The speculative bubble in digital real estate is an estimate that has emerged based on industry trends.

The latest and greatest is the game featuring “digital real estate”. I'm afraid this will create a bubble in the digital realm where gamers, developers, and entrepreneurs will lose a lot of money.

If you're developing or investing in a game or app, and hoping to use that wave to hit millions of dollars, it's a good idea to learn the basics of rooting carefully before hitting the south wall.

Digital real estate is not a new phenomenon. History has shown that when the products of the “digital land” and the physical realm are similar, we will see digital land speculation, digital real estate issues and even all digital. industry. Pain - -

This means that happy growth will end when scalpers take their digital assets away from people who really want to gamble or do something and take control of their community.

Take the example of Axie Infinity.

"In the Pokémon-inspired universe, anyone can earn tokens by playing skills and contributing to the ecosystem. Players can fight, collect, climb, and build kingdoms for their enemies."

Currently, the game focuses on buying and selling rare animals called “Axies,” but future plans will focus on buying and selling rare digital animals.

The game is still in the early stages of development, but you can now purchase land.

Let's ignore the fact that Axie Infinity is completely blockchain-based and only focuses on real-world analysis.

Axie Land offers a variety of in-game benefits, including the right to collect rents that can be converted into real money.

Unlike the virtual animals in this game, the ground equipment is fixed. Concretely, it should be noted that the next steps of the game will encourage people to create new interactions, but this activity is only open to those who have land.

I can tell exactly what will happen here (because it happens multiple times) - scientists will buy and keep all the land.

There are so few assets that anyone who wants it for free will go up in estimate, those who want it will keep it, and those who really want to use the land will have to pay quite a bit for it.

This will reduce the economics of the whole game. The severity of the situation for Axie will depend on the decision they make in the coming months.

But I can be clear. More important than the "digital country" in the game, a bigger problem will arise.

We know this for two reasons. Firstly, this is what is happening in the real world of business and secondly, we have seen this situation many times before in the digital world.

Ultima Online, Final Fantasy XIV, EVE Online ... these virtual worlds with internal marketing are all a part of it, and they all suffer from a lack of imagination land.

One of them is that the crisis was solved thanks to the wise financier who pulled a page from the book of Henry George, a public figure of the 19th century.

Digital House Crisis hauv Massively Multiplayer Online Games

As long as digital housing exists, there will be digital housing issues due to the lack of digital real estate.

When I was playing Ultima Online in 1990, even though I had the money to build a house, I couldn't find any land to build it. Homelessness is still rampant. All of these are similar to the details of real estate violence.

TimSt requested that the interior of the building be larger than the exterior, which makes the ground more usable and allows for the construction of more houses.

Uriah_Heep said TimSt moved to a less populated area, but the answer was no one wanted to move from Ultima World to a rural area.

It is all very different. The digital earth does not have to be like the physical earth.

Digital Real Estate Vs. physical housing

Real estate, whether digital or physical, has two parts: the land and the improvement. For example, the buildings you construct, the crops and orchards you plant, and the landfill on the beach make the ground wet.

Improvement is a kind of capital, but land is not. The main difference in the physical world is that you can generate a lot of capital but not a lot of land. It is a free gift of nature.

Any problems caused by this device.

The creators of the virtual world are free to set their own rules, but the closer the digital world is to the physical, the greater the damage caused by emotion.

1. Digital space should not be limited

There is no body law against creating more digital land, of course platforms can be chosen to deal with the scarcity of land (or other assets). Finally, the “insufficiency” of digital real estate depends on business confidence.

The blockchain does not guarantee that the earth cannot be created.

As a result, the scarcity of digital land has always been indistinguishable and deliberate by platform owners. However, even if it is personal, it will make the quote work as long as the number is kept.

2. Digital space No need to follow physics

In the real world, every homeowner tells you three things that affect the value of a property: "Location, location, location."

We recommend that the interior is not larger than the exterior. If possible, staying in Times Square would be cheaper.

However, in the digital world, there are more and larger portals internally than externally, allowing the digital world to cross the boundaries of physical territory. However, only if you choose to do so.

3. Digital Land is not important

Everything you do in the physical world depends on accessing the realm, whether it be to work, eat, or sleep. The right to do so in a place owned by the owner (or himself, if you're lucky). In reality.

The digital world will not be like that.

In many virtual worlds digital “homelessness” is possible, and you can still be healthy, productive and wealthy without a virtual home. Stop if you want to sleep.

