Are NFTs Worth It? Hidden Value of the Mysterious Artworks
By JordanRocco // September 15, 2022
Before we delve deeper into the whole NFTs world, let’s examine what NFTs are. In the simplest terms, NFTs or Non-Fungible Tokens are virtual assets that represent videos, gaming items, art, and other real-world objects.
Today, NFTs seems to be almost everything, and some Non-Fungible Tokens are being sold for millions of dollars. The main question is, are NFTs worth all the hype. In the following sections, we examine experts’ opinions on the actual value of NFTs.
How do NFTs Rely on Bitcoin and Other Cryptocurrencies?
Whether you like it or not, the truth is that NFTs are sold like crazy these days, especially in the video gaming and crypto gambling community. Speaking of the crypto gambling community, NFTs and Bitcoin have many things in common. For instance, both rely on advanced blockchain technology to record and validate their ownership and authenticity. Also, in most cases, you need Bitcoin or other virtual coins to purchase Non-Fungible Tokens.
Of course, there are some differences between the two. The biggest one is that the cryptocurrency value is economical, while the value of Non-Fungible Tokens is both non-economic and economic. For instance, many artists rely on NFTs to monetize, distribute, and autograph their artistic work that collectors or investors purchase using Bitcoin or other cryptocurrencies. Essentially, NFTs rely on Bitcoin, but the two are still worlds apparat.
As for other similarities, NFTs and cryptocurrencies are both used in the gambling community. Suppose you are wondering if Bitcoin gambling is legal in your area. Follow the link to find out more. With cryptocurrencies, you make a deposit to play casino games for real money. On the other hand, NFTs are generally used in the gambling community to purchase betting tokens. All in all, both cryptocurrencies and NFTs are crucial for the thriving gambling industry among players who strive to add extra excitement to their gambling sessions.
Are NFTs Worth Investing In?
As mentioned at the beginning, NFTs are selling like crazy these days. According to this Bloomberg article, the global Non-Fungible Tokens market was valued at over US$40 billion at the end of 2021. Essentially, trading in Non-Fungible Tokens increased by over 21,000% in just one year.
While things are looking great for fans of NFTs, experts have opposing opinions on whether NFTs are genuinely worth it. Many experts believe that the whole NFTs market is just about to pop, while others think that NFTs are here to stay.
Either way, trading NFTs is very risky because the future of the whole market is very uncertain. While Non-Fungible Tokens have been around since 2014, it is still hard to judge their performance and make predictions about their future as many details are still missing. Despite this, some experts believe that investing smaller amounts in NFTs just to see how they work can be a good idea.
The whole NFTs market is unique and different from everything else. Also, the value of NFTs is usually non-economic, even though there are some economic factors that impact the value. Still, the global NFTs trading market is mainly affected by demand and not by financial or technical aspects. In addition, Non-Fungible Tokens are usually subject to gains taxes, and these are similar to taxes on selling stocks.
Bitcoin and other cryptos used to purchase NFTs may also be taxed, so this is yet another factor to consider. The bottom line, investing in NFTs is risky, and to boost your odds of making profits, you need to remain cautious to potentially minimize the risk. At the end of the day, if you have some money to spare, investing in NFTs can be profitable.