We are hearing more and more reports of NFT sales in the tens of millions of dollars, but how lucrative are they overall? Is it really worth our money to invest in them? We’ll see…
NFTs are relatively new and intriguing phenomena. Having been around since 2014, NFT they are unique tokens intended to identify the ownership of a certain digital work of art. They are shaking up businesses all over the world.
A product or asset that can be exchanged for another good or asset of equivalent value is called a “fungible.” A $1 bill, for example, is fungible because it can simply be exchanged for another dollar. So for something to be non-fungible, it simply needs to be one of a kind.
A NFT Demonstrates sole ownership of a digital asset, although you can buy an NFT at a fixed price, its market value is likely to change as it is non-fungible.
NFTs have sold for tens of millions of dollars, with one, The Merge, grossing just under $100 million. As a result, the question arises: should we all consider investing in them?
Should we invest in NFTs?
As with all other types of investment, NFTs pose financial risk. While, of course, there is a chance that you will get lucky and win millions of dollars, there is an even greater chance that you will not win anything or even lose your investment entirely.
How you choose to invest your money is up to you, and if you think the NFT trend will head in the same direction as cryptocurrencies like Bitcoin, then go for it, as long as you’re only risking equity you can afford to lose, as should always be the case.
While we cannot stress enough that investing in NFTs is a huge financial risk, there are a number of arguments in favor of such an investment. Here are 4 reasons why you should invest in NFT:
1. ability to resell
Most people buy NFTs with the intention of reselling them and making a profit. Due to the scarcity of some of these collectibles, if you invest in the appropriate NFT, you can earn a lot of money. If you can make good investments, NFTs have great potential to bring you excellent returns.
two. own something unique
The exclusivity of NFTs is another factor that makes it a unique experience for merchants, and the fact that they cannot be counterfeited makes them even more precious and valuable. Under most circumstances, each artist or vendor will have a small amount of NFT, meaning such collectibles will have a better chance of holding their value. Which is, once again, beneficial for an investment.
3. financial security
For many traders and investors, the security of an investment choice is a critical aspect in deciding whether or not to participate. As a result, when it comes to NFTs, an investor can be confident in their safety. Because of the way that block chain As the market operates, investors do not have to worry about data loss that could render their investments worthless.
Four. decentralized market
NFTs are an unusual investment option, but since they are a decentralized market, artists can directly profit from their work. NFTs reduce the need for intermediaries and the fees they must pay, which also benefits investors. Also, as a result of this, the original developers of an NFT will be able to receive a fee each time the NFT changes hands. This decentralized method distinguishes the NFT market from many others, unlike many others.
How much can NFTs be worth?
When viewed simply as a work of art, there is no limit to the final value of NFTs.
Right now, individual NFTs sell for tens of millions, with many worth at least four figures. Who decides how much they are worth? Well, when it comes to art, beauty is in the eye of the beholder.
However, just because one person feels that an NFT is worth $10 million in their eyes and is willing to spend that much, it does not mean that someone else will come along and value it as much or even more, which is where a profit would be made.
Here are 3 of the highest NFT sale prices to date:
1. The merger: $91.8 million
The Merge, which was created by digital artist PAK, is the highest-priced NFT sale to date, with $91.8 million on Nifty Gateway. In the case of The Merge, however, there is no single owner of the NFT, as almost 30,000 people collectively bought the piece.
The Merge was made available as an open edition, which is the opposite of a limited edition. Buyers can purchase any number of tokens for $575, and the price increases by $25 every six hours. The tokens were sold for a total of $91.8 million in the end.
two. Every day: the first 5,000 days: $69.3 million
When it comes to rewarding consistent hard work, the art industry may not have a better example than Beeple. Beeple made it a point to create a new piece of digital art every day, and after the first 5,000 days (and pieces of art) he decided to auction off the collection.
When the collection sold for $69.3 million at Christie’s auction house, Beeple responded with a single tweet with the words “Holy F***.” While he obviously knew his art was worth a lot of money, it’s clear he wasn’t expecting a large sum.
3. Watch – $52.7 million
‘Clock’ was a collaboration between successful digital artist PAK and WikiLeaks founder Julian Assange, it works virtually like a clock, recording the days Assange has been locked up.
‘Clock’ was purchased by AssangeDAO, a group of over 10,000 people who pooled their money to purchase the artwork in support of Julian Assange, with the aim of generating money for a legal defense.
Jake is a professional copywriter, journalist, and lifelong tech fanatic. He covers news and user guides for KnowYourMobile.