The NFT space is snowballing for the right reasons. Learn why they might be worth keeping for long-term purposes.
Everyone knows the non-fungible token market has taken the world by a storm this year. The space has recorded more investor presence— retail and institutional— and you too have probably made some fortune from them. Although critics still find it hard seeing more to it than a bubble where Gen Z’ers keep finding jpegs to flip for profit, it is becoming clearer by the minute that NFTs are here to stay— for the very reasons that came to the fore. As NFTs chart their way atop the viable assets class, it becomes more crucial than ever to remind ourselves of the reasons they are valuable. This short piece highlights three reasons why NFTs might be viable long-term assets.
By now you must already know that NFTs solve the ownership problem thanks to its underpinning tech, blockchain (if you are uninitiated, refer to articles on the blog to get in).
Considering how NFTs leverage blockchain’s attributes, it’s quite understandable why millennials and Gen Z’ers are onto it. The world wants to be free of middlemen and central authorities. More people are now exploring DAOs, establishing community-based ownership by using a proof-of-stake model. NFTs introduce a new paradigm in the creative industry. Digital artists, musicians, writers, memers, doodlers, whatever. You can now own your stuff and sell it directly to people.
The online gaming industry has always been a huge one and NFTs have real potential to revolutionize it. NFTs create ways for gamers to profit off of their in-game purchases. Gamers will be able to exchange game accessories such as wears, weapons, or even special abilities, in a shared economy. Game developers might also incentivize gamers by allowing them to collect and trade rare collectibles on NFT marketplaces. The same tokens might even be usable for different games developed by the same company.
3 Greater Visibility
The growth of any space is hinged on visibility and NFTs have fared pretty well in that for obvious reasons. A major one that is often underrated is creating ecosystems. NFTs are bringing creatives together making room for potential partnerships, and building strong markets around creatives and their fans. Anyone on the globe with an internet connection can put their works online, sell to others or partner with other creatives to produce more valuable products. Creators sell at fair prices, buyers can pay in different tokens, fostering a flexible buyer-seller relationship.
Opinions on NFTs might be controversial, their rise isn’t. As the world rapidly moves on to digitization, more people will realize that NFTs are not a flip-model market that favours only the lucky. NFTs reward creators and collectors alike. Admittedly, a lot still needs to be addressed regarding policies and climate concerns, but it is not hard to see long-term solutions as we keep moving. If anything, the needs currently being met by NFTs are only precursors to more fields being transformed positively.