Are NFTs the next big investment or a bubble waiting to burst?
In recent times, Non-Fungible Tokens, more commonly known as NFTs, have taken the world by storm. This revolutionary technology has made a significant impact across various industries and professions, ranging from visual art to music, and has turned the traditional concept of ownership and value on its head. With the help of NFTs, artists and creators have been able to monetize their digital creations in an unprecedented way, which has led to an increase in profitability. This incredible development has sparked a lot of talk about the future of NFTs. Many experts are predicting that the technology will continue to evolve and expand beyond the art world, opening up opportunities for new use-cases and industries. Though the future is uncertain, one thing is clear – the impact of NFTs on the art world is only just the beginning.
In recent years, we have witnessed an unprecedented shift in the art world where traditional notions of collectibles have been replaced with new and innovative forms that merge technology and creativity in unparalleled ways. In fact, the concept of a digital image file, such as a GIF or JPEG, being considered as a valuable art asset seemed far-fetched and unimaginable just a few years ago. However, with the emergence of NFTs (non-fungible tokens), what was once impossible has now become a reality. These unique digital tokens have transformed the world of crypto investments and have established a thriving market on the internet with a staggering worth of over 49 billion dollars in 2021 alone. As more and more tech investors discover the immense potential of NFTs, the profits associated with them continue to soar to unprecedented heights, making them a lucrative investment opportunity for anyone seeking to diversify their portfolio.
NFTs in the future
This year has seen an incredible amount of money exchanged, and this trend is set to continue with huge sums pouring in. While some speculate that NFTs may be a bubble waiting to burst, whether they are or not, they are set to cause significant ripples across multiple industries and markets globally. This is due to the astronomical increase in NFT trading volume in Q3 of 2021, which reached a staggering $10.67 billion–an increase of over 700% from the previous quarter–according to DappRader. In fact, Morning Consult conducted a poll that revealed that half of physical collectors are either “very” or “somewhat” interested in collecting NFTs in the future. Furthermore, NFTs are fueling and redefining the creator economy in a big way, making it easier for creators to monetize directly from their followers via decentralized marketplaces such as OpenSea and Solsea on the Ethereum blockchain. By decentralizing the internet, blockchain technology has liberated creators from the policies imposed by brands, agencies, and advertisers, granting them the power to monetize their work and followers in a more lucrative way. Moreover, NFTs offer creators ownership over their creations, which provides them with more leverage to monetize their work and following.
