Have you ever considered investing in Non-Fungible tokens, better known as NFTs, lately? Are you also one of these crypto enthusiasts who are highly motivated to learn as much as possible about the booming NFTs, and how did they come to the spotlight in 2021, and especially 2022?
Since their first appearance back in 2014, crypto devotees and future NFT investors have been keen to gather all the valuable information regarding these non-interchangeable units of data that have been stored on digital ledgers, mostly Blockchains.
They’ve recognized the potential of Non-Fungible Token’s value growth, especially when they’ve noticed that more and more VIP personas are starting to mint their own NFTs.
For example, when it comes to Canadian rapper Tory Lanez NFT price of his original copies is currently trading for several thousand times more than their initial price. It means that an album that has been sold for $1 is able to be bought for an incredible amount of $60,000.
So, what’s so exciting about NFT investing in 2022 that you should be aware of as a future investor? Let’s start with the essential information regarding NFT for absolute beginners, shall we?
For newbies in NFT investing world, it is crucial to understand what NFTs are in the first place. We are talking about verifiable and unique data units stored on digital ledgers and blockchains, just like Ethereum or Bitcoin. However, NFTs differ from these cryptocurrencies because the value of one NFT is not equal to another. Thus, they’re non-fungible.
People are able to trade Non-Fungible Tokens via online platforms that support them, such as OpenSea, for example. Every NFT includes a digital signature that renders it a one-of-a-kind or non-fungible Token. Unlike cryptocurrencies, the same kinds of cryptos can be traded, such as bitcoin with bitcoin, since they’re equal.
Non-Fungible Tokens refer to digital representations of real-world items such as audio, photos, text, music, and art. However, today even memes, GIFs, tweets, and a variety of stuff in the real world could also be Non-Fungible Tokens.
NFTs came into the spotlight in March 2021, once the artist, famous by its name Beeple, managed to sell NFT representing a collage of 5,000 digital images for more than $69 million at Christie’s.
In 2022, Non-Fungible Tokens will continue their growth as an internal part of numerous branding strategies. Thus, those who consider themselves future investors and are still wondering whether investing in NFTs in 2022 is good or bad should know that it’s good for one reason.
The global NFT market is expected to grow from $14.02 billion in 2021 to an impressive $21.33 billion in 2022 at a CAGR – a compound annual growth rate – of 52.1%. By the end of 2026, experts estimate that the market will reach $82/43 billion at a CAGR of 40.2%.
However, before you decide and start your NFT investment career, it is imperative to understand the value of the underlying asset you are investing in before buying the Non-Fungible Token. Ensure that you’ve done deep research about your preferred asset so that nothing can come as a surprise. Good luck!