NFT Investing

NFT's have taken 2021 by storm. Creators have jumped on the the newest form of digital expression and haven't looked back. Lets dig into to the basics of NFT's and why they could be an investment opportunity.

What the Heck is an NFT?

If you are unfamiliar with the term, its OK, you are not alone. NFT stands for Non Fungible Token. In the simplest terms an NFT is a digital asset(picture, gif, code, etc) that exist on a blockchain network and can only be accessed by the owner. Most NFT's are purchased online using Ethereum (ETH). The transaction takes place on the blockchain network and the new owner is "inscribed" to the ledger. Some NFT's can have underlying smart contract properties(more information to come about this).

Why should you care?

When I talk about NFT's the common phrase I hear is, "Aren't NFT's just expensive gif's?" At first glance a NFT can appear to be just another way to fleece a consumer for a picture or video they can easily find on the internet. Digging deeper, NFT's are only in the infant stages and have a lot of room to improve and show what they can really become. NFT's can possess specific code and smart contract properties that can allow the original creator and or investor the ability to benefit financial from every transaction. Imagine, a young artist sells a creation for $100. In a non NFT world, this is the end of the road for the creator to earn revenue from his/her creation. The person who purchased the creation for $100 could sell it for $1,000 the next day and the original creator would not benefit. Changing places and moving into a NFT, the original creator can insert a smart contract into the NFT that will allow them to get a percentage or dollar amount from every transaction in perpetuity. GAME CHANGED. No more starving artist and creators. Creators can create unique scarce items without the fear of losing out on the eventual upside. The consumers also benefit by getting potentially faster growth and more creation from people who make great stuff.

This is why NFT's can be an exciting investment. To be clear, the NFT marketplace is young and caries risk so proceed with caution. I would suggest to do a lot of research before purchasing your first NFT. The NFT market can be overwhelming at times. I have found it helpful to find a niche NFT market that you enjoy and learn as much as possible about the market and insert your self when you feel ready. NFT values have amazing upside and the potential to change the lives.