What motivates investors to pay millions of dollars for land that does not exist in the real world?

In the metaverse, people (as avatars) will be able to socialize, work, shop, play, and much more in this online universe of interconnected 3D worlds. In addition, owning a well-used space increases value to a real estate investment.


According to a recent Grayscale survey, the metaverse's expected turnover in the near future will be around $1 trillion.
Metaverse

Furthermore, according to a recent Grayscale survey, the metaverse's expected turnover in the near future will be around $1 trillion. People can make money from their land in a variety of ways.


The possibility for profit from virtual real estate at this level increases the value of a virtual land, causing an investor to spend millions for it.


Scarcity, utility, and consumption are 3 characteristics that influence appreciation.


Scarcity: Users purchase virtual land parcels, which are restricted in number (value due to scarcity).


Utility: How it will be used is determined by the small number of landowners. Or if it will simply be a financial investment (utility/scarcity valuation).


Consumption: The third element has to do with how virtual world users will consume content provided by landowners (valuation through consumption).