Mark Cuban believes that investing in virtual real estate is the “dumbest” idea ever.

A billionaire investor, Mark Cuban, feels that acquiring digital estate in the metaverse may not be the best use of one’s money. Consider investigating other investing alternatives. Although Cuban is well-known for his excitement for cryptocurrencies, he has referred to the acquisition of virtual real estate in the metaverse as “the dumbest s— ever.” Despite being an investor in Yuga Labs, Cuban has referred to the purchase of virtual real estate as a “dumb” notion. Yuga Labs has notable NFT collections, such as Bored Ape Yacht Club, which has sold digital property parcels.

He said, “It was a large sum of money for them, but it was not based on utility.” The land is a scarce resource in the real world, which is why real estate is so costly. There is no assurance, however, that this shortage will stay faithful in the metaverse. During the interview, Cuban said, “Within these virtual universes, you can create an infinite number of volumes.”

The explosive rise and eventual fall of digital property. In the preceding year, people spent millions of dollars on digital real estate, causing a “virtual land rush” on metaverse sites. According to MetaMetric Solutions, overall revenues on the four most significant platforms in 2021 will amount to $501 million. In other situations, the selling price of the virtual property was equivalent to that of a conventional home. The Wall Street Journal reports that Republic Realm, an investment business that owns and develops virtual real estate, just spent $4.3 million on a digital property inside The Sandbox, one of the powerful metaverse platforms. Republic Realm is also active in virtual real estate development.

Also read: Blockchain Technology in real estate: Rebuilding the sector digitally

In 2021, “P-Ape,” an NFT collector, paid $450,000 for a virtual tract in The Sandbox near Snoop Dogg’s digital mansion. On the other hand, the speculative housing bubble seems to have burst. According to WeMeta, the average selling price of a piece of virtual property on the metaverse platform Decentraland on August 7 was $14,385.27. The data shows a fall of over 61% compared to November 2021, when the average selling price hit an all-time high of $37,238.68. Due to the volatility of both the metaverse and cryptocurrency markets, financial experts advise only investing money you are ready to lose. There is no promise that your investment will provide a beneficial return.