Mark Cuban Calls This Kind Of Investment The "Dumbest S**t Ever'

Mark Cuban, the billionaire investor and owner of the Dallas Mavericks, recently expressed a negative opinion about a specific type of real estate.

In an interview with the Altcoin Daily YouTube channel, Cuban referred to people buying real estate on metaverse platforms like the Sandbox and Decentraland as "the dumbest s*** ever."

Cuban added that while concepts in metaverse real estate may be successful after a community is formed around them, they are useless when based on traditional real estate approaches before the concept is proven. The billionaire’s sentiments come as the increasing hype surrounding the digital universe seems to be fading away.

The "Shark Tank" star owns physical properties though, including a mansion in Dallas that he bought for $13 million in 1999 and a $19 million mansion in Laguna Beach, California, that he purchased in 2018.

But owning real estate is not just for the wealthy, as new companies have made it possible for individual investors to get involved with the housing market for as little as $100. Here’s how to get started by picking up individual shares of rental properties to earn passive income and build long-term wealth.

For the unaware, metaverse platforms like Sandbox allow investors to buy land as an NFT, which can be developed with virtual buildings or experiences, or resold on secondary markets like the NFT exchange OpenSea.

However, according to OpenSea, Sandbox land is down 81.82% from its January 2022 peak. Trading volume at its peak was $9.5 million, but only $202,986 at the time of writing.

Virtual land may be a viable investment for brands like Adidas and Nike looking to build social experiences, but it's still more of a risky crypto asset than it is anything similar to investing in physical real estate.

According to Cuban, who is still a vocal supporter of crypto and other Web3 technologies, the metaverse is still more talk than anything.

Although metaverse real estate is not doing well at the moment, the idea of the metaverse as an emerging virtual world where people can shop, hang out with others and play is still intriguing to many.

Companies like Sandbox and Decentraland sell digital plots of land to users who can buy, sell or lease the space, or use it to build virtual structures.

In theory, what gives metaverse land value is the same two principles of physical real estate: scarcity and location. However, that may not apply to metaverse land as you can't artificially introduce scarcity.

See more from Benzinga:

• First Jeff Bezos, Now Elon Musk Making A Play In The Single-Family Housing Market
• 'We Are Entering The Best Real Estate Market Opportunity Since 2008': Why This Billionaire Investor Is Aggressively Buying Income-Producing Properties

Photo courtesy of Joe Seer on Shutterstock