Investors across the globe are pouring millions of dollars into land that only exists within video games. According to The Wall Street Journal, The market for digital real estate has exploded because of “a pandemic-fueled climb in electronic games and investor excitement around cryptocurrencies.” As a result, many see NFTs as a way to enter the booming esports industry.
NFTs are non-fungible tokens. They work on blockchains, similarly to Bitcoin. However, the difference between the two is each bitcoin can be exchanged for another bitcoin, but one NFT cannot be exchanged for an identical NFT.
NFTs are used to mark ownership in a piece of digital media. This can apply to art, collectibles, and (in this case) video games. Investors are now using NFTs to purchase land in the gaming world.
On March 18th, Contemporary artist Krista Kim sold an NFT-minted digital home for 288 ether (valued at $500,000, at the time of purchase). This is just one of the hundreds of moves happening across the globe in the realm of digital real estate.