NFTs are digital assets with a huge array of purposes. Not only are they an investment vehicle but they can also be used to purchase virtual land and power decentralized gaming finance projects.
As digital assets, they have only recently entered the mainstream, but they have been around for some time. Despite the attention on crypto, NFTs are something that is firmly here to stay.
If you’ve wondered whether this is a passing trend, here are some of the reasons why NFTs are not going away anytime soon.
The coming of the digital world
The metaverse is something that has progressed leaps and bounds in previous years. It is no longer a concept of science fiction. There are countless metaverse platforms independent of one another that have achieved varying degrees of success.
The full digitalization of the world means NFTs will not fade but will becoming increasingly more important as digital assets.
NFTs are the assets themselves, with crypto serving as the primary currency of the metaverse. Crucially, 23% of American millennials own NFTs, meaning that we are witnessing a divide that will ultimately influence future generations.
Often dismissed as nothing more than an art fad, NFTs have gained tremendous notoriety and popularity. Although the initial craze has somewhat worn off, the utility is what ensures they will not fade away.
More and more big names are climbing aboard, such as the Bored Ape Yacht Club, and many of these projects are backed by venture capitalists and investment banks.
NFTs have continued to grow in popularity, and it will only be a matter of time before the NFT marketplace becomes an established part of mainstream society.
The new, futuristic economy
Cryptocurrency has been widely acknowledged as the currency of the digital world. But what can you buy with this currency?
NFTs are the vehicle that denotes ownership of digital assets. It could be virtual fashion, artwork or even real estate. The metaverse is set to be an entirely new universe that will eventually replace the internet, according to Meta founder Mark Zuckerberg.
The technology behind NFTs will not go anywhere because there is a real need for them to make metaverse projects successful.
We have already seen examples, such as the Axie Infinity GameFi project, and the revolutionary impact of NFTs on gaming. In other words, NFTs are pivotal to the vision of creating a virtual world that is all its own.
Huge investment potential
NFTs have a massive amount of profit potential. Some NFTs have been sold for millions of dollars. While it’s true that not every NFT is going to be worth something, this is no different from the parade of failed crypto projects that have arisen over the years.
Maintaining a degree of exposure to NFTs is a great way of diversifying your portfolio and potentially nailing a jackpot.
Flourishing art industry
The industry that has experienced the biggest uptick in success from the coming of NFTs is the creative industry. Independent artists have flourished because they have found a way to increase the value of their work.
These independent artists are not just random people on the internet. The founder of the Silk Road, Ross Ulbricht, launched an NFT collection, with the proceeds being donated to push forward the campaign for US prison reform.
Choosing an NFT for sale enables consumers and artists to join together in the creation of new artworks and the promotion of new projects.
It will take time
NFTs are certainly here to stay. The problem this technology has at the moment is educating the mainstream populace of its existence, how this asset works and where to buy NFT collections.
The initial spike in interest was a passing fad. However, we can learn from the history of Bitcoin that this type of interest will ebb and flow. NFTs will continue to develop in the background regardless. With much of the attention still on cryptocurrency, it should come as no surprise that NFTs have left the limelight somewhat.
The development and popularity of NFTs will almost certainly run in parallel to the development of the metaverse. As more and more people begin to explore and experience what these virtual worlds have to offer, NFTs will develop in step.
NFTs have often been derided, but what history tells us is that cryptocurrency experienced the same growing pains.
Its high level of utility and its use as an investment vehicle means that there’s no direct competitor and there is an established need for NFTs to succeed.
What do you think will be the future of NFTs?