Because most people at present tend to associate NFTs (Non-Fungible Tokens) with art (i.e., digital artworks), they often also seem to misunderstand the true underlying potential for NTF investments in general. Their thinking tends to be that NFT investments represent an overblown speculative bubble that will eventually burst, leaving foolish NFT investors with worthless digital investments. To debunk this myth we will take a look at what NFT investments may be able to offer investors in the future.
NFTs are here to stay. They are not a passing fad. They are often seen as a way to democratise ownership of digital collectibles by facilitating new ways to monetise creativity in the form of intellectual property (IP) such as art, photographs, music, and videos. For example, the model ‘Emily Ratajkowski’ sold an NFT called ‘Buying Myself Back: A Model for Redistribution’ for $140,000, in order to take back control of her own image.
Emily Ratajkowski, Buying Myself Back: A Model for Redistribution, $140,000
You can view the NFT on the NFT marketplace ‘OpenSea’ here.
This highlights new ways that young people might seek to empower themselves by developing new approaches to generating revenues through selling their personal IP via NFTs. Young illustrators, designers, and graphic designers may seek to sell new and highly innovative ranges of digital items (e.g., streetwear, outfits, sneakers) for use in online gaming or virtual worlds, e.g., ‘Decentraland’. Young new artists can experiment with new ways of expressing themselves through digital art, graphic design, or digitised physical art. New and existing businesses can develop new revenue streams to expand their product offerings via new types of NFTs for sale to new customers across the world.
Young people might seek to develop new NFT collectible art ranges for sale to the public, or they might aspire to develop NFT items for sale in online games. Young artists may experiment by offering new music singles and albums for sale via unique NFT offerings to the global public. The possibilities are endless, and we have to remember that virtual online worlds and the MetaVerse are only just now beginning to evolve. They will offer many more opportunities in the future. Indeed, a quarterly report published by NonFungible.com noted:
“This first Quarter has seen more than $2 BILLION USD traded in NFTs, more than 20 times the volume traded over the previous three months, or 131 times the volume of the first Quarter of 2020.’
Two sectors in particular dominated the NFT ecosystem, which were ‘art’ (48%) (carried by CryptoPunks) and the ‘collectibles’ (43%) (lead by SuperRare), and there were more than double the number of buyers (73,777) as there were sellers of NFTs (33,377). This shows that the global NFT market is experiencing significant growth and is still attracting a lot of investment. Some high value NFTs may still represent highly risky and speculative investments. But that does not mean that the entire NFT market is a speculative bubble.
There are still a huge range of NFT investment opportunities available for investors, as long as they are careful. Investors will likely have to spend a lot more time analysing potential long-term NFT investment opportunities, and less time thinking about “get rich quick NFT schemes”, which a lot of the time should really be called “get poor quick NFT schemes” instead.