When most investors think of passive income in cryptocurrencies, the first thing that comes to mind is stakingHowever, there are many different ways to generate passive income, especially if you are active in a virtual environment. metaverse world like Decentraland (mana 1.30%)In early December, Decentraland officially introduced a new passive income option that could appeal to Metaverse users. It’s a virtual property rental for Digital Land owners.
So, if you already own Digital Land in the Decentraland virtual world, you can rent it to others who want to set up a short-term presence in the metaverse for things like festivals, product launches, or community events. Now This is an interesting concept because it works similarly to real-world real estate rentals, which have always been a popular source of passive income. So is this metaverse-inspired passive income opportunity right for you?
high risk
in the meantime Buy virtual land in the metaverse It sounds interesting, but the hurdles to entry are also high. If you’ve never explored a metaverse world like Decentraland, you need to understand how these worlds work and how they differ from traditional role-playing video games. You’ll also need to familiarize yourself with land prices in the metaverse (ranging from a few thousand dollars to over a million dollars). Next, you’ll need to familiarize yourself with the Decentraland map, which has over 90,000 parcels of land.
Rental income will be in the form of Decentraland tokens, as all transactions on Decentraland will be made using the in-game governance token, MANA. Given the price fluctuations possible with Metaverse Crypto, this carries with it a certain amount of risk and volatility. Falling land prices and a potential currency devaluation.
In late 2021, with the Metaverse all the rage, Facebook rebranded itself to: meta platform (meta 0.49%)With celebrities and major brands announcing their involvement in the Metaverse, the future seemed limitless. Paris Hilton to headline first-ever Metaverse Festival with over 80 artists Inside Decentraland. But as we move into 2022, things are even worse for the Decentraland token, which has lost 88% in price this year.
high reward
However, this high risk comes with potentially high rewards. Experts such as consulting giant McKinsey, for example, continue to predict that the Metaverse will turn him into a nearly $1 trillion market opportunity within a few years. Indeed, there is a lot of interest in what the metaverse is and how to get involved in it. More than 90% of consumers are interested in the Metaverse, according to the latest survey by Capgemini, a multinational information technology services and consulting firm headquartered in Paris.
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In my opinion, passive income opportunities in Decentraland look like this:Join early while people still understand the Metaverse, buy land while it’s relatively cheap, then change your land For what brands and creative influencers want to use for one-off events. With any luck, he may find a brand, artist, musician or small business willing to rent a plot of land in Decentraland for a brand launch, festival or conference.
Is it worth renting a virtual property?
For now, this new ‘passive’ income opportunity seems too ‘active’ to attract the attention of casual investors. And it certainly takes a lot of up-front investment before it becomes viable for most people new to cryptocurrencies. The average land price in Decentraland today is $2,380.
Unless you are already an active user within Decentraland and have set up a social network, I doubt this will be a regular source of passive income. Virtual property rentals differ from real world rentals where he can lock in rent for 12 months at a time. Even if a DJ, fashion designer, and streetwear brand knocks down your digital door to rent from you in his Decentraland, it sounds like you’re going to have to work really hard to generate ongoing rental income.
Why not bet only on MANA?
it might be easier instead stake Your Decentraland tokens to earn passive income. For example, you can now earn 3% staking rewards in Decentraland tokens via several popular cryptocurrency platforms. This may not sound like a big deal, but it’s easy and passive.
Therefore, for now, I am working on virtual property rentals as a passive source of income. While Decentraland is certainly an interesting cryptocurrency to consider as a rebound candidate for 2023, it would take more time within the metaverse to recommend Decentraland tokens as a purchase or consider renting crypto assets as a viable source of passives. I have to check a lot of activities. income.
Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platform CEO Mark Zuckerberg, is a member of the Motley Fool’s board of directors. Dominic Basto I do not have any positions in any of the stocks mentioned. The Motley Fool has a position on and endorses the Meta Platform. The Motley Fool Disclosure policy.
