WHY SHOULD YOU INVEST IN NFTS?
In a world of rising and falling prices, the question that comes up is whether to invest in NFTs and if so, why invest in NFTs?
Since Beeple sold an NFT for $69 million In March 2021, the NFT has created a craze that has awakened the global population to this new phenomenon, mainly to why it costs millions.
At that time, less than 10,000 people owned NFTs, and then there was a transition of people who had been involved in crypto-currencies for two years and were unaware of this movement.
NFT has become an attractive and popular market that is growing at an insane rate.
Combining the technical operation of an NFT with the trading of virtual assets helps to significantly enhance the growth and development potential of these assets. The certification of ownership of a virtual work by an NFT (such as a digital work of art) strengthens the legal protection of its buyer.
In addition to the purely speculative aspect, the craze for NFTs has been carried by some stars like the footballer Neymar or the singer Justin Bieber who have been showcasing their NFTS and interest in them openly on their social media platforms. This eventually ignited much interest in people.
NFTs are both a community item and worth something to some people. There’s a status aspect to it, like someone who would play up their status by having a Rolex. On social networks, hundreds of people will know that you have an NFT. It’s the equivalent of owning a Mona Lisa. NFT are indeed digital works of art which is an asset in itself, furthermore when we are evolving in this digital era.
Tokenization of assets, the computerized process of turning the certificate of ownership of an underlying asset into tokens, gives investors and traders more liquidity. This liquidity allows investors to invest and exit an investment more quickly. Liquidity plays a major role in the valuation of an underlying asset. As a general rule, the more liquid an underlying asset is, the better it is valued in the financial markets.
A non-fungible asset (NFT) is traded on marketplaces. There are a few of them (they are described a little further down in my article!). Trading an NFT in a marketplace promotes transparency in the transaction process. Each virtual asset is traded quickly and easily. A marketplace attracts a larger number of investors, which of course opens up new markets.
In recent months, there has been considerable growth in NFT assets. The greater the record volume of activity, the greater the enthusiasm of investors for these new assets!
Investing in an NFT is first and foremost investing in underlying assets that are traditionally not traded on a financial market. I am thinking for example of a work of art, a sculpture, a bottle of spirits, etc. The creation of NFTs completely changes the way these assets are traded. It opens up new perspectives. A bottle of whisky, for example, which usually finds few potential buyers, can now change owner in a few seconds on a marketplace.
This is absolutely revolutionary!
Be mindful of your investments and weigh the pros and cons of investing in NFTs before you leap into the NFT market.
In the meantime, maximize your chances of growing your wallet by earning them for free in exchange for sustainable content.