Why NFT is worth investing in 2022

Hi, folks! NFTs are a quite new and fascinating phenomenon. We know something about that ;)

We have written this little guide for beginners and those who bought NFTs only for fun, not considering them as an investment tool. This is not an in-depth study, but a few simple theses that underlie the NFT market.

Around since 2014, they’re unique digital assets that are bought and sold online using cryptocurrency. One-of-a-kind tokens used to indicate ownership of a particular digital item (often a digital artwork), NFTs are disrupting markets around the globe from art to gaming, from events to insurance.

Confused? Don’t worry — it’s a lot to take in. That’s why we’ve broken it down into an easy-to-understand guide to everything you need to know about NFTs. Let’s dive in!

What does NFT stand for?

If something is “non-fungible,” it means it can’t be swapped for something of completely equal value. A tract of land would be non-fungible, since land is unique, and finding another tract with the exact same value would be difficult to impossible. Art is another example of a non-fungible asset since its value is highly subjective — and this is where NFT’s come in.

An NFT shows exclusive ownership of a particular digital asset (e.g., a piece of art, an in-game purchase, or a tweet). You might purchase an NFT at a certain price, but because it’s non-fungible, its market value is likely to fluctuate.

How do NFTs work? Are they cryptocurrency?

What do you get when you buy an NFT?

Beeple’s Everydays: The First 5000 Days, a 5,000-piece digital collage. The owner of this NFT is Vignesh Sundaresan, founder of the Metapurse NFT project and the bitcoin ATM provider, Bitaccess.

While Sundaresan is the official owner of this NFT, this image has been copied, shared, and seen by millions of people around the world — and that’s fair game! So, when you buy an NFT, it’s a little like buying an autographed print. The NFT is signed exclusively to you, but anyone can view the work.

An NFT can be any digital asset. So far they’ve included:

  • Artworks
  • Tweets
  • GIFs
  • Songs
  • In-game purchases
  • Essays
  • Domain names

Why would anybody buy a non-fungible token?

Scarcity

Think of it like when you find a pair of sneakers you want to buy and the site tells you that there’s only ‘one pair left.’ If you’re like most of us, this increases your sense of scarcity and encourages you to commit to making the purchase — even if it doesn’t make financial sense for you.

Collectability

However, unlike the art market, NFTs give artists more autonomy as they no longer have to rely on galleries or auction houses to sell their work. By cutting out the middle-man, artists can sell their artworks directly to buyers and keep more of the profits by doing so.

Is it worth investing in non-fungible tokens?

However, if you want to take your chances and enter the world of non-fungible tokens, you’ll first have to open a digital wallet. This is where you’ll store your cryptocurrencies and your NFTs. You’ll then need to look for NFTs on the likes of OpenSea.io or Rarible, find one you like, then buy the right cryptocurrency for that particular NFT then make your purchase.

Then it’s a waiting game. As the value of your NFT is dependent upon how much someone else is willing to pay for it, you and your Pop-Tart cat are at the mercy of the market.

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What if you can become owners of the internet instead of just its users?