NFTs started off as a joke but have progressively grown into a mainstay for players in the crypto industry. What was once touted as a lazy-man’s trade has emerged to be the anchoring technology of Web 3.0. As we shift into web 3.0, here are ten reasons why we believe NFTs will continue to be a hot trend in 2023.
They operate on decentralized tech.This means they can be owned by anyone and can be accessed from anywhere. You can also trade them with ease.
Gateway to the metaverse. The tech world has realized the potential of the metaverse.All assets in the metaverse are NFTs and can be traded as such. As the metaverse grows and pivots, these NFTs will find increased use and demand.
Allow for fractional ownership. Expensive NFTs can be broken down into multiple factions and owned separately as pieces of one whole. These pieces are managed by smart contracts. This enables multiple investors to own a piece of a single NFT. This form of ownership can be used in real estate and even art.
Alternative form of investment. Investing in NFTs is a great form of investment for those wary of investing in traditional financial instruments. The more unique the asset you hold, the greater it’s intrinsic value. When done right, the upside potential of investing in NFTs is huge.
Creators earn from NFTs. NFTs give artists and designers a chance to get solid and consistent income. They can also earn royalties in perpetuity every time their works are sold to other buyers.
Created millionaires in the last few years. Some NFTs like the bored ape NFTs have turned buyers into millionaires. When launched, these NFTs retailed for a few hundred dollars. Currently, the cheapest bored ape goes for hundreds of thousands of dollars.
Any asset can be represented as an NFT. NFTs have made it possible for any asset to be represented digitally and in a unique manner. Real estate, fashion and even artworks can be represented on the blockchain and transferred from one user to another.
Tech enthusiasts and experts are flooding into NFTs. C level executives from legacy tech institutions are steadily venturing into blockchain tech and NFTs. This massive flow of quality talent will result in more product development for the blockchain industry.
Governments are getting into NFTs. Japan and the UAE are at the vanguard of this. They have not shied away from recognizing, adopting and harnessing NFTs and web 3.0 for their day to day activities. We should see more governments embracing NFTs in 2023.
Represent unique ownership. Since NFTs are anchored on Blockchain tech and are non fungible, owning one means it is unique and can’t be replicated. This feature enables them to find wide use-cases across multiple industries.
These are some of the reasons why we believe NFTs are here to stay. As this industry matures, more uses will be found leading to increased adoption across the world .
