If you already invested in the financial market, you know that real estate is a great investment. Being secure and valuable, real estate has always been one of the most interesting assets that you can buy. Today, we are going to review a company which has a different and interesting take on real estate. Its name is EtherEstates.
What Is EtherEstates?
EtherEstates is a blockchain company which has created a “game” in which you can own real estate. The thing is, you do not actually own any real estate, you only own an electronic asset that generates money. The real estate part is no more than a part of the game.
You will be able to own real estate landmarks like the Empire State Building and the Eiffel Tower. Every transaction will be made via smart contracts on the Ethereum blockchain and, as soon as you buy some real estate property, you will be able to set the new price. The idea of the game is to keep buying real estate and sell it for a higher price.
Because the idea of the game is to collect as many properties as possible, the company believes that its product will be valorized and this will enable the creation of a game in which you can sell your properties to get more money.
How EtherEstates Collectible Eth Real Estate Crypto Game Works
Basically, EtherEstates is a game in which you buy virtual real estate. While you are not really buying real estate properties, you will get “rent” for the properties that you own. The rent comes from the profit generated when a player sells the property, so this money goes to a pool and all the owners of a certain real estate virtual asset get the money.
This means that if you sell the property for a higher price, it will be more rentable later. The trick is that you can use this to increase the value of the properties that you own. Between 5% to 10% of the profit of every sale goes to the rent pool.
How To Invest In EtherEstates?
To play the game, you have to download the Metamask extension for Google Chrome. You will use Ethereum to pay for the properties. After you have already installed Metamask, you can go to the sales page and look for a real estate property that you can afford. As you buy it, you can sell it to another player whenever you want.
When you own a real estate property, you get a certain value called rent (as we explained above). You can collect your rent at any time and it will go directly for your Ethereum wallet. The more real estate that you have, the more rent that you will collect.
You do not need to own a real estate property fully, you can only own a part of it. By owning only a share of the asset, you will be able to get profit equivalent from that share.
Is EtherEstates a good investment? It is somewhat hard to be sure of that. The idea of this game definitely has potential. Not only it uses collectibles to gamify assets, the more you spend money to buy them, the more rent you will receive for your assets over time. This is a good way to inflate the prices of the assets and make them more valuable.
On the other hand, it is just a game, not a real investment in real property. You are basically buying nothing, just a virtual asset that says you have something. It is not even a cryptocurrency on the blockchain or a share of a company, you are paying for a share of an asset inside a game which can be canceled at any moment. Because of this, it might be the best idea of all time to invest.
This is a complicated situation, so it is best if you take your time and think well before you decide if you are going to invest in EtherEstates or not. We have to tell you that this is a somewhat risky investment, but if you want to invest in it, it can be a good asset if you are lucky, so analyzing the situation well before buying is a very good idea.