure they're ready to commit fully to purchasing virtual land. Metaverse landlords stand to generate long-term rental income if they design appealing structures in great locations.

You want to build something for yourself

One type of metaverse real estate investor that we rarely discuss is the kind who is curious about this bold new world and also very tech-forward. They probably are already dabbling in cryptocurrencies, and likely have been playing around in metaverse spaces, but haven't yet set down roots. For individuals of this type, buying a piece of digital land could be more an act of self-expression than an act of investment.

However, simply by holding that virtual property -- even if it is, for now, just an empty lot or an art installation -- they become investors, too. According to a Citi GPS report, by the end of this decade, the metaverse can be expected to expand to as many as 5 billion users and a total addressable market of up to $13 trillion. The likely end result of such expansion is that many parcels of digital land will grow in value even if they've only been used for their owners' enjoyment. As long as the platform you choose has a healthy community and is driven by a sense of collaboration, people will continue to make it their digital home.

The metaverse isn't for every investor, but many belong there

Although investing in metaverse real estate can seem like a pretty dodgy experiment, there is mounting evidence that this alternate reality is here to stay. With a limited supply of building lots and a potentially unlimited number of users, the value of real estate on any metaverse platform will be driven, in part, by its popularity. It's the same for physical land in any neighborhood in any city or town.

This early in the growth of what is expected to become the metaverse, there's no way to really know which metaverse platforms will hit and which will shrink into obscurity, but if you're the betting type, or you have a business plan in mind that would benefit from a metaverse presence, you definitely should give it a try. Patience is key, because it will take time (and effort) for these platforms to mature. But there's only so much downside versus enormous upside to being an early adopter of technology that has the potential to become a whole new way of connecting people around the globe.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy Metaverse real estate? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. . Kristi Waterworth owns Decentraland. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Although it threatens to become buzzy, the word "metaverse" actually means something, and as the days of fresh interest in this collection of blockchain-based worlds grow longer, it's increasingly meaning even more.

Currently, there are about 400 million users of the collection of worlds that make up the metaverse. These users socialize, create, dream, build, and, most importantly, buy within this space that is only limited by the human imagination.

That's part of what's driving the metaverse real estate stampede, after all. There are so many people in this universe, and businesses and brands want to be there, too. But what happens tomorrow? After all, dropping $2.4 million for property in Decentraland, for example, as Tokens.com did back in November, isn't a short-term move. 

The future of the metaverse

In many ways, it can be hard to predict exactly what the metaverse will become, since recent spikes in more mainstream interest have only really started since November 2021, when Meta Platforms changed its name and boosted awareness of this obscure corner of the internet. However, interest didn't stop then, and businesses and users both continue to explore new ways to develop metaverse real estate to suit their own needs, signaling that they're digging in longer term.

According to a recent report by Citi, by 2030, the metaverse will have grown to 5 billion users. That's billion with a "B." Citi predicts this will be an $8 trillion to $13 trillion opportunity, though we don't yet know what types of properties will be favorites and what will produce the best investment growth over the long run.

Opportunities abound for investors

The metaverse is a space filled with untapped potential that's just starting to unfold in a very big way. Although only a few metaverse platforms really offer the opportunity to purchase virtual real estate, those platforms are growing rapidly. In addition, interest in land is generally stable, with approximately 10,000 sales worth $63 million transacted across the 10 metaverse platforms that NonFungible.com tracks for the 30-day period ending April 7, 2022.

Some of those properties will certainly go to curious technophiles, but plenty will end up in the hands of investors and brands looking to enter this strange new world. What will they become? Anything that the owner can imagine. It's that simple.

Future metaverse landlords can earn passive income from such diverse projects as billboards and shopping malls, with more active income possible if you're looking for a bigger challenge. For example, active investors might purchase land and build custom structures for clients, sell those projects upon completion, and then roll those profits into the next client. 

