Karl Motey on Is NFT Technology Transforming Creativity?
NFT stands for “nonfungible token.” As part of a recent wave in cryptocurrency, developers can code sets of tokens, and their finite design ascribes value as currency. Attached to this digital identity is a visual: a piece of art. And in the same way, collectors look for rare prints; buyers are increasingly searching for NFT artworks.
With the proper certification, can be purchased and sold in the crypto market and have presented innovative ways to invest and trade online. Detractors view them as a volatile option, but that has not prevented NFTs from gaining popularity. The recent surge has developers on the search for new opportunities to create revenue.
The Story Behind The Art
Although intangible by nature and an unmistakable question mark over their value, NFTs have cultivated hype and luxury status.
The reason NFTs have more of an understandable footprint is their artistic representation. Images, designs, and GIFs are some of the most prominent forms of tokens and are the digital goods attached to NFTs. Like investment in any other stock, the gold rush is enacted in the hopes of future profit, and many believe that growth is in the cards for NFTs.
The Future Is Bright
If the performance of other cryptocurrency trends is anything worth following, Bitcoin is a prime example. In March 2018, Bitcoin was worth about $8,200; as of March 2022, it reached $47,000. Investors who feel they missed the Bitcoin boat are now motivated to purchase NFTs.
Is The NFT Hype Justified?
Inflated value is a genuine concern, and NFTs are being monitored now. We must wait a while longer before we can accurately predict whether NFTs will succeed or not.
Moreover, many aspects of continue to be unregulated, and it’s no secret that cryptocurrencies are used to commit fraud on the dark web. Until legislation and protective measures are put in place, there will be an element of volatility for NFTs. Nevertheless, the value is more significant than just the monetary worth. NFT creators profit by taking a chunk on future trades of the NFT.
Over time innovators will think of ways to use tokens as corporate or consumer resources, and we’ll begin to understand NFTs and their potential in the market. As digital ownership gains prominence and crypto become more established, NFTs could prove promising.
Originally published at https://karlmotey.info on June 21, 2022.
