....
"Collective belief in the value of virtual real estate is already growing."
Website domain names are another virtual asset, just a combination of letters that exist only online. Dozens of domain names have sold for more than $10 million apiece. (The most expensive domain name sale was for carinsurance.com, which sold for $49.7 million.) Yet, we have made peace with the fact that certain domain names trade for high prices because they are considered to be more “rare.”
So when a friend recently asked me, “Why would I pay real money for fake land?,” I explained that digital real estate is like a combination of NFT art and domain names. That’s because the marginal cost to produce a digital parcel of land is almost nothing, and its value is more closely related to its perceived scarcity than to its actual utility.
....
read more (coindesk)
"Collective belief in the value of virtual real estate is already growing."
Website domain names are another virtual asset, just a combination of letters that exist only online. Dozens of domain names have sold for more than $10 million apiece. (The most expensive domain name sale was for carinsurance.com, which sold for $49.7 million.) Yet, we have made peace with the fact that certain domain names trade for high prices because they are considered to be more “rare.”
So when a friend recently asked me, “Why would I pay real money for fake land?,” I explained that digital real estate is like a combination of NFT art and domain names. That’s because the marginal cost to produce a digital parcel of land is almost nothing, and its value is more closely related to its perceived scarcity than to its actual utility.
....
read more (coindesk)
