NFT’s or non-fungible assets have gained massive popularity over the past few years. As a part of the Ethereum blockchain, these digital assets store extra information and take a range of digital storing forms.
Many cryptocurrency investors are still doubtful about the benefits of investing in NFTs. This interview with expert entrepreneur and venture capitalist Ryan Dean Hoggan explores the concept of how NFTs can be game-changers in the blockchain space.
Are there Sure Prospects of Making Profits with NFTs?
There is no way to establish that the asset will generate sure profits. However, I can tell you that the NFTs show a positive growth history so far.
Additionally, the crypto-art market has shown positive exponential growth over the past decade, and more and more artists are choosing to have their art “tokenized.” The growth is bound to boost NFT market values as well.
What Gives NFTs the High Collectability Value?
While NFTs exist on the blockchain, they can represent both tangible and intangible items. NFTs allow artists to tokenize their art by creating a digital ownership certificate.
You can buy or sell these digital certificates. NFTs can tokenize anything from music files to Super Bowl moments to 3D art and videos. So, I believe their value depends mainly on the value of the art they store.
Investors get ownership rights to the unique piece of art they now own. Ownership information and other relevant details are stored in the blockchain.
Therefore, collectors don’t have to worry about duplication and identity theft. I believe the most significant benefit of NFTs is that they eliminate the need for intermediaries.
Are NFTs Resalable?
Yes. You can sell your NFTs to a third party or buy NFTs from a third party any time you want. The blockchain stores data of ownership lineages, and you can trace the previous owner easily. In my opinion, the secondary market has been growing at a rapid pace.
We’ve even seen transactions where the secondary sale price was higher than the introductory sale price. Richard Chen, the creator of Crypto Art, said, “I think the smart collectors who understand NFTs realize that the NFTs are valuable in the long run” and I agree with him.
What is Your Take on NFTs Current Market Performance?
I can safely say that the NFT market has been growing consistently and is showing no signs of slowing down anytime soon. The market cap of NFT projects has increased by around 1,786% this past quarter. The fact that celebrities are releasing their own NFTs is causing the demand and valuations of NFTs to soar.
Do You Think NFT Values are Likely to Rise Further in Future?
Rarible’s NFT sales have increased by over 50 times in just three months. Opensea is another NFT marketplace that experienced considerable sales spikes. I myself have been checking out potential NFTs to add to my collections on both Rarible and Opensea.
I believe NFTs are going to remain a significant crypto investment opportunity for a long time. These examples are encouraging other major crypto market players to create high-value NFT projects. So, I’d like to add that the future of the NFT market is looking great so far.