While we have seen so many people making moves and securing investments in the stock and crypto market, a new and relatively esoteric asset class has arisen in NFTs. While it does not exactly require hours of reading chart patterns and applying tools for technical analysis to know what and how to buy, it still poses a lot of difficulty to potential investors as to what it is, how its value is based, and why they should actually put their money into this asset class. With this situation in mind, we have put together this piece to do justice to why we feel NFTs are worth your time and your money.
The very first step in a valid NFT journey is having a good grasp of what it is. Simply put, NFTs are tokenized true versions of pretty much anything. NFT means Non-Fungible Token, meaning it is one of a kind. Thus, once you secure an NFT, you have ownership of something nobody else in the world has. With this in mind, what exactly are the reasons anyone should invest in NFTs?
POTENTIAL: For starters, NFTs are incredibly versatile. You could make an NFT of ABSOLUTELY ANYTHING, even yourself (though that is rather extreme). This opens up the possibility of NFTs coming into use in various sectors. Although its use is more common in art and media in the current NFT market, its usage is currently being extended to making digital copies of real-life physical goods, and even land. With an asset class this diverse, the possibilities of making profits from there are seemingly limitless.
COLLECTIBLE NATURE: NFTs are collectables because of their unique nature. It’s an easier, more convenient way of acquiring and owning stuff. As it is common knowledge that NFTs are one of a kind, that means you can hold on to an NFT for some time and resell in the future. Just like art from classical artists, or limited edition vintage gadgets and vehicles, nice NFTs also appreciate in value with time. So you could scout for a really good NFT, pay a token to buy, then sell later for a higher price. Its decentralized and digital marketplace also makes it all the more resellable, with the possibility of putting on auction from one part of the world and finding a buyer from any other part.
CREATOR REWARD SYSTEM: If you are a creator yourself, then you could also consider delving into NFTs. NFTs eliminate middlemen and distributors, allowing people like artists to connect directly with their customers and get adequately rewarded for their work. Furthermore, NFTs can be designed in a way that further resales of that token will generate a particular percentage of the price to the creator, an entitlement out of which he cannot be cheated. So it’s also feasible for you to mint NFTs and auction them to make directly for yourself.
SECURITY: Finally, NFTs are secure, designed in such a way as to last for ages. So you do not have to worry about your asset getting destroyed, stolen, duplicated, or pirated. It is always original, indestructible, and safe, despite being at your fingertips at your wish.
With the above reasons, it is obvious that NFTs do make a very viable investment consideration. However, that is not to say every NFT purchase or sale will make you loads of profit or is entirely risk-free. Interest in individual NFTs are based on aesthetics, and as such, are highly subjective. Investors could apply a measure of fundamental analysis to non-fungible tokens, just to inform their investments the more. For example, NFTs from more popular figures, or more iconic items are likelier to be of higher value. That’s why the NFT of Twitter CEO, Jack Dorsey’s first tweet could easily bag $2.9 million in the market; and chances are it would go for much higher later in the future if the buyer were to resell.
