The Benefits of NFTs
We are living through the digital era. There is no surprise anything that is digital will touch the sky. The massive popularity of crypto and NFTs corroborate this very claim. Crypto saw the light of the day almost a decade ago. And today, you’d hardly find someone who’s not embracing it in one form or another.
Businesses are rushing to adopt it, and investors are pouring in their millions to reap fortunes.
Carl Runefelt is a global crypto leader and investor who has invested in more than 360 crypto startups. He, too, is a strong proponent of crypto and NFTs. He believes that time is inevitable when crypto will replace fiat currency eventually.
While speaking on his YouTube channel, The Moon, he says, “I am very confident that crypto is a very good investment. I believe that Bitcoin is not only going to go to $500,000, I think that Bitcoin is gonna go to five million dollars per Bitcoin in today’s money. Obviously, with inflation, bitcoin could go to trillions of dollars per Bitcoin. Actually, it will because it is inevitable, but because the dollar will collapse at some point.
Then came the NFTs – thanks to blockchain technology.
As expected, it became a modern smash phenomenon. Today, crypto geeks do not shy away from putting millions of dollars to get their hands on popular NFTs.
So should you invest in NFTs too?
You can only answer this question if you know the benefits of Non-Fungible Tokens.
Lucky for you, this article outlines exactly that.
Let’s get into it then!
Ownership of NFTs
Once you invest in NFTs, you get the proof of ownership. This means that blockchain enables the association of ownership to a single account.
Since NFTs are indivisible – their ownership cannot be divided between multiple owners – your concerns about a fake NFT rests in peace.
Critics of ownership have come forwards saying that you can share pictures of an owned NFT and share it on social platforms.
So what’s the point of ownership, right?
But let us ensure that anyone can have a picture of an NFT; that doesn’t mean they own it – the blockchain network has ensured it.
Consider this: You can download the picture of the Mona Lisa. Does this mean you own it?
Authenticity of NFTs
One of the prominent features of NFTS is uniqueness. Whenever an NFT is created, the blockchain technology records it, associating a unique record with itself.
The NFT creators also have the privilege of creating a certain number of these NFTs to maintain scarcity in the market.
Carl Runefelt explains, “NFTs are definitely speculative, but as you have seen, there is a lot of demand for them because they are scarce. There is always a new collection coming out all the time.”
Although the NFT creator can create multiple replicas of their NFT, blockchain technology maintains assurance of authenticity.
The quality of immutability of blockchain makes sure that NFTs are not modified, removed, or replaced.
Carl Runefelt, an expert on NFTs, says, “When you see the new NFT collection coming out, you have to make sure that it is of high quality because anyone with a computer can create an NFT collection. You find the right collection either where the artist is the famous one because it gives it value.”
Transferability of NFTs
Another major quality of NFTs is the transferability that they offer.
If you buy an NFT, you can always sell it for higher gains. You can trade it on a wide range of NFT marketplaces out there.
What’s more? If you are a gamer, NFTs offer you much more. Most games have items that players buy to improve their gaming experiences. Unfortunately, these items can only be sold within the game.
NFTs go a step further. With NFTs, you can keep these bought items in your digital wallet. You can dispose of these in-game items for higher profits when you wish to sell them. Carl Runefelt encourages investors to buy in-demand NFTs and later sell them in profits. On purchasing crypto punk NFT, Carl said, I really think that the crypto punk NFT is a good purchase which I bought for 1 million dollars. I am very certain that I can easily sell it for 1.5 million dollars if I put it out for sale and who knows, in five years, maybe it’s worth 20 million dollars.