An Emerging Trend: Rare and Unique Real Estate Collectibles
While the underlying trend of NFTs and real estate is not new, there has been a surge in real estate-related NFTs in recent months. This was driven by the launch of Next Earth, the only blockchain-based virtual land ownership platform on an exact copy of the earth.
The growing popularity of these digital lots has resulted in many successful sales as users acquire iconic properties from the Playboy Mansion to the White House.
What is a digital collector’s item?
A digital collector’s item (or NFT) is an asset that exists as data on a blockchain. This can be a picture, a video, a piece of music, or any other type of file. The distinction between a tangible NFT and an intangible NFT is often blurred – many objects have parts that are both physical and virtual.
For example, one could create NFTs to verify authentic shoe ownership and to merge the physical and virtual world. Next Earth NFTs represent virtual tiles of the earth and similarly merge the metaverse with the physical plane.
The appeal of real estate-related NFTs lies in their connection to real estate. Rare works of art can also have sentimental value to collectors, but they are not directly tied to a specific location.
Real estate assets such as apartments or houses are unique units with specific geographic coordinates – they exist both in space and in time. As such, they naturally offer themselves to be represented in the blockchain via NFT smart contracts.
Why do real estate collectibles have value?
NFTs have been around since 2013, but it wasn’t until 2021 that the first NFT platform was created specifically for virtual real estate: Next Earth.
A few months ago you may not have heard of an “art crypto” or “real estate crypto”. Today, these terms are commonplace in the world of cryptocurrency (and blockchain technology in a broader sense). Why has the production of these digital collectibles increased so suddenly? The answer is simple: demand.
One of the main reasons real estate-themed digital collectibles have become so popular is because of their scarcity. Unlike regular JPGs, which are freely available and can be copied by anyone, these rare NFT collectibles are limited in number.
In addition, these virtual properties are also tied to real locations (such as an iconic building or landmark), which in combination with the NFT itself offer additional added value. For example, an individual could purchase an NFT on a famous property such as the Empire State Building.
The future of real estate collectibles
As NFTs continue to arrive in the mainstream, the digital collectibles market is likely to continue to grow and diversify. With new platforms added every month, consumers have more options than ever when it comes to investing in digital art.
As digital art and culture evolve, so will the potential for NFT collectibles. The current surge in real estate-related NFTs can be attributed to a number of factors.
First, there is growing interest among both NFT collectors and investors in digital art forms inspired by real world phenomena. Digital collectibles are growing in popularity as people look for new ways to diversify their portfolios and invest in unique assets.
Second, investing in digital real estate has never been easier and more accessible with the advent of platforms like Next Earth. These platforms allow users not only to create virtual worlds, but also to develop virtual objects within those worlds.
As real estate is becoming an increasingly attractive asset class for institutional investors, it is not surprising that digital artists are also exploring this emerging space.
The sky is the limit, and Next Earth has a number of exciting developments in the pipeline to bolster the real estate collectibles market, including the ability to create pixel art on the blockchain and turn your virtual property into unique country art.
Photo by Philippe Oursel on Unsplash