6 Things You Should Know Before Investing In NFTs
The Cryptocurrency world can be a bit intimidating and complex to apprehend; the more you dive into this space, there is always a new asset creating a shock wave. One such buzz that is growing like a rising star in the Cryptocurrency spectrum are NFTs — Non-fungible tokens. NFTs are digital artwork assets sold on marketplaces and making millions of dollars. The highlight of the news was when Beeple sold the most expensive NFT at around $69 million, and this is just the tip of the NFTs iceberg.
NFTs have been around since 2016, but recently it has become the trending topic of conversation on various platforms. On the other hand, digital content creators are receiving recognition like never before, whereas many celebrities and brands are also participating in this booming industry.
NFTs are relatively new in the Crypto market, but given their hype, it seems that they are here to stay for a pretty good time. And just like other investment approaches, this too requires thorough background research and study. The NFTs craze in the market can be overwhelming since there are tons of information available on various platforms of Crypto, Blockchain, Finance, Investments, etc. But before you start to research, planning, and strategizing on NFTs investment, here are a few things you should consider.
In this blog, we are going to discuss 6 Things You Should Know Before Investing In NFTs:
1. Effect on the Climate
Dealing with technology means you are also participating in the environmental effects. A single piece of Crypto artwork is responsible for over tons of greenhouse gas emissions. NFTs model works on Blockchain; thus the mining process creates a major impact on the environment. Blockchain technology continues to face criticism and backlash for its enormous electricity consumption. Popular NFT platform — Ethereum, creates a large amount of carbon footprint. For instance, a blockchain transaction through Ethereum causes as much electricity consumption as the entire country of Libya, and this is just not the case with one platform but almost all of them. Thus, Blockchain use has a harmful impact on environmental conditions, but if you are determined to participate in NFT, you could look for environmentally conscious NFTs platforms.
Also Read, Everything You Need To Know About NFT
2. The Digital Ware
A physical piece of art is susceptible to wear over time; for instance, a painting with age continues to deteriorate because of environmental factors. It may fade, distort, lose flexibility, turn brittle, and so forth. Hence, the reason why art galleries or museums spend millions of dollars to create an effective environment for the paintings to live. Although this may not be the case for digital artwork, such as images, GIFs, videos, music, however, it thus has concerns over long-run implications such as pixelation, skipping content, fading images, technological effect on audio such as tempo, bass, background, and so forth.