How to become a millionaire by investing in virtual economies
This is not clickbait! Although, I know me saying that ultimately just makes this seem more clickbaity, but I can assure you, it’s not. Just as we have a real estate millionaires today, we will have virtual real estate millionaires of tomorrow and I’m going to show you how you can be one of them, but you’ve got to keep up, this space moves fast so I strongly recommend you follow me on all my socials! linktr.ee/Chad2P0
Shameless plug, I know, I’m sorry, but you may thank me latter, when you’ve managed to say up to date with this super trend that’s set to explode.
What are NFTs?
A non-fungible token is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable.
NFTs — More than just a JPG or GIF:
NFTs can be used to represent a multitude of different things. For artists that may be a JPG, GIF or an MP3 for music artists, but they can also be used to represent a house deed, graduation certificate, ticket, virtual land plot, digital creature or even an in game weapon.
The evidence:
I know for a fact you can become a millionaire by investing in these virtual economies, because I’ve heard stories of people doing it. With a $30k investment, one investor was able to make a 1 million dollar NFT portfolio in just one year. Now I’m not going to say it will only take you a year, but the reality is it could.
This is one of yesterday’s headlines:
If Kieran Warwick (the man named in the article above) had invested $11,000, he’d have $1,012,000.00 today and that would be in less than a year, so that goes to show you it can happen.
How do you identify these opportunities?
Investing in the metaverse is very similar to investing in physical real estate. Before investing, these are some of the questions you may want to ask yourself:
- “How popular will this metaverse be?”
This is based largely off speculation, but if you’ve been exposed to triple A games, like Fortnite, in the past, you’ll have a good idea as to whether or not it could be viable. - “What’s the community like?”
Is there an active bubbling community, where daily active users (DAU) are increasing? - “Who is building around me?”
What’s better than having Mark Cuban as your neighbour in the physical world, having him as a neighbour in the virtual world, cause there is no doubt he is going to want to invite his billionaire to build big things around his metaverse plots.
- “What new developments are coming to this ecosystem?”
Are the introducing land play, like Axie Infinity, where you’ll be able to do things with your land? - “What utility does my land have?”
What can you do with your land, and does the size or rarity of the plot change what utility it has? - “How many land plots are available?”
If they mint 10,000 land plots, then all of a sudden there’s a million players, you can see how scarce these land plots become - “What are the play to earn mechanics like?”
Play to earn is a relatively new gaming model, made possible thanks to Blockchain technology. In developing countries, these play to earn games present a huge opportunity because individuals can make more money playing these virtual games than they could working in their own country.
How do you monetise these offerings?
Leasing: You can buy plots or creatures and lease them out to make an income. There may be people that are unable to afford the upfront costs associated with these investments, or they they may just want to experience the game and understand it before jumping in. Therefore, as an owner of these assets you can charge these types of individuals to borrow your assets. I’ve heard examples where individuals are making 10s of thousands of dollars per month leasing their Axies in Axie Infinity.
Playing: Being a play to earn model, you can literally make money playing these games. I’ve heard instances where people are making $25 per Axie, per day in the Metaverse game Axie Infinity.
Breeding: This may sound like a crazy concept, but you can actually breed some of these virtual creatures in these games to make more virtual creatures. The number of times you can breed and the number of offspring you can have varies depending on the metaverse, but with Zed Run, as an example, you can have your stallion or colt service 3 mares or fillies a month, you you can have your mare or filly serviced once a month.
Pay to play: Using Zed Run as another example, users have to pay to enter races, and those fees are used for the race price pool. As another example, The Sandbox metaverse will be a host to a number of different games that users may have to play to use. Owners of land plots can lease their land to game creators that could monetise their land with games, or the owner of the land could do this themselves.
Flipping: And finally, another stream of income could come from flipping. This is all based on identifying opportunities, buying low and selling high. Simple enough, but can be challenging to execute.
Upcoming games and metaverses that could be huge:
These are upcoming games and metaverses that I believe could have huge potential and I’m really excited to explore and invest in these ecosystems when they come out.
Illuvium: An open-world RPG adventure game built on the Ethereum Blockchain. Journey across a vast and varied landscape on your quest to hunt and capture deity-like creatures called Illuvials. The creator of Illuvium, Kieran Warwick, hinted that there will also be an opportunity to own Illuvium plots, so if this is anything like Axie Infinity, investing in these virtual plots could prove to be very lucrative.
DeRace: DeRace is a complete NFT horse racing ecosystem where you can participate in horse races, breed NFT horses with unique characteristics, build your own NFT hippodrome and make profit while doing it. They’ll also have NFT saddles and horse shoes that you can purchase and equip your horse with to enhance its performance. Additionally, there will be advertising revenue models available to owners of hippodromes, and the team is targeting the online casino market to acquire punters.
Realm: Create and explore your one personal microverses. With these microverses you can create and explore your own personal metaverse. The appearance of these metaverses can be customized to be voxel, real life or low poly look, which makes Realm a very flexible ecosystem. Additionally, Realm will be producing Blockchain pets. There will be a genesis offering of Blockchain pets, and these will be the rarest available in the Realm metaverse.
I hope you’ve enjoyed reading about my blog post!
➡️ Feel free to follow me on my other socials for interesting crypto projects I’m investing into and to stay up to date on my strategies: linktr.ee/Chad2P0 🐦📸🎧📝
Disclaimer: This blog post was inspired by my own opinions, observations and experiences. I am not a licensed financial advisor and this is not financial advice. You should not buy, sell, or invest in any asset based on what I say. You should know that investing carries extreme risks. You could lose your entire investment. This is not trading advice and I am in no way liable for any losses incurred. Always do your own research.
