NFT market is booming

Governments and large corporations are beginning to pay more attention to cryptocurrencies. Bitcoin and Ethereum have become popular forms of investing money. Another form of digital asset is NFT or non-fungible token. In the first half of 2020, NFT’s sales were € 12.1 million. By the end of the third quarter of 2021, they jumped to 9.4 billion euros. And by the end of the year, they can reach 15.6 billion euros.

What is NFT?

It is a digital certificate created with blockchain technology used to make digital objects unique and easy to copy. With its help, works of art can be sold and collected without fear that they will be depreciated. Prior to the advent of NFT, digital art did not retain value as much as traditional artwork. Therefore, now the demand for digital works is gaining popularity.

But it is useful not only for digital art, but also for ordinary art, as it helps to protect it from counterfeiting. As the artist Sasha Yafri explains, “NFT provides proof of authenticity. In order to create it, the work must be scanned using a special program. It cannot be faked. Even if you take two blank sheets of paper, the program will detect the difference between them and create an NFT after scanning. By purchasing a work, you also receive a certificate of its authenticity. ”

NFT Markets

Marketplaces such as Cryptopunks, Bored Ape Yacht Club and Cool Cats sell NFT-protected digital art. Each of them has 10 thousand works for sale. Every day, as a result of the auction, 1000 works are sold. Cryptopunks recently sold a third of the exhibited works for € 472 million. This is a good indicator of the potential of the NFT markets.

Why Invest in NFT?

Why buy digital objects that can be easily copied onto electronic devices?

High-end artworks protected by NFT are featured on their owners’ social media profiles to show off wealth, in the same way that the rich wear expensive Rolex watches. Many people buy NFTs to become part of the online community. Owning an NFT can grant you access to exclusive content or live streams.

NFT trading allows digital investors to make money in a fairly short time. The purchase of NFT is already being incorporated into the business models of many companies. Since the transition of NFT from hand to hand is easy to track, the author of the work with which this electronic certificate is associated can receive royalties (usually 10% of the cost) with each change of ownership.

It looks like NFT will play an important role in our digital future.

Leave a Comment