The talk of the town in the crypto world for a considerable time has been all about NFTs. Now you would ask what’s so special about NFTs? Well, NFTs have turned out to be a multi-billion dollar market in 2021 and everyone noticed its exponential growth of it.
Some investors are still varied about its authenticity and future, hence we have curated key reasons why NFTs are going to be viable long-term assets for you to invest.
So What are NFTs?
NFTs are unique online digital tokens based on blockchain networks containing information regarding authenticity and ownership certificates. These NFTs tokens can be of anything such as digital art, photos, music, video, memes etc.
So basically you can mint anything which can be digital assets as an NFT on blockchain, through NFT marketplace for a certain gas fee or for free by lazy minting.
Future of NFTs:
Ever since a famous artist sold his NFT art collection for millions through a famous auction house, the traction for NFTs simply skyrocketed. More creators and investors took notice of the same, and joined the bandwagon.
Now NFT is an ever growing market with billions of dollar’s traded in, just last year in 2021 it was reported NFT market was worth $41 billion and it is estimated to do many fold’s than previous year in 2022.
That establishes how popular NFTs are and viable for long term assets. Hence many big investing firms, big businesses and big brands are getting into the NFTs for the greater potential it offers.
Its value has been expanding to new heights every passing day by millions and millions being traded. So it is safe to say NFTs are here to stay and growing rapidly each day and it is the right time now to invest in the right NFTs of your choice for the long term.
List of Reasons to consider NFTs for Long-term Assets:
1. True ownership:
The very concept of owning the digital asset with authenticity and certificate makes NFTs the most popular choice in the crypto world. Utilizing the benefits of blockchain technology, it is easily verifiable the authenticity and ownership records of NFTs made available for everyone. Considering it is peer-to-peer transactions and no middlemen involved with each NFTs sale, the true ownership is transferred and acquired between two people. This very concept makes NFTs that much valuable for long term investment in all types of NFTs.
2. Value of scarce token:
As a rule anything which is in scarcity and in high demand would raise the price to sky. Same applies to NFTs, considering most of them are very exclusive and unique in identity. Since NFTs are released in limited numbers and they can not be replicated successfully, that makes them scarce to be acquired. These limited NFTs would yield the most in the long run when their exclusivity increases their value the most.
3. Exclusivity & Uniqueness:
Well known fact of NFTs is their uniqueness, which can not be replicated. That makes NFTs very exclusive digital assets to acquire with authenticity and true ownership. Due to its forever ledger available for each NFTs on Blockchain makes them that much valuable for future investment. Knowing you would have the authentic, exclusive digital possession, trading them later when its value is acceptable by you.
4. Decentralized Game items:
Apart from Art NFTs, no other industry has seen a greater potential in NFTs than the gaming industry. Game creators could revolutionize Game NFTs with a plethora of interactive features and in game items for purchase. Even the players were benefited by the Play-to-earn (P2E) NFT Games by being able to acquire game items and later trade them for tokens.
Some of the particular game items could be useful for other NFT games from the same developer that made them even more precious. Since all the game items are safely stored forever in blockchain, investing in these precious NFTs for playing or trading is certainly a good idea.
5. Greater Visibility:
NFTs have been great for both creators and fans alike, it brought them together under one platform with no barrier. Now creators could interact with their fans and sell their creations directly without any middle authority at all.
This created a decentralized ecosystem, where everything is peer-to-peer, anyone with an internet connection could put their creations online and sell them to the enthusiasts directly. And this ecosystem is here to grow and as evident recently its expanded into all forms of digital assets where creators could place their products on the marketplace for the price they set directly to their fans.
6. Becoming mainstream:
Even though NFTs are relatively new and niche in the crypto space, and considered favorite for crypto enthusiasts. It has become among the most searched terms in 2022, after few NFTs have been purchased for millions.
Since then all mainstream media, investors and also creators along with game developers have taken notice of the greater potential with NFTs. As more and more the NFTs become mainstream, more people will invest, financial institutes will get involved and better yet just become the norm.
7. Appealing like traditional stocks:
Just like trading in traditional stocks takes lots of research and knowledge for making it a viable long-term investment, NFTs also require considerable research and expertise to consider investing in right NFTs for long term assets. Although it gets easier for collectors and enthusiasts since they would appreciate the value of the purchased NFTs and enjoy collecting them. So similar investors who tend to collect arts, antiques and other rare items, apply the same logic to considering collecting rare and unique NFTs.
8. Easy to Trade, Flip or Loan:
NFTs can be easily traded or can be flipped on the NFT marketplace for other digital assets or any other NFTs if you would like to acquire other NFT instead, which makes them an excellent long-term asset to have.
Since NFTs have the proof of authenticity and ownership readily available on the blockchain, trading the same on the marketplace becomes easy for a sense of security and originality. For the same reasons, quite recently investors have come up with the concept of loaning it out to others in turn for tokens, specifically in the NFT gaming community.
It has been foretold at the beginning of NFTs by many investors and business analysts, it’s not going to make big in the market and would be a small niche platform. Well as it is evident, NFTs are not a small or niche anymore.
It has become a huge sensation across the globe for everyone to notice and take benefit from adopting the same. As our generation is moving fast towards all digital and app-based, sooner or later NFTs would make exceptional sense to be acquired.
For this alone, you can make sure investing long-term in NFTs is a more understandable and sensible asset.