Why You Want To Start Investing In NFTs

Blockchain technology has come to change many paradigms of ordinary life. At first, blockchain was only about Bitcoin (BTC), then it moved on to the self-executing smart contracts of the Ethereum network, and now it has reached the art market, with non-human digital artwork. This is called “non-fungible token” or NFTs.

NFTs have been an evergreen currency in their own right for years, but only recently they have gained mainstream popularity. That popularity comes from two developments:

1) The ability to buy something 

 A physical object, land, a house, a car, music, even art. You can buy stuff without having to go through any legal intermediaries. For example, you could simply buy your car, house, car or even a piece of music, which then becomes available at no cost to anyone who wants it.

2) The ability to trade that item at a higher price

NFTs are also becoming more accessible every day as more people learn about them. And this helps us to reach a broader audience. As a result, it’s increasingly important to take up some stock in such items, because someone who would not necessarily be interested in owning a certain asset doesn’t need to. Because if we want to keep these products around forever for our collection, which will become part of one of its owner’s collection rather than something new, the owner needs to purchase it at a higher value.

The idea for me is to use NFTs to solve the problem of ownership. Anyone can own anything at all times, and they don’t mind paying over time. But so far, most people only want a little bit of what they have. So, I thought of using NFTs as an ownership solution.

One good analogy is when we bought a piece of land. A few years ago, lots of farmers started talking about starting a farm on that piece of land. Now there were still a lot of small companies hoping to buy the whole area, but eventually the plot went empty because nobody wanted to spend anymore at that value.

Nowadays, everyone can easily buy another piece of land with a different name, with a totally different location, but their owners can give money to buy another piece for themselves even if it’s not where they want it. It turns out this idea of purchasing a single piece of land in order to grow a seedling is already used by everyone around the world. Nobody wants to go and work in that field, but the people who want to play an artist or just want to do creative things can pay people to do those tasks, helping artists and creators save up the money needed to create and distribute their works. Thus, the process of “ownership” is less restrictive and more accessible.

And if NFTs can provide a way to reduce restrictions imposed on ownership, then why is it that so few people have taken advantage? Well, it’s partly due to the fact that while NFTs can allow multiple buyers to acquire the same property at once, each buyer has to pay a set amount of money in order to get the full ownership or profit. On the other hand, in traditional auctions there doesn’t exist yet such a mechanism for verifying the identity of the buyer, nor do there exist any documents proving the transaction was made voluntarily. Moreover, selling NFTs isn’t as easy as buying something online or in person, either. When you buy a piece of art, for instance, and auction it is possible to have all the pieces of the same artwork sold separately. If there’s only five pieces, the buyer will have to buy five separate pieces (or one original), and that’s just not possible with NFTs.

That’s why the second reason that we shouldn’t buy NFTs is so obvious. Yes, NFTs are digital goods and can be purchased on their respective websites and bought from NFT auction sites. However, this means we have to do much more than that to acquire a copy. We also need to make sure we can prove our identity with those NFTs in order to decide if it’s real or fake.

This is exactly what blockchain developers are doing. They’re building NFT-based applications using existing tech, creating their own decentralized identity protocols and finally allowing for access to the rich pool of assets on the blockchain.

But how does NFTs work?

NFTs let sellers hold ownership in digital items, meaning it belongs to whoever buys it. Buyers must send payment for the ownership using cryptocurrency. A number of coins is needed by the seller to confirm the funds were sent before the NFT goes into the wallet of the buyer. Only after the buyer sends the payment, the NFT is released back into the owner’s wallet, whose address is shown by adding a special hash to the transaction.

The user who holds the ownership can choose to grant or deny him or her access to the given items. This grants full access to the content, but at other times it prevents a user to look at the objects. Most often, the owner would like to see the exact picture of the items in front of his or her eyes, but this is difficult with NFTs due to the high security required and the absence of any provenance.

But the thing is, this model is perfect. Everyone should start investing instead of collecting NFTs on eBay or Amazon.com. Not only that, this model gives us the possibility to receive ownership in tangible objects, which, in addition to being valuable assets, can bring more benefits than just financial growth.