The market may be in for a price bubble.
Last week's Otherdeed metaverse land sale was a huge success, with so many users rushing to buy virtual metaverse real estate plots that Bored Ape creator Yuga Labs was able to mint that the entire ethereum block became temporarily unusable.
Fortune reported this week that investors paid at least $5,800 per NFT land plot and up to $6,000 in gas fees, based on how many users are active.
The gamble may not work out. According to the finance outlet, those same investors would lose about $1,700 per sale if they put their real estate on the market a week after the drop.
If there is a universal rule that we are pretty sure is still true, it is gravity. What goes up has to come down. The US housing market bubble might soon bust, meaning you won't see drag-out fights over buying a house, with buyers still losing a sale because somebody else offered an extra $50,000 in cash.
There are booms and busts in the market. Even billionaire Warren Buffet won't touch with a five-foot pole despite holding physical real estate.
Will the prices of NFTs recover? It is possible in the short to medium term, but the real question is whether any of these assets will hold any value in the long term.
We are a bit confused by the Vatican's NFT plans.
All Rights Reserved © 2024
