Increasing Popularity Of Non-Fungible Tokens (NFTs): Why It’s Time to Invest In NFTs Over Cryptocurrencies
Why It’s Time to Invest In NFTs Over Cryptocurrencies
NFTs or Non-Fungible Tokens have been in the news recently. Artists, crypto enthusiasts, and investors have shifted their focus from cryptocurrencies and tokens to NFTs. The article talks about why it’s high time to invest in NFTs than Cryptocurrencies.
Non Fungible tokens (NFTs) are the next big thing in blockchain technology. NFT technology has been adopted by several major sporting, music and entertainment groups such as FC Barcelona, Marvel, and Gucci in recent years. An NFT from a digital artist known as ‘Beeple’ has even been sold at Christie’s, a famous auction house, for a whopping $69 million. Such rapid real-world adoption shows that NFTs are an investment class with more promise than most cryptocurrencies. There are NFTs like CryptoClovers, which is one of the world’s largest digital art collections with more than 999,999 collectibles with uniqueness in design and authenticity of ownership).
Some Fascinating Statistics Around NFTs
Sales volume surged to $2.5 billion in the first half of 2021, representing a growth of 2100% compared to Q4 in 2020. All available data indicates that investors should start shifting focus from highly volatile, manipulated cryptocurrency markets to the more organic, growing industry of NFTs.
According to DappRadar’s Dapp Industry Report, NFT marketplace volume has increased significantly to $75 million between October 2020 to March 2021.
What Are The Risks Of Buying/Investing In Cryptocurrencies?
- Risks of failing Initial Coin Offerings (ICOs): 60% of coins die before one year or being listed at an exchange. Over 2000 coins released after Bitcoin are already dead projects.
- Pump and dump scammers/whales: Small market cap coins are routinely pumped by crypto “whales” using social media and artificially manipulated prices. Once enough investors enter, the coins are dumped, and retail investors suffer.
- Highly speculative products: Cryptocurrency investments are always highly speculative; prices fluctuate based on fake or real news on the internet. Several researchers also think that Bitcoin prices themselves are manipulated using the stablecoin known as USD Tether.
- No inherent value: Many cryptocurrency projects have no intrinsic value and seek to solve non-existent problems or problems where blockchain is not the best solution. Some projects barely have a whitepaper and are still Pumped and dumped.
- Extreme Volatility: Cryptocurrencies, in general, are tied to excessive volatility, with dips of more than 20% in a single day not being uncommon. By contrast, a properly chosen NFT can easily hold value and be traded at a premium later, thus showing its advantage over low market cap coins.
What Is NFT, And Why Should One Invest In NFTs And Not In Cryptocurrencies?
NFTs or Non Fungible Tokens are digital assets equivalent to certificates of ownership for other tangible or digital assets. There many reasons why modern investors should consider NFTs, such as:
- NFT gives the ownership of the digital or physical assets: An NFT is a collectable digital asset. It acts as a unique digital certificate of ownership and authenticity for a virtual or physical item.
- Value of NFT depends on asset value and is not pure ‘hype’: Investors can appraise the value of an NFT from its utility, creator, history of ownership and perceived future value. NFT values are not as speculative as in the case of many cryptocurrencies.
- Prominent Brand Names: Several major brands such as FC Barcelona, Marvel, Gucci have issued NFT tokens and merchandise. As long as an investor thinks these brands will be around, they can rest assured that these NFTs will hold value.
- Less Affected By Regulatory Uncertainty: Several cryptocurrencies face regulatory uncertainty and lawsuits, such as Ripple (XRP). Such uncertainty is not present in the NFT environment, which is well-integrated with the general economy.
- Practical Goals: Several cryptocurrencies have impractical goals, such as revolutionising the entire financial system or replacing giant entrenched industries and societal institutions. NFTs meanwhile have realistic goals and real-world counterparts in art collectables, showing their viability.
- Waiting To Explode: A few NFTs are currently lying dormant in the form of a hidden goldmine, such as CryptoClovers. CryptoClovers are presently waiting for an evaluation result from Guinness World Records for being one of the largest NFT collections in the world. Once the results are out, the prices are going to skyrocket.
What NFT Collection To Invest In?
Investing in CryptoClovers could be a gamechanger as is not only one of the world’s largest digital art collections but it also comes with a unique concept of being a lucky token that can give the authenticity of ownership to NFT minters, collectors, and crypto traders. It offers royalties alongside each sale or purchase that is made. The price of NFT is bound to rise as community adoption grows.
NFTs or Non-Fungible Tokens are here to stay. NFTs’ staying power comes not just from hype but from the potential to solve problems like copyright infringement and help a larger community of artists, musicians, video content creators, etc. NFTs, help such people secure the copyrights, ownerships, licenses of their valuable digital and physical assets and help receive a royalty whenever a copy is sold. They also allow investors to invest in something more tangible than cryptocurrencies and crypto tokens. So if you’re thinking of an investment that can pay in the long term, NFT is the answer. We recommend you to have a look at CryptoClovers if you are here to invest in NFTs.
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