Technology is creating a brave new world. Many tech-savvy Rhode Island residents are acquiring digital assets, and owning property in a metaverse could be a great investment. However, there are a few drawbacks associated with owning digital estates that investors should be on the lookout for.
Scammers
While technology brings us amazing digital worlds, it’s also a popular place for criminals. News stories frequently break about digital thieves robbing people of their cryptocurrencies, NFTs and digital properties. Therefore, one of the major risks of owning digital property involves dealing with these scammers.
Restrictions from platform owners
The concept of physical real estate having a set location isn’t hard to understand. However, it can a bit more complicated when discussing digital real estate because these homes require a platform to exist. If this platform’s operator takes the platform down for whatever reason or blocks the owner’s entry, it creates a lot of potential problems for property owners.
Strict digital contracts
No real estate purchase is complete without paperwork. To modernize signing a bunch of documents, many digital real estate sales now utilize smart contracts. While smart contracts provide a clear record of ownership, they’re not as flexible as traditional contracts. After finalizing a smart contract, there’s no way to make changes to it. Making matters worse, smart contracts being in their infancy could create many legal-related future headaches for digital property owners.
Owning digital real estate has a few drawbacks worth thinking about. Some people are enthusiastically buying up digital properties in a decentralized world. For others, a lack of authority and regulations makes digital real estate a risky investment.