There is great potential for metaverse real estate investors right now. Interest in the metaverse continues to hold fairly steady, despite an unsteady wider investment market. For example, in Decentraland during the first quarter of 2022, there were about 5,108 total sales, worth about $11,685 each. The Sandbox saw more sales during that quarter, 11,971, but for about the same price, $11,137.85.

In short, there are ample opportunities for virtual real estate investors in the coming years. Big brands across the globe are working hard to develop metaverse properties that reflect who they are and how they see the metaverse growing, and you can, too. The best time to buy metaverse real estate was back in October 2021, but the second-best time to buy is right now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Prediction: 5 billion people will be in the Metaverse by 2030 appeared first on The Motley Fool Australia.

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Kristi Waterworth owns Decentraland. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The world of cryptocurrency and blockchain has been the center of a great deal of controversy for some time now: Should it be regulated? How can it be regulated? All these questions have been tossed around without any solid answers from the U.S. government.

Some crypto investors have feared that it'll be regulated into nothingness, so when President Biden announced he would be presenting an executive order regarding crypto, some investors were left holding their breath, including the owners of metaverse real estate and other items secured by non-fungible tokens (NFTs).

But instead of fear and contention, the executive order unveiled on March 9, 2022, seems promising and has many experts in the crypto world breathing a sigh of relief. Here are some pieces of good news coming out of this big day.

1. Crypto and related assets will finally have a uniform set of rules

Currently, much of the regulation of crypto and other assets like NFTs is done through enforcement by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Unfortunately, having too many cooks in the kitchen is always a huge mess, even if you're talking about an investment tool.

This executive order mandates that everyone get together and figure out how to be on the same page about blockchain-based investments and how best to regulate them. This brain trust includes the parties you'd expect, including representatives from the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency, as well as other important folks like the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the attorney general, and many more.

It may not sound like a big deal, but it's actually critical that rules related to the cryptocurrencies you're using to buy your metaverse properties are uniform across the entire government. It'll help project the value of your investments by creating consistency in enforcement when there's trouble, as well as consumer confidence and legitimacy from the simple act of being regulated.

2. The government seems willing to work with the crypto community

Not only is the US government interested in exploring Central Bank Digital Currencies (CBDCs), which are basically a digital form of the dollar, it's looking for guidance from crypto community experts. This legislation will not have an overnight solution, and all agencies involved have been asked to conduct thorough research and submit well-considered reports on all sorts of crypto-related issues. 

Inevitably, this is going to mean coming into contact with and listening to the people who are currently involved with NFTs and cryptocurrencies. These are the experts who have the data that will be necessary to formulate a plan of action. Working on problems from within the government is always going to be the easier route for crypto enthusiasts, including owners of metaverse real estate.

The issue of the digital dollar is an interesting one and one that could potentially make purchasing land in the metaverse easier and more attractive to average people looking to take their first steps into metaverse investing. If a CBDC dollar is issued in a way that can easily interact with current crypto markets, exchanging digital dollars for MANA or SAND on the fly would eliminate a lot of barriers to purchase for a lot of potential metaverse investors.

Reducing the steps that are involved in getting into the world of crypto for a first-time investor, such as removing the need to convert fiat dollars into cryptocurrency in order to fund a digital wallet for metaverse buys, may make the entire metaverse a lot less intimidating.

Crypto and metaverse legislation isn't set in stone - yet

Although this first step was a doozy, the executive order issued by President Biden primarily focuses on how to begin to approach regulations that should surround cryptocurrencies and other blockchain assets. It's a big deal simply because it finally exists, after years of politicians simply kicking the rock down the road.

For holders of digital assets, changes are almost certainly coming, but they should be neither swift nor opaque, given the approach that's being taken at the moment. Having experts from within the crypto community help with research will help protect the interests of investors while the very laws that will finally give crypto assets wider real-world integrity are being crafted.

I suspect that once people feel more secure about purchasing metaverse land backed by NFTs, since there will be laws and regulations in place to protect from the worst actors, they'll become an even more important part of the crypto asset pool.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 pieces of good news about Biden's crypto mandate for metaverse investors appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.