Should I Invest in NFT’s?
Updated on January 20, 2023 | by Joseph Williams
NFT art refers to digital artworks sold online and typically paid for using cryptocurrencies such as Ether (or ETH, Ethereum’s currency).
Because NFT artworks are 100 percent unique, and because their unique identification is encoded into the blockchain, they can fetch enormous sums of money, as the art world—and collector market in general—revolves around scarcity.
So if you ask yourself; is there another way of making money online besides playing in a Canadian online casino where you can win big by joining the many poker matches, taking a seat at the blackjack table, or spinning the roulette wheel for huge fortunes? I would say yes!
Why Should I Invest in an NFT?
Also, Read This: 5 Factors to Understand Before Buying Cryptocurrency
NFT’s have shown to be a successful kind of crypto investment for a variety of reasons, including the following:
- -NFT’s create a crypto investment platform through which physical goods such as art pieces can be tokenized, hence preventing duplication and confining ownership to the creator. This, in turn, produces scarcity and, as a result, value for the artwork.
- Tokenizing assets provide investors with greater liquidity over their assets when they require it. As an example, suppose a virtual landowner decides to rent out his or her virtual territory to advertising or influencers for a price while still owning the land. In this situation, the virtual land still belongs to the owner, but a portion of it is paid as rent.
- NFT’s have the ability to help the land sector grow and thrive. In real estate, for example, owning and controlling virtual lands offers you the power to select what you want to do with your land. You have the option of renting it out or establishing a stable and secure business for advertising or online commerce.
The Future of NFT
For a long time, the idea of merging NFT’s with e-commerce platforms has been generating headlines in the crypto industry. Experts believe that because of their digital nature and extended shelf life, NFT’s can play a key role in the world of e-commerce and high-end products markets.
Because NFT’s are digital in nature, they do not involve the inconveniences or costs associated with product transportation (even though there is a certain minting and hosting fee that needs to be paid to the marketplace showcasing the NFT’s as collections).Luxury brands have a lot of options since they may possibly offer exclusive and limited NFTs without having to worry about counterfeits because the metadata on the token cannot be modified by users.
If you decide to invest in NFT’s, don’t buy something because you believe it will be worth millions in the future. That is unlikely to happen if no one is willing to pay a million dollars for it. Purchase something you enjoy and want to collect like a collectible that you want to own. As if it were a work of art on your home’s wall. You don’t normally acquire things with the goal of turning them into million-dollar assets in the future, do you? Apply the same logic here when purchasing an NFT.