Can NFT change the future standard for trading and investing?
3 min readTable of Contents
NFTs or nonfungible tokens are unique, unique items to which you can buy rights through blockchain technology. One of the most popular examples of using NFT is the purchase of business cards. NFTs are usually digital, which makes it very easy for creators to market their work. The most expensive work sold to date was created by Beeple and was worth $ 69 million.
Physical things will go digital
It’s no secret that postage stamps, baseball cards, and even Pokémon cards have always been a big market, and like everything else, these things are likely to go digital. Keep in mind that as an NFT, you can sell basically anything, including drawings, music, artificial intelligence, and websites.
The NFT market is relatively new, so it is very immature and there is quite a bit of waste, such as random and worthless stickers or tweets from completely unknown people. One of the companies in which Tim Drapper has invested plans to auction a real apartment like the NFT, and others already want to use the NFT to trade companies’ equity.
The demand for NFT has always been there
The NFT-like concepts we are seeing now have existed for many years, although they have traditionally been used in much more centralized forms. And even before blockchain’s smart contracts, we never knew about the uniqueness of owning digital objects, such as digital sports cards, works of art, etc.
In some cases, it was a matter of having a password or simply accepting that other virtual things would be stolen from you. You can now easily have proof of ownership. Yes, it is still unusual to verify this, but as with any new technology, the NFT is still a tool mainly for technology and cryptocurrency enthusiasts.
We should not forget that NFTs have existed since 2012, but 2021 was a year of growth as a wave of cryptocurrencies erupted, and various influencers spoke about the NFT, such as Austin Evans, who has over 5 million subscribers on YouTube, and major brands such as Taco Bell, began offering to sell their own NFT. Some of this was due to marketing, hype and the desire to be “woke”, but much of the popularity of these assets is due to technology.
Investing and collecting digital age
NFTs allow people to invest in assets that were not previously available, or in the case of digital art or sports cards, which were much less portable. As with physical objects, the intangible aspects of “digital rarity” affect its value. So whether the NFT has celebrity support, a brand guarantee, or a high-potential basketball sports card, it can all affect the price of the NFT, which means it’s a good investment.
Of course, as with any other investment, buying an NFT without a thorough check is risky and even simply stupid. There are many overvalued assets on the NFT market and only some of them will be victorious in the future. It is probably more sensible to choose the approach of venture capital investors and not to invest anything above 10% of their portfolio in this new form of assets.
Conclusion
As the NFT grows, we will encounter more and more forms of this new type of asset. However, everything will take time. Do you hold any NFT?