Is NFT still worth the investment and attention?
NFT can represent works of art, collectibles, souvenirs and personal data. It can also be a game character, crypto identity, certificate, etc. So if NFT is worth the investment, we refer to the article.
The coding case is relatively simple. When we tokenize commodities (such as currency or gold), they can be traded around the clock through limitless and smooth transactions. Like the underlying objects, these tokens are interchangeable. A gold bar can be replaced by another gold bar of the same mass; Bitcoins can be replaced by bitcoins.
However, heterogeneous goods are irreplaceable, unique and limited in quantity. They can also be represented by non-fungible tokens (NFTs) in the blockchain.
NFT use cases
Heterogeneous tokens are generally not divisible. However, there are several projects under development that are partially owned. Split Ownership (F-NFT) is an investable retail investment of $ 20 million in art value, invested by the NFT of $ 1,000 on behalf of the work.
By using smart contracts, creators can open up new sources of income, such as: B. License Fees. For example, smart contracts for tokenized works of art could force a certain percentage of sales to be sent to the original address. Artists, musicians, and other creators may find that royalties are paid on a regular basis in addition to initial sales.
Just as small trades increase the liquidity of the commodities market, a similar situation can be expected in the rare commodity market. Feel it: the size of the global collector’s market is $ 370 billion. The global video game market is $ 151 billion; the art market is $ 64 billion; The market for crypto identities is $ 13.7 billion.
Can NFTs Boost Funding?
Will we see the world’s poor invest in Picasso? It cannot appear on a large scale. While technically possible, the poor may not be able to “save”. While Bitcoin is a highly liquid and inflation reducing asset that can be helpful, acquiring a partial ownership of Picasso may not be everyone’s first choice. .
But that doesn’t mean it can’t happen.
There are several case studies that show one way of creating value and benefit. An art teacher in Africa can invest in high quality paintings on a small scale and keep an NFT (Value Added) as a legacy for their children. Competing video game players can monetize unlocked rare characters by selling NFTs to fans in Asia.
Is NFT Still in the Spotlight?
NFT brings advanced security and certification to the market. In doing business, trust is essential and blockchain – independent of third parties – can increase transactions and trading activity in risky markets.
A blockchain can always capture the originality of collections; locate the article; create an operational and legal chain of custody; and document the sequence of control, ownership, and transfer of the shard. Depending on how the creator designs the application of the intended use case, a chain can also record a history of heterogeneous assets; Add timestamps for key events; and listing of auction prices and other verification information.
When it comes to crypto artwork, while NFTs can be held as proof of ownership, it is of course very easy to copy artwork. Some may wonder what the point of owning is as anyone can download “pictures” for free.
However, in a verifiable social network, “ownership” is undeniable, and even if there are copies, the value of that NFT is unique. The reality is that people value authenticity.
Especially with famous or controversial pieces, there will always be collectors who are willing to pay the price. Is it worth investing in NFT? However, few would deny that the NFT sector is currently overheating and that we can expect continued volatility in the sector over the next few months.
However, we believe that NFT will play an increasingly important role in the transition to a crypto environment where trust, verifiability and the sovereignty of the cryptocurrency are central.
Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice. Your money, the choice is yours.