From celebrities to your peers, everybody is talking about NFT. Many people are still unaware of what NFT’s exactly are but the level of curiosity and intrigue it has brought is making everybody go crazy. Gen Z especially is suddenly driving trends and investing in NFT’s. But what are NFT’s and why will they grow exponentially in 2022? We tried to investigate the reasons behind this growth and here is what we found.
To begin with, we need to go a little back in history, to the time when computers had been introduced to the world along with the ‘world wide web’. That was used only for reading purposes and collecting information. In the early and middle years of the 2000’s we saw the integration of payment systems, and advanced internet, we could find reviews and do a lot more with the internet. Thanks to this integration we saw some of the biggest companies today like Amazon coming to life.
Brace yourself for a newer and much more advanced internet that is bringing and seeing a lot of new and never-heard-before concepts like the Metaverse, cryptocurrencies, and currently the trending NFT’s.
What is NFT?
NFT stands for Non-fungible token, which is still difficult to understand. A fungible token means something that can be interchangeable or its value can be interchangeable. A good example of this is cash. You can exchange a $10 bill for a different $10 bill or for two $5 bills without affecting it’s value.
Similarly, when we talk about the non-fungible token, it means that it is non-interchangeable and unique. A good example of this would be the famous Mona Lisa painting. It cannot be exchanged for another one and is one of a kind.
NFT’s are one-of-a-kind and unique digital assets. Usually, they are seen as digital art in the form of a video or image. These are sold on the blockchain after being minted as an NFT. OpenSea, Binance, and KnownOrigin are sites or marketplaces for selling NFT.
Here are some reasons why NFT’s will grow exponentially in 2022 if you still can’t wrap your head around it.
Familiarity with digital assets
Many people are already using digital assets. The world seems to be comfortable with digital assets and maybe a little obsessed too. Some of the most popular digital assets are from the gaming industry like the Call of Duty Maps, Fortnite skins and FIFA Ultimate Team Cards, and many more. It is common to see these assets in the form of FIFA Ultimate Team cards have been sold for thousands of dollars. This tells us how big and important digital assets are.
NFT’s have also taken off because of the involvement of influencers and big-time celebrities in NFT’s. From Paris Hilton to Snoop Dog, many of the celebrities are selling their digital art for their charities and themselves, this is creating interest and also brings a lot of focus on NFT’s. This is one of the reasons why young adults are investing in NFT’s now.
Scope for Investment
Investors around the world are regretting not investing in Bitcoins sooner. Whatever comes up today, everybody is ready to invest in it. Gen Z and many others have taken a keen interest in investments, probably because of the pandemic and the uncertainty that comes with it. Many industry experts believe NFT’s will bring returns in the future much as the BItcoin did.
Transparency regarding Ownership
With NFT’s there is transparency pertaining to ownership as it follows a blockchain technology for trading NFT’s along with smart contracts, this eliminates teh need for a central authority over this. This advancement makes it difficult to recreate that level of authenticity in the digital and physical world. Once the new owner gets the NFT, it stays in their digital wallet for everyone to view and also see who owns it.
These are some of the reasons why NFT’s will grow exponentially in 2022 and bring a digital revolution, if they haven’t already. Don’t wait till it’s too late to invest in NFT’s if it interests you.