But for some reason, many virtual worlds choose “digital countries” as an integral part of their products.

This happens when you need to visit a place to do something of interest, whether it is a social enterprise, a business enterprise, a fundraiser, or an understanding of the purpose. .

The questions then become a visit to this particular digital land.

If every precious resource were given to every player who wanted to use or access them, there wouldn't be enough.

However, if a player is in a field that the other players cannot, it will be like a physical field.

Although the terrain has its advantages in the game, it is enough to cause unrest on the ground, so you can imagine how bad it can be when the main game is locked. land ownership.

4. The poorest soils are the epidemic

The lack of digital real estate gives a good picture of what we see in the real world. If I understand the real economy and the context of the 30-year history of digital land speculation, I predict that the digital land will be everywhere soon.

less

Provide appropriate benefits / or.

It benefits from its proximity to public places and / or "public works".

In other words, the more soil there is, the bigger the soil problem.

The most obvious signs of a land crisis are fixed housing, speculation on large lots, rising prices and unpredictable rents, which are limiting user development.

For most MMOs, this is the only giveaway. The house is "good for the owner". However, if you are homeless you can still have a lot of fun in the game.

Ultima and FFXIV never solved this problem for EVE, the problem arises because land management is important to any experiment. A game like Axie needs to learn the basics of the story before it's too late.

Genesis of the network

Ultima Online (UO, Online Genesis) was first released in 1997 and was the first game to translate the MMO genre.

The house is very special. From a small museum to a large castle, make sure you have enough space for the plan of the house you want, then find and place free space there.

After a while, the space was almost exhausted. If you don't come home often, your house may be demolished.

But soil speculators are not discouraged. Having vacant land with your home is a great investment. Because the cost that players are willing to pay for the field far exceeds the cost of the owner and the property.

So why don't players go straight to lesser resources? That's a very good question. Too many players will make the experience less appealing, and at that point you won't be able to cross the servers, so moving means sharing all of your friends, experience, expertise, and gear.

Densely populated land which remains the most precious land.

It's like the real world. The total value of 7.6 million square kilometers of land in the United States is approximately 23 trillion US dollars, but 198,000 square kilometers of urban land is worth 19 trillion US dollars.

The value of the city's land depends on whether it is the most inhabited.

This is partly why financial investors call the agglomeration effect. If you are in the heart of a thriving civilization, you can easily find hunters, bakers and candles, which are worthy of their own in the middle of the forest. a thing.

Real-world storylines also apply to Ultima, and Final Fantasy XIV (FFXIV) struggles with the same issues.

The main attraction of Maison FFXIV lies in the "soft" quality of the events, the aesthetics, the role play and the self-expression. They also have a "room", but they are in very little demand and not subject to speculation. There is no need to do in the world of sports, so if you want to sleep, get out.

As we have seen, when you have a 'digital lands' game, you benefit from 1) inadequate resources, 2) neighbors and valuable or reasonable businesses, 3) neighbors and businesses. Prepare for soil bubbles and speculative crises.

Now let's take a look at the game that was famous for problem-solving in 2003.

ev en ligne

Economist Ramin Shokrizade described it all in Gamasutra's 2013 article "How to Predict the Extent of Depression Using EVE Online."

Let me tell the opening details.

“In 2003, I helped start a new business for EVE Online. The biggest problem was the factory as the players were very cheap to buy and manage. When I got permission to enter the commercial version of the game, all major manufacturers were phased out at that time.

A week after EVE released, I sent a report that these weaknesses in the design industry were threatening and fixing the game.

My solution is to increase the rent for this factory so that only those who are involved in the operation of this factory are ready to own it.

The idea is to create the "hot potato" effect if you don't want to use it to create a lot of products. But the result of this projection is increased wealth stratification, lower financial competition, higher prices for consumers and the dream of real estate. "

Ramin said the EVE "government" should only pay "used or lost" prices at a price that could not protect plants with energy (insufficient demand for production, space needed to benefit from it). . And this value must be high enough to get the best value from the estimate.

It is in fact a kind of "property tax". The particularity of property taxes is that they like to reduce land prices by driving players out of the market.

Property taxes (also known as “property taxes” or “property taxes”) should not interfere with property taxes. “Ownership” is land and property, so the added value of the two is taxed together.

Property taxes are just property taxes, and it is a scarce commodity that cannot be manufactured by anyone and is sought after by everyone. It is not a tax based on the area of ​​land available, but it is a tax based on the value of the land.

