Metaverse: You can’t walk on this land or build a house, but plots

Johnny McCamley has spent nearly £5,000 on plots of land.

But he can’t physically walk on this land – and he can’t live there or build a house on it.

That’s because the 23-year-old’s investment is in the metaverse, meaning his land is completely virtual and exists solely within a digital world.

Mr McCamley, from Belfast, is one of many people who have decided to buy virtual property in the metaverse.

Last year, transactions of virtual land reached $350m (£267m) in The Sandbox, the largest platform for digital property, according to a report by the Centre for Finance, Technology and Entrepreneurship.

A further $110m (£84.2m) worth of transactions were made in Decentraland, the second-largest metaverse platform.

What is the metaverse?

The metaverse is not a single digital space. It’s a network of virtual reality worlds, set up by companies and platforms, where users can interact, play games, attend events and buy land.

One better-known metaverse is Horizon Worlds. It has been created by Facebook, which has now changed its name to Meta as the tech giant shifts its focus to virtual spaces.

Other brands have also announced their own digital realms.

Manchester City are planning to build the first metaverse football stadium in partnership with Sony.

Mr McCamley, the chief executive of CryptoClear, bought his plot in The Sandbox last October. He said: “There are casinos in the metaverse, there’s also museums, but there’s also events such as podcasts and also conferences as well that I’ve actually attended. So, the best way to look at it is, it’s taking the real world and really digitising it way beyond the likes of Zoom.”

Why are people buying virtual property?

For Mr McCamley, the chance to stake a claim in this imaginary world was an opportunity not to be missed, despite market uncertainty and price volatility making it a risky investment.

“It’s like any new investment, any new asset class. When I got into Bitcoin when it was $300 I was told it was extremely risky, the same with Ether at $4. I think getting a piece of land in Decentraland for $4,000 is an absolute bargain,” he said.

He intends to hold his purchase for 10 years: “I believe the metaverse will mature in around a decade and I’ll think about selling the land when that time comes.”

Landowners can also use their virtual spaces to design experiences for others to enjoy.

“The community-owned pieces of land, they’re my favourite. A really, really good example is, I believe it’s a ‘gecko beach’ that somebody has done which, as you can guess, is a beach full of geckos,” said Mr McCamley.