While the underlying trend of NFTs and real estate is not new, the past few months have seen a surge in real estate themed NFTs. This has been spurred by the launch of Next Earth, the only blockchain-based virtual land ownership platform located on an exact copy of Earth.
The growing popularity of these digital land assets has led to many successful sales, as users have access to iconic properties ranging from the Playboy Mansion to the White House.
What is a digital collectible?
A digital collection (or NFT) is an asset that exists as data on a blockchain. It can be an image, video, music, or any other file type. The distinction between tangible NFTs and non-tangible NFTs is often blurred – many items have both physical and virtual parts.
For example, one can create NFTs to verify ownership of real shoes, merging the physical and virtual worlds. Next Earth NFTs represent virtual tiles of the Earth, similarly merging the meta-space with the physical plane.
The appeal of real estate-themed NFTs is their connection to real-life property. While rare artifacts also have sentimental value to collectors, they are not directly tied to any particular location.
Real estate assets, such as apartments or houses, are unique entities with specific geographic coordinates; they exist in space and time. As such, they are naturally represented on the blockchain through NFT smart contracts.
Why are real estate collectibles valuable?
NFT has been around since 2013, but it wasn’t until 2021 that the first NFT platform dedicated to virtual real estate was created. The Next Earth.
A few months ago, you probably hadn’t heard of “art cryptocurrency” or “real estate cryptocurrency.” Today, these terms are commonplace in the world of cryptocurrencies (and blockchain technology more broadly). Why has there been such a sudden growth in the creation of these digital collectibles? The answer is simple: demand.
One of the main reasons why real estate themed digital collectibles have become so popular is their scarcity. Unlike regular JPGs, which anyone can freely use and copy, these rare NFT collections are available in limited quantities.
Additionally, these virtual properties are tied to real-world locations (such as iconic buildings or landmarks), which when combined with the NFT itself, adds further value. For example, an individual could purchase an NFT of a famous property like the Empire State Building.
The Future of Real Estate Collectibles
As NFTs continue to gain mainstream adoption, the digital collectibles market will likely continue to grow and diversify. With new platforms joining the space every month, consumers have more options than ever to invest in digital art.
As digital art and culture continues to grow, so will the potential for NFT collectibles. The current surge in real estate themed NFTs can be attributed to a number of factors.
First, NFT collectors and investors alike are increasingly interested in digital art forms inspired by real-world phenomena. Digital collectibles have become increasingly popular as people seek new ways to diversify their portfolios and invest in unique assets.
Secondly, with the launch of platforms such as Next Earth, investing in digital real estate has never been simpler and easier. These platforms not only allow users to create virtual worlds, but also to develop virtual items within those worlds.
As real estate becomes an increasingly attractive asset class for institutional investors, it’s no surprise that digital artists are beginning to explore this nascent space as well.
The sky is the limit, and Next Earth has many exciting developments underway to enhance the real estate collectibles market, including the ability to create pixel art on the blockchain and turn your virtual real estate into one-of-a-kind land art.