NFTs – A New Generation Of Assets – Up until a few years ago the only major sources of investment and generating returns was the stock market and the expensive yet lucrative real estate market. But times are different now, a new generation of assets have arrived.
The first form of asset introduced to replace money in the future is cryptocurrency. To read about cryptocurrency check out our article “click here” which gives the reader an idea about cryptocurrency and its future.
Blockchain technology has revolutionized asset ownership and has made possible the introduction of a new form of asset that has a different value and can be purchased using popular cryptocurrencies like Ethereum.
This asset has been named as a ‘Non-fungible token’ or NFT for short. These units of data are stored on a blockchain in a form of a digital ledger that can be sold or traded. Digital media such as photographs, videos, and audio may be connected with several types of NFT data units.
It all started when the first NFT was created by an artist by the name of Kevin Mccoy in May 2014. It was named ‘Quantum’. It was a pixelated image of an octagon filled with circles, arcs, and other shapes which shared the same center, with larger shapes surrounding the smaller ones and covered in fluorescent hues.
Since then the popularity of NFTs is only rising, and in the last two/three years it has become a global phenomenon as celebrities and businessmen/women buy and promote them. The most popular forms of NFTs are created by artists and are images that anyone can purchase to become the only owner of that particular NFT design.
One of the most popular websites to create, sell or buy NFTs is Opensea.io where one can create unique NFTs and also purchase a single or a collection of NFTs by linking their cryptocurrencies wallet like Coinbase, Metamask, etc on the website.
DISCLAIMER: As cryptocurrencies are considered volatile assets, NFTs as well can lead to loss of wealth or may not be considered a real asset as duplicates can be sold through fraudulent means. Many entrepreneurs in the technology space are not entirely on the same page as NFTs. While some have completely adopted NFTs and created their own NFT companies, others are speculating that the NFT boom is just a bubble that will burst, leading people to lose their wealth.
Investing in NFTs might be fun and easy for the wealthy population who can bear the risk or have a particular NFT they want to own forever and never sell, so they can pay any amount for it. But for the general public who might love the idea but may not have the financial capacity and the risk appetite.
Even though newly created NFTs can be purchased with a small investment, no one knows the future of these NFTs as they can either rise in value as other popular NFTs or just not generate any wealth at all. The most popular NFTs depicting an APE have had many similar iterations and have sold for a lot of money. Many speculators feel that APE NFTs have peaked and it’s time to create something else.
No matter what the sentiment is for NFTs, good or bad, one should only buy it as an asset to keep and not as a means to make quick returns, and one should justify and take the risk on their terms before investing.