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Should You Invest in NFTs, or Their Future Practical Uses in Tech?

Should You Invest in NFTs, or Their Future Practical Uses in Tech? 40

Non-Fungible Tokens (NFTs) took the successful essence of blockchain, its immutable public ledger, and ran with it. The opportunities on the horizon feel endless. New investment cases appear daily. 

So what are they? Instead of keeping physical ownership certificates, you can hold NFTs in your digital wallet–each token representing a unique asset. And since the blockchain is public, nobody else could register as having it too. Do you remember when people traded stocks via paper only? No, right? 

Where Did They Come From? 

Chances are you know about Bitcoin and Ether. Chances are you know their prices can rise like rollercoasters

Yet NFTs are not coins of a cryptocurrency. They are all unique. One might represent a work of art, another a song, another a video, or even an in-game item. If it’s unique, if it’s an asset somebody else on Earth might want, it’s fair game. 

The first NFT was dubbed “Quantum,” a pixelated, mesmerizing octagon that pulsed in an unforeseen way. See it for yourself here. Notice how it sold for over 1.4 million USD? 

When the Ethereum blockchain started to boom around 2017, so did NFTs. Ethereum enabled developers to create their tokens, paving the way for a new level of online investing. 

Cryptopunks is a prime example. A collection of 10,000 unique characters, each with its own NFT. They are all sold out, but current owners trade them through online marketplaces. The cheapest punk right now is still over 170,000 USD. 

How Can I Invest in Them? 

You need access to a crypto brokerage and then to an NFT marketplace. For example, online investing via SoFi is a great way to start because the whole process is simplified for you. And before you know it, you can buy your very own punk before it’s worth over 200,000! 

Some of the most notable NFT exchanges we see today are: 

  • Opensea
  • Axie Marketplace
  • CryptoPunks
  • Rarible

Take Opensea, for example. It’s clear that a purely online investable universe has been crafted in the last few years. This is both an opportunity and a challenge. 

How to Value an NFT?

A diamond receives value from its beauty, its shininess even, and its scarcity. Gold is similar, as are several precious metals. 

How do you value an NFT? Particularly when a digital pixel punk can set you back six digits. Why is a natural question.

All the more tricky when we have to acknowledge that art is subjective. There are, however, a few correlations to watch: 

  • Popularity. How much of the world is talking about it? A CryptoPunk, yes. A random watercolor, no. 
  • Utility. Backstage passes and tickets. There are NFTs for those too. 
  • Previous ownership. Who’s selling it? A celebrity? Or your neighbor? (No offense to the neighbor, unless he or she is a celebrity!) 
  • The artist factor. In the same way a Picasso is a Picasso. Who made the NFT? 

What is Their Future? 

Did you know that Bill Gates was mocked for trying to spread the internet? Yeah, that happened. 

So what is the correct response as the online world expands yet again today? History tells us in objective terms not to balk at the new, the unknown. 

Particularly when the growth is pervasive, rapid, and relentless. There is no benefit to standing at the sidelines while new fortunes are made. With NFTs, anything is potentially up for sale. So you never know, you might have in your garage the physical makings of a new hit NFT.

Disclaimer: This website is distributed for informational and educational purposes only. It is not intended to constitute investment advice. All investments and investment strategies involve the risk of loss. Any investments and investment strategies discussed herein should not be undertaken without prior consultation with a financial professional. 

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