A new trend in investing points to NFTs. NFTs are non-fungible tokens that represent unique, one-of-a-kind items that you can buy the rights to through blockchain technology. This means that some of them can be very rare indeed. Let’s take a look at this new trend.
The new trend
Basically, many of us used to collect something, and some of us still have this passion today. I’m sure some of us still have a large Pokémon collection at home. It is very likely that these items will go digital. NFT can be anything from a game card to music, a drawing or even a website. The NFT market is still new, so it is relatively immature and you will find a lot of garbage in it as well. The truth is that the true potential of NFT hasn’t been discovered yet, but what hasn’t can be. The technology is there, it just needs to be exploited.
Older than it looks
NFTs have been around since 2012, but only experienced a boom this year, mainly thanks to cryptocurrencies and promotion from influencers. However, we can’t forget that concepts similar to NFTs were already around before blockchain. They were in a very centralized form. But blockchain and smart contracts have given them efficiency, security and most importantly very fast transactions where you don’t have to wait months for a package from the other side of the world. In addition, both blockchain and smart contracts give you the assurance that your transaction will be recorded forever.
NFT brings us the opportunity to invest in assets that were never available or the thought of investing in them was completely out of the question. Of course, NFTs have their digital rarity just like a rare card or legendary item in a game. Their price is also based on that and it is a full-fledged investment. Lastly, it should be noted that as with any investment, you need to be careful about investing in this new trend.