As a result, property taxes on parking lots in downtown San Francisco are higher than on farms in Nevada.

What is the incentive for property owners if enough property taxes apply? Well, they agree to sell the land or create something useful for it. This will force the scientists to bring land to the market and there will be no competition from the scientists, which will lead to higher land prices.

As the rate decreases, the value of the property tax rate also decreases. But if speculators try to raise land prices again, taxes will rise proportionately and the bubble will only collapse.

But aren't scientists just skipping property taxes and raising prices? Evidence has shown that this is not always the case. Unlike sales and tax revenues, property VAT has no weight, and the evidence tries to prove it.

warehouse

Using VAT digital real estate to solve digital real estate issues is easy to understand, but the details depend on a variety of game-specific applications and relationships.

However, we have to keep in mind that the digital realm is not the physical realm, so there are often other ways to solve this problem.

Remember that there is a digital world where you can create multiple lands and without physical restrictions. Just write the earth like a dollar bill. This is to solve the problem of the equipment.

However, this solution will not work if you design your game in such a way that the site determines the value of the land. Based).

Another option would be to reduce the value of the land and fix the issue as needed, but players will need to add some functionality.

After all, if you're asked to create insufficient land, the TVA land is the way to go.

Now back to games like Axie, which deserve special attention because digital housing is the most important and destructive feature of digital land issues.

I hope everyone can learn the tricks they need to avoid losing a lot of money and burning the confidence of players from generations past.

Land grabbing dilemma

If you use the 'digital land grab' model before you sell your game, you need to be prepared for the uncertainty of capturing your own customers early or knocking down all new ground users without serfs and then shutting down. Development. .

We are seeing clear signs of this tension in Axie.

In order to prove that he is making the decision to sell land for real money, the land must be "hard" in the game. A digital land problem is not only to be avoided, but will occur, if that significant land is stabilized.

If the game is successful and complete, sometimes all the necessary lands will be available and newcomers will not be able to do anything valid for an inferior monopoly.

Selling your land in stages can prevent this from happening soon, but only with an immediate delay. Depending on the size of the region, new players may not be able to play at all.

This business plan can be a great way to generate pre-orders, but it's not constant growth for a business that wants to make thousands of dollars. . Why invest in a project that will stagnate?

I predict that many manufacturers who have seen early completion but have been negatively impacted by consumer growth will try different levels of "general dilution".

They are careful not to change the soil in order to keep their promise to make it scarce, but intelligently change the need or the importance of the soil to play the game of satisfying those who need it without any problem for the government. . You can buy and play this damn Farmer game.

But the real problem with digital land expropriation is that it's more than one species. At least it looks like Axie Infinity is a real game and World 2 is pure fantasy.

It is a simple virtual representation of an entire world divided into small pieces, which players can buy, hold and sell. That's all.

According to the trailer, the first step is to "run to the ground" and no one knows the second step, but the third step is obviously "profit"!

Real estate speculation has doomed builders

If the digital domain is less resource-intensive and the value of manufacturing and its value increases as it enters a populated area or "utility", then only primary-purpose users of it can acquire the digital domain. terrain by creating digital terrains. himself.

It is a shame to tell you that a place like Axie will inspire people to capture and preserve precious lands for diversity forever.

Don't pay too much rent to creative, well-designed clients who want to make great products.

To ensure gamers get the most out of their digital space, pay property taxes, but not facilities and buildings.

Another factor to consider is why soil fertility has increased in the physical and digital world. That is, who created this value? The answer is community.

In a safe and friendly environment in the real world, with a grocery store around the corner, within walking distance of schools and libraries. , and public beauties and plumbing will make community lands more productive and productive.

Given that the location of many games on the ground is "play for profit", the player first creates a capture of value based on the value of the land, the platform must therefore capture the land rent which will restrict the flow to people. in need. It only interferes with production.

The value of community production is then shared equally between those who make a profit, that is to say all the group games.

Of course, payments are really open to the world of compliance, more risk and risk, so everyone who comes into this site is encouraged to use speed, be careful, and do a lot of passion.

The scarcity of land is not inevitable, but it is a phenomenon of market intelligence.

In the digital world, this can be accomplished by meeting the multiple needs of each client (increasing), reducing cumbersome and cumbersome outcomes (reducing demand), or “used or lost” (rent). It affects speculators.

Rents in the real world are too high. Let's not repeat the same mistakes in the digital world.