Are NFTs The Future Of Sports And Entertainment? These 3 Facts Will Guide You To The Truth
Every time we think that technology has done enough, new tech is born. Technology has allowed society to materialize every idea into a resource that can be sold. It utilizes scientific principles and gives it a real-world application that can make life easier.
As such, we can categorize the invention of the light bulb as one of the earliest pieces of tech.
Over the past decade, mankind has made several significant strides in technology. We saw phones without keyboards, push-to-start cars, and cars that could drive themselves.
We’ve also seen digital assets (cryptocurrencies) such as Bitcoin, Ethereum, and Dogecoin open new ways to handle money. The latest addition to the digital asset family is the NFT (Non-Fungible Token).
What is NFT, anyway?
Our friends at Forbes.com define an NFT as “… a digital asset that represents real-world objects like art, music, in-game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.”
In a nutshell, NFTs are a new way to buy and sell items. They allow you to upload any digital item of your choosing. You can think of it as a digital thumb drive.
So what’s the big deal about NFTs? If it’s just a new way to do business, what’s all the rave about?
The following facts will put everything into perspective.
1.NFTs are being sold for a lot of money
Recent news reports say that Twitter Co-founder and CEO Jack Dorsey is attempting to sell an NFT for 3 million dollars.
What does the NFT contain? His very first tweet.
Who in their right mind is going to buy that?
Well, Dorsey didn’t set the price. He put it up for auction and the bidders did the rest.
People are also using NFTs to sell art. Some believe that it will be the new way to attain fine art.
Reports reveal that an NFT containing a 50-second clip from a music video was sold a few months ago for $388,938. Surprisingly, you can find this clip on YouTube for free.
The value scale is not yet understood, but people are getting profits.
2. NFTs take asset security to a new level
Another way to think of an NFT is to compare it to a rare painting. The original has immense value and unique identifying properties that make it stand out from the copies.
But unlike paintings, an NFT can’t be stolen. No one can break into your home and steal your NFT in the middle of the night. It is secure and accessible by only you.
Neat, right?
3. NFTs are likely to only increase in value over time
Just like an old painting’s value increases with time, so does an NFT. Its blockchain characteristics ensure that it can’t be reproduced. So it’s impossible to have two NFTs with the same content.
While many have welcomed the recent technological boom, many experts believe that NFTs are a disaster waiting to happen. However, sports teams have already started using them to provide limited edition items for their fanbases.
Just like old baseball cards, NFTs are in a position to take over the world of sports collectibles.
With all this in mind, what do you think about NFTs? Are they worth a try?
