While cryptocurrency is hitting the top charts, it’s safe to say that NFTs are following the path, because let’s be real, people are earning thousands of dollars on the stupidest things and won’t even get it – so, is it worth it? Should you invest your hard-earned money in NFT? We have tapped on all these areas with these articles, so let’s have a look! Or you can check, www.chesworkshop.org/bitiq/.
The Creation Of NFTs
To begin with, the NFTs started on the Ethereum blockchain, particularly because it was developed on the collective network of smart contracts. For those who don’t know, smart contracts are the platforms that allow users to create valuable assets through an interconnected and verified ledger of ownership and communication. It wouldn’t be wrong to say that the ETH blockchain was designed to change the dynamics of digital assets and it has achieved that.
Coming down to the NFTs, they gained traction when two digital artists came together to create Crypto Punks, which was launched for the public in 2017. Crypto Punks are basically crisp and high-resolution pictures and it was sold for $7.58 million at the beginning of 2021. However, there have been many NFT transactions that grabbed thousands of dollars, if not millions.
Why You Must Invest In NFTs?
Following are the reasons you must invest in NTFs:
Higher Value Growth
Just like other investments, there is always potential for growth in NFTs, especially in the overall value of the investment. To illustrate, Crypto Punks was bought at $2,127 in 2017, and in March 2021, the owner bagged $7.58 million. Having said that, NFT has a higher potential for value growth and we are here for it.
Being an owner of a product doesn’t seem like anything but NFTs are based on unique products, and by investing in them, you are becoming an owner of something unique. What we like about this link is that unique products tend to gain more value over the course of time, leading to better value and profit.
NFTs are based on blockchain technology and it’s safe to say that there’s a lot of excitement around this technology. In fact, blockchain technology has the potential to change the paradigms of consumer behavior, which is something great for people who are purchasing NFTs for investment purposes. In simpler words, you will become a part of the tech revolution just by spending a few dollars on an NFT project.
It is challenging to maintain records of ownership and authenticity, particularly for high-value assets. However, there are no such issues with NFT because they exist on blockchain technology and that provides a clear record of the NFT. Consequently, it means that your digital investment won’t be prone to theft and cannot be questioned for authenticity.
While it’s great at what it does already, it’s possible that it will evolve to become a promising and secure way of managing and controlling sensitive records and data.
Things To Consider Before Investing In NFTs
It’s needless to say that NFTs look like a shiny and bright arena to invest in but it’s not a clear road. This is because one needs to be wary of certain aspects before investing in NFTs, including;
- First of all, you must understand that it is not possible to convert physical art into a digital form. So, if you are fond of having a one-on-one experience with the artwork or your purchases, NFT isn’t for you.
- NFTs can be challenging at times and they are also confusing to understand. Contrary to usual belief, you aren’t purchasing the copyright of the product if you are investing in a part. Even more, the public can always check out the art and copy and paste it on social media, and show off the products that you’ve paid thousands of dollars for.
- This is one of the primary concerns as it seems like NFT transactions are not suitable for the environment because they release CO2 in the environment and processing these tokens requires a ton of energy, which is not sustainable.
To summarize, NFTs have a bright future but there is an evident need for standardization.