I thought we’ve seen it all….but no, we may have just regressed slightly as a human race, because now…people are spending upwards of $200,000 to own a piece of 1100 square foot, virtual, digitalized real estate in the game Decentraland. Enjoy. Add me on Instagram: GPStephan
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 OFF + FREE Coaching Call FOR A LIMITED TIME: Code THANKYOU50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
Let me explain what Decentraland is. This is a virtual reality world where you can purchase land through the Ethereum blockchain, and have full control over the content of that land that you own. You then have the ability to keep all proceeds from the value that you generate from other users because of the land that you own.
Despite common sense, that isn’t stopping people from spending considerable amounts of money buying and developing virtual land, and so far that’s proved rather profitable for those that got in early. Known as Genesis City, only 90,000 plots of land will be sold. The most expensive plot of land sold, so far, for $200,000, near its Central Plaza, where people first arrive when they enter the game…and guess what, the previous owner only bought that land for only $13,000.
Now this isn’t the first time people are paying exorbitant amounts of money for virtual items, practically all video games now go with the freemium business model by offering the game for free, and once you’re already enjoying the experience, you can pay for upgrades and other features. It’s a really, really smart business move that’s taken over gaming and the way creators are building apps…but how far is too far?
Here’s the problem I see - on one hand, we have the utility value of what something is worth. In a game like Decentraland, this could be how many daily active users there are, how much actual income your land generates in real, usable, currency, and the overall user growth of the game. From there, we can determine what an appropriate ROI is for the land and how that land can be monetized. But where people get carried away is the “Greater Fool” perspective…it’s the thought process that I’m willing to pay whatever price I need to buy something, because I believe someone else will be willing to pay more than I did.
Don’t get me wrong, coming from both a business AND investment standpoint, with some common sense practicality mixed in for good measure, there’s nothing inherently WRONG with buying something within a game - we’ve all done it. If buying an item gives you an edge over someone else in terms of game play, it becomes an ADVANTAGE where that item increases your enjoyment within the game. At that point, you’re simply paying for entertainment, just like you’d pay for a movie or a night on the town, and that purchase has an actual, measurable utility value.
So from that perspective, it’s all good - but how about as an investment? Here we go down the rabbit hole. We’ve seen this time and time again…if there is ZERO utility value, it will eventually fail. In order for something to be a viable long term investment, it needs to have a utility value - if it doesn’t, at best, it’s a speculative gamble. This carries over to ANYTHING you invest in.
So what’s my prediction on Decentraland? I think it’s a generic concept with the potential to be easily copied over and over again within different games. There’s nothing really unique about it, and because of that, there’s no reason why this would be more valuable than any other game out there. If they actually manage to get so big as to compete with Runescape or Minecraft, investors have a chance at really making some serious money - but that also ties back into the game having a utility function and providing more of a service than appealing to investors who want their piece of easy, quick money. The sad reality is that if investors are driving the market, not real, actual users…its destined to fail.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3

By Stock Chat

where the coffee is hot and so is the chat

34 thoughts on “I found the worst thing money can buy: virtual real estate for $200,000”
  1. Avataaar/Circle Created with python_avatars chancegoondavis says:

    Finally some one calling out virtual land im looking for critique videos and cant fund them

  2. Avataaar/Circle Created with python_avatars Roland (Rainititan@gmailcom) says:

    I advice anyone trying to buy a house but don’t have the complete funds. I urge you to Invest in stock market, then make good profit before buying a house, his mail address is above my comment
    I made $78k after just one week.

  3. Avataaar/Circle Created with python_avatars Trap Science says:

    I was looking for Graham land virtual Real estate plot. Haven’t seen it yet. 🤪🤪

  4. Avataaar/Circle Created with python_avatars Hugo Oliva says:

    Lol this aged poorly. Virtual land is the new commercial property. If YouTube only had 90,000 channels how much would you pay for it? This is the craziest space since owners of land could push to become a nation with its own currency, real estate, people, government and GDP

  5. Avataaar/Circle Created with python_avatars Austin Hendrickson says:

    Cheapest plots of land on Decentraland are like $12k now lol. Would have been such a great investment back in 2018.

