In the previous lessons, you’ve learned what an NFT is, a very brief history about them, and how they’re used.
This brings us to the million-dollar (or is it billion-dollar?) question:
Should you buy NFTs?
The short answer is: It depends on whether you see value in it or not.
Now the concept of value, of course, is highly subjective.
As with buying original artwork by a world-famous artist, a pair of authentic Nike Air Mags, vintage sports memorabilia, or shares of a company, value is in the eye of the beholder.
There are even websites, such as