You buy it and then what? You own a highly unique token that only five more people have. What are the cons of NFTs?įirst, it is clear that at their current state, NFTs for the purpose of collectibles serve absolutely no purpose. But we can speculate all day on how likely it is for NFTs to grow beyond ‘hyped’ products. It is hard to imagine digital collectibles being used by retail investors if not even hardcore crypto experts are interested. In fact, there are more people who discuss the subsector than those who actively use the platforms. However, how likely is it that they reach adoption within the crypto community? In September 2020, only a handful of users on Crypto Twitter discuss NFTs and trade them. We have explained what NFTs are and what market they cater to. Perhaps they will not be popular today, but in a few years, these platforms and tokens might enjoy significant popularity. All in all, it is hard to not expect NFTs to gain traction in the future. On Rarible, we have seen that the most popular collectibles are literally memes and references to the modern internet culture. Similarly, they are interested in artwork, memes, and internet culture. The community is filled with creative and young investors who are ready to take over the world. While future technologies remind us of boring dystopias, the crypto community works entirely opposite.
Moreover, the community behind blockchain technology and cryptocurrenciesdo not have a corporate undertone. Nevertheless, based on the interest we can see that NFTs have a significant market.
Of course, not everything from this list can be digitalized and decentralized. Even now, there is a vibrant community within the gaming industry that collects in-game collectibles, statues, stickers, and toys. In the past, we have seen how kids and adults alike became interested in owning a collection of stickers, cards, and other items. So, let’s start with the pros first.Īs I mentioned before, NFTs are just modern-day collectibles. It is almost as if the people who own the platforms and publish NFTs are the only ones in the community that push NFTs.įor you to have a better perspective on how NFTs might play out and what their future might be, it would be good to list some pros and cons. On the other hand, interest and demand for NFTs almost seem unnatural. In the past decades, niches have always profited with the rise of the internet. They propose a value that is very specific. The ProsĪs you may see, NFTs are neither good nor bad.
Naturally, this led to the community asking itself if NFTs may even live up to investor expectations. What is even crazier is that some individuals started uploading selfies on Rarible to sell them as NFTs. Rarible is still a young platform and at the moment it seems silly to spend multiple Ether tokens for a picture that someone downloaded from the internet and uploaded it as his own work. The truth is that most people are pushing the narrative for their financial interests. In the past few weeks, my Twitter timeline showed me an interest in NFTs that can only be regarded as forced or orchestrated. However, this is only the narrative that investors are holding on to. Their goal? To popularize collectibles, this time in a decentralized fashion. Remember how kids in the 90s and 00s used to collect Pokémon cards, Yugioh cards, football stickers, and a multitude of other collectibles? Today, the same kids who collected these are grown up and a part of the decentralized finance industry. As a reminder, NFTs are simply put a unique type of token that are limited in their quantity. Rarible is a new platform and marketplace where users can purchase and sell digital collectibles in the form of NFTs. This time, DeFi’s latest craze is artwork published in the form of NFTs on Rarible. As 2020’s yield farming craze appears to have come to an end, investors are looking for a new target. Cryptocurrency investors seem to have become interested in non-fungible tokens (NFT) as yield farming rewards have been severely reduced.
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