Virtual worlds and the reality behind them
Virtual worlds may sound like science fiction, but the ability to immerse yourself in another world is here. It is much deeper and broader than donning VR (virtual reality) goggles and playing video games.
All the big tech companies are racing to be the go-to platform as the Metaverse becomes a part of our lives. The Metaverse is an extension of the internet that supports an online, always-on, often 3D environment, using virtual or augmented reality headsets or just a computer.
The Zoom conference call was born
A Zoom meeting could be considered a simplistic dawning of the new age of a virtual reality experience, but the Metaverse takes it much further. Today, utilizing a VR headset, your avatar (a digital representation of you) can be a part of a meeting sitting at a conference table in a conference room.
You can experience it now
In the movie “Ready Player One,” the population lives in their Metaverse to escape the drudgery of their world. In the film, one motivation for being in the Metaverse is the hope of amassing riches by finding an “Easter egg” hidden in the world by its founder. The concept is not far off of what the Metaverse can become.
The real-world similarities open up many opportunities. As I mentioned, there are a handful of platforms where you can go and experience virtual reality. Several are focused on gaming, but the big tech companies are betting on much more.
Buy a virtual parcel and build a virtual building
You can purchase a virtual parcel of land today for around $15,000, build a home or a building and use it in some fashion. Celebrities are buying and building today, hoping that you will pay to tour their virtual home or watch them perform in a virtual concert.
Cryptocurrency is the medium of exchange for buying and selling in the Metaverse. As the major players are moving to be the first to create the go-to platform, entrepreneurs will be close behind capitalizing on this potential new form of investing. As a real estate investor, consider purchasing a “parcel” in the hot business district, building a virtual shopping mall, and leasing space to luxury retailers.
Today’s reality behind the Metaverse
Though this new technology is moving fast towards adoption, currently, the ecosystem does not offer the speed, efficiency, and scale needed.
The growth of cloud computing created its sector in commercial real estate termed hyperscale developments. The big tech players in cloud computing are pushing the boundaries of large buildings.
Considering the massive million-plus square feet shipping and e-commerce logistic centers used by the e-commerce giants, Facebook (now Meta Platforms), Google, Microsoft, and Amazon Web Services are approaching two million square foot data centers.
A single data center for cloud computing can cost $1.5 billion in dedicated infrastructure and require up to 30 megawatts of electricity for its servers. Keep in mind that one megawatt of electricity is enough to power 750 homes--a single data center can easily surpass the needs of 75,000 homes. A single cloud computing provider can have dozens of data centers worldwide.
Computing power requires significant resources, and the Metaverse of tomorrow will require exponentially more. The only thing holding us back from living in a virtual world is computing power. I give it five years; China already has quantum computers in operation that are one million times faster.
Burt M. Polson is the CEO of ACRESinfo.com, a commercial real estate brokerage company, and CEO of StoneMarkerInvestments.com, a private equity real estate fund. Call him at (707) 254-8000 or email burt@acresinfo.com and burt@stonemarkerinvestments.com.