  6. Avataaar/Circle Created with python_avatars Sana Haryani says:

    Funny how I'm watching this in 2021 🤣

  7. Avataaar/Circle Created with python_avatars Graham Stephan says:

    I was wrong. -2021

  8. Avataaar/Circle Created with python_avatars Review says:

    Now that $200,000 is worth 5-8 million in 2021

  9. Avataaar/Circle Created with python_avatars Jason Rogers says:

    This didn’t age well

  10. Avataaar/Circle Created with python_avatars Jer says:

    😂

  11. Avataaar/Circle Created with python_avatars Akshat Agarwal says:

    And today MANA is 300% up at 4.5$ 😂😂

  12. Avataaar/Circle Created with python_avatars Sick oss fu says:

    This aged well

  13. Avataaar/Circle Created with python_avatars Ivan Quezada says:

    Your the one left without a chair now. What do you have to say now

  14. Avataaar/Circle Created with python_avatars Buddha Only says:

    It is not stupid at all. I will move some of my funds to virtual lands soon. This is future. Don’t be late to buy sone virtual land ⏰ Metaverse is coming

  15. Avataaar/Circle Created with python_avatars MrLasVegas․com says:

    Aging like wine 🍷 🚀🚀🚀

  16. Avataaar/Circle Created with python_avatars モデリーマン says:

    u could have 100x if you have bought at this time. lol

  17. Avataaar/Circle Created with python_avatars Ola Handelsmann says:

    well, this didnt age well…

  18. Avataaar/Circle Created with python_avatars Rahul Maurya says:

    Oh and I thought CSGO skins were the most expensive virtual weapon skins.

  19. Avataaar/Circle Created with python_avatars Jacob Shin says:

    what about the cryptokitty cat that sold for $170,000?

  20. Avataaar/Circle Created with python_avatars Octavio Esquivel says:

    worst thing money can buy? I won a 250 dollars profit in like 3 hours by purchasing coins of that game.

  21. Avataaar/Circle Created with python_avatars Joe Jia says:

    if you say this is crazy then bitcoin is crazy and every cryptocurrency and everything related.

  22. Avataaar/Circle Created with python_avatars Styleby Cre says:

    What about fundrise. I thought virtual realestate meant you only invested in a companies building and earn income once they sale or begin to make money off the building.

  23. Avataaar/Circle Created with python_avatars Thane's Business says:

    A decade ago I owned land in second life. I currently own a portfolio of websites, I am crap at monetization but I am working on it.

  24. Avataaar/Circle Created with python_avatars CLUTCH_AND STICK says:

    LoL.. Second Life has this beat by nearly 20 years. While I'm not really active there any more i maintain a virtual loft that costs me about $1 USD/ $250 Linden Dollars per week. Why? To shoot my YouTube videos IF I feel like it.

    I used to build houses with things like working elevators, blinds and security. I sold a few for $6 USD.

    SL has thousands of people developing real content daily that has even made Mainland look pretty good but i bet they'd rather be selling SIMS for $200,000 USD

  25. Avataaar/Circle Created with python_avatars Vampire_born_in_2006 says:

    sold my clothes from dota 2 that dropped for free, bought another game and have $60 on steam, can buy 1 new or a couple of older games. Was years of great investment of time playing dota

  26. Avataaar/Circle Created with python_avatars Previn Coin says:

    Decentraland is not a game, it is a destination for ideas. Gold is also scarce therefore it has no value.

  27. Avataaar/Circle Created with python_avatars Dan Rosenthal says:

    Where did you get your T-Rex head from?

  28. Avataaar/Circle Created with python_avatars Nic Hoffman says:

    Sometimes I feel bad for that "like" button. Grahams viewers are always so rough with it….

  29. Avataaar/Circle Created with python_avatars tom lopez says:

    the video is boring sorry disliked

  30. Avataaar/Circle Created with python_avatars TP Productions says:

    This says other people came just make the same game idea like its that simple.. It takes a team to do something like this and a lot of funding. also if other companies were to do it it wouldnt hurt the comunity it would only help

  31. Avataaar/Circle Created with python_avatars Emmett Brewer says:

    I can see this being a market in the future but the tech isn't there yet

  32. Avataaar/Circle Created with python_avatars Bernice C. Thomas says:

    REALLY…I GUESS IF IT DOESN'T MAKE SENSE IT REALLY CAN MAKE DOLLARS.

  33. Avataaar/Circle Created with python_avatars Mitchell. says:

    But Graham you could buy virtual fish aquariums!

  34. Avataaar/Circle Created with python_avatars sir georgio alastrata says:

    Why dont people just play Minecraft VR lmaooo

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.