NFTS: ARE THEY REALLY THE FUTURE?

The NFT craze is here, but for how long will it last? These cryptographics are the latest innovation in the crypto world, and everybody is talking about them. Non Fungible Tokens have been bought and sold for a lot of money, especially over the last twelve months, which is why so many investors and digital art lovers are hopping on the bandwagon. 

Trying to get your head around the latest gold rush can prove challenging. Even the word ‘fungible’ can confuse many people. Don’t worry, the name isn’t as complex as you first imagined, as it pretty much means non-replaceable or interchangeable. For example, there are several copies of the world’s most famous piece of art, the Mona Lisa, but there is only one original, which is similar to NFTs. Each Non Fungible Token is unique in its own way.

Although collecting NFTs is a new concept, for thousands of years people have been collecting artwork and other objects. Rare and special objects have been selling for a lot of cash, so why should digital artwork be any different. Well, traditional artwork can be counterfeited, and fake artwork and other fake physical collector’s items have damaged the industry. It is impossible to copy NFTs. Although most digital artists shouldn’t have any issues producing the same image, each NFT is given unique metadata and an identification code so that people can tell the difference between each one. These modern digital pieces of art are bought and sold by people on a blockchain, which will be able to verify that each image is an original. This is one of the reasons why people involved with NFTs believe it has a promising future. 

It’s not surprising that there are a lot of people skeptical when it comes to NFTs. There have been several reports of scammers being involved in the industry, and even some of the most popular NFT collections have known scammers working behind the scenes.

Although there has been a lot of negativity surrounding the NFT craze, let’s first take a look at why NFTs is a positive thing:

• A new type of art: A lot of artists have had a tough ride during these unprecedented times, but with a new art type emerging, NFTs have given digital and non-digital artists the chance to gain recognition. Whether it’s a still image or an animated video, NFTs might be the future of art. It gives artists the opportunity to create, display, and sell their work.
• Smart contracts: Each NFT is a smart contract, which is one hundred percent programmable. In the traditional art industry, artists struggled to get compensation for their work. Often the artist was only given a small percentage for selling their work, but they can generate a lot more revenue from NFTs.
• Collectors: People who invest in art are often looking for new ways to start a collection and support artists. Collectors can display their collection in a TV frame. This gives them a chance to show off their different pieces and their creative side. If you appreciate the modern era we live in, then investing in an NFT collection might be something worth looking at. Who knows, you might even create your own online digital museum someday!
• You can find out the history of the NFT: You will be able to access lots of information with an NFT, including who originally owned it, how many buyers owned the NFT, where it originated from, etc. The NFT will have the history information stored on the Blockchain so you can find out details about the previous owners.  

With the amount of money some people are making from trading NFTs, it’s not surprising that there are lots of folks looking to generate a healthy profit from buying and selling these modern pieces of art. With stories of people receiving a free NFT and later selling it for $100,000 it seems like an opportunity not to miss out on. It’s a feasible opportunity for investors which has generated a lot of excitement. There are lots of websites dedicated to NFTs, such as this site  from NFT Club.

Before you spend your entire savings on an NFT collection, you must first realize that it’s not all plain sailing. The are several risks when investing in NFTs, such as:

• There must be a demand: If there is no demand for an NFT, then you can’t expect it to sell for much. Trading digital commodities are still in its infancy, so if you are selling an NFT, you might not have enough people wanting to buy it, or the buyers might be reluctant to pay the money you want to sell it for. 
• Laws: Don’t assume that trading NFTs is legal in every country throughout the world. Some governments have a ban on trading NFTs.
• The great unknown: There is still a lot of uncertainty surrounding the industry, which can scare investors off the idea. 

The biggest concern about NFTs is the impact it is having on our environment. Most NFTs are on the Ethereum blockchain, which many believe is outdated. It is struggling to adapt to the volume of NFTs currently on the blockchain, and with more added to it every single day, experts are worried about the damage it is doing to our planet. A lot of energy is needed to keep these NFTs on a blockchain, which is very worrying, especially with the effects of global warming becoming more evident. A lot of artists refuse to get involved in NFTs because they worry about what it is doing to our planet. 

Last year, the NBA and the NBA Players Association signed a deal with Draper Labs to create a platform that allowed basketball enthusiasts and investors the opportunity to trade cards and NFTs. Investing in these iconic moments in basketball has become extremely popular, and they have sold over $200 million worth of NFTs since they launched in 2020. The platform is known as NBA Top Shot, and it has provided collectors with a new channel to buy and sell unique basketball NFTs.

However, it seems like NBA Top Shot is only the beginning. Draper Labs have signed a similar contract with the NFL and the NFL Players Association, so you can expect to see an NFT football platform arriving soon. The world’s most popular sport, soccer, looks to be heading in the same direction. The English Premier League side, Manchester City, has just released their own NFT collection. In the near future, don’t be surprised if you see other sports looking to make financial gain from NFTs. 

Although we are at the stone age of buying and selling digital commodities, NFT seems to have a promising future ahead. Although it might sound strange selling or buying a digital piece of art for large sums of money, is there really a lot of difference between selling NFTs and traditional art? There are lots of online marketplaces where you can find NFTs for sales, such as Enjin Marketplace and OpenSea, so why not take a look to see if there is anything that interests you. Who knows, you might find something that you can sell down the line to generate a nice profit.