The future of NFT investments and its potential to secure the future digital economy have many doubts. While some investors ponder if NFTs are worth the money or the hype, many other investors question the mechanism of the token to explode in the distant future.
The Non-refundable tokens (NFT) remain a digital asset, purchased via blockchain technology; creators relay their respective works into the digital market. Over time, crypto investors grossly see the token as a platform to foster the digital economy because it possesses several benefits for decentralised finance platforms cemented on crypto.
Different between NFTs and other cryptocurrencies
Although NFT may be seen as similar to cryptocurrencies like bitcoin or ethereum because of the digital nature, the distinction is very clear. To begin with, cryptocurrencies like bitcoin, others are fungible, just like physical money. What this means is simply that they can be exchanged for one another and are usually equivalent in worth. NFT, on the other hand, is non-fungible as implied. Each of the tokens possesses a unique code which makes the trading of the tokens impossible.
Furthermore, NFTs become minted via tangible and intangible digital objects, like music, videos, GIFs, arts, video games, etc. Even though it remains primarily attached to work on the ethereum blockchain, NFTs get support from other blockchains. This makes it possible for creators to monetize their goods on the platform. However, one major advantage of the NFT contents remains that it is devoid of censorship. Its server remains intact all the time owing to the absence of any central person controlling the market. Although applications using NFTs may shut down, all data or records still remain intact on the blockchain.
Securing the future economy with NFT Investments
The potential in NFT investments to secure the future remains very feasible. The marketplace possesses the catalyst capable of growing and sustaining a robust economy for the digital community. As time goes on, the attractiveness of NFT will lure many into embracing and marketing their goods on the platform.
As of today, NFT investments pulled over $40 billion through art, GIFs, designs, in-game items, domains deals. This has, encouraged creators to subscribe to the innovation and make wealth by putting their artworks into the market. By virtue of this, there will be a huge increase in financial inclusion and buoyancy across the globe.
In view of the prevalent indices, one can assert that the digital economy will continue to prosper with NFT investments. As of the end of 2020, the NFT market recorded a market cap of $388 million and as of today has skyrocketed to $40 billion. This, however, remains a strong indication that the market will be worth trillions of dollars in a few years to come.
Even though the NFT market accordingly provides a productive platform for business transactions, it possesses certain inherent risks, especially for buyers. The market remained stocked with over-inflated assets, which may not even yield well in the future. This consequently means buyers in the market must be realistic and not invest more than 9 percent of their total portfolio in the inflated assets; just a bit of advice.
What the Future Really holds
Meanwhile, the potential of NFTs goes beyond just eccentric digital artworks; art, GIFs, designs among others. It is as well used for next-generation music ownership, digital land purchase, licensing, and publishing digital materials.
Therefore, by the virtue of its offers, it could be unfair to belittle its future because all the traded assets in NFTs are investments that appreciate over time. For instance, the boom in the art industry is a pointer to a better future for those who purchase its NFT. What about real estate in the physical world? It has experienced a tremendous boom over the years too. Can you now imagine what would happen to digital lands in five years’ time? A boom of course!
Take this, the NFT market is here to stay against all odds, and soon there will be no physical object that would not be digitalized and marketed as NFT. This potential development consequently indicates a better economic prospect for the digital world in no distant time.
