NFTs and the Crypto Winter of 2022
The NFT Art market, along with the crypto and stock markets, have a seen a steep decline in the past several months. NFT Art sales went from over to $12 billion in January of 2022 to just over $1 billion in June of 2022. Yet, there is still reason to believe that NFTs and the NFT Art market are not going anywhere anytime soon. NFT Art is more just art. It is art on the blockchain! In this blog post, we examine some of the unique benefits that come with owning an NFT.
NFT Art and Digital Assets
Non-fungible tokens or NFTs have created an asset class that did not exist 15 years ago: digital assets. Digital assets are assets that exist in a digital format and that are secured and maintained on the blockchain. Owning an asset that is on the blockchain has enormous benefits for the NFT Art owner. The blockchain is encrypted and ownership is easily verifiable. Further, the blockchain is immutable and cannot be hacked or manipulated by any bad actors.
The blockchain technology also allows for the easy transfer of digital assets. For example, an NFT Art owner can go to a very liquid NFT market and sell his NFT. Als0, a consumer interested in purchasing an NFT, can go to an NFT marketplace and browse a wide array of digital assets before purchasing the NFT they like. This easy transfer of value and ownership is a fantastic benefit and only possible because of the power of the blockchain.
NFT Art, like traditional art, can be used by its owner as a status symbol. Many famous celebrities and sports stars have already changed their profile pictures on their social media platforms to their favorite NFTs. Profile Picture NFTs or PFPs are a way to show off your NFT to the world. Twitter has already integrated technology that enables users to distinguish between regular profile photos and NFT PFPs. Facebook and Instagram are now in the process of rolling out similar capabilities.
The NFT PFP is an easy way for an NFT owner to present to the world their NFT, their style, and their avatar of choice. Snoop Dogg’s Twitter PFP is his Bored Ape “Dr. Bombay.”
NFT Art, like traditional art, may appreciate in value. There are thousands of NFT Art projects that have increased in value over the last few years. Similarly, to traditional art, NFT art can appreciate as the art owner continues to hold onto the artwork.
The creation of the non-fungible token created a new phenomenon: digital scarcity. Digital scarcity exists on the blockchain because the supply of a digital asset can be limited by the asset’s creator. In other words, an NFT can be a limited edition of just one, ten, or even ten thousand. This scarcity of digital assets can create a huge opportunity for appreciation of the assets, as owning something that is unique and one-of-a-kind can add tremendous value to the asset.
Thanks for reading our blog post! If you want to know more about all things NFT and NFT Monkey related, don’t forget to check out The Ultimate NFT Monkey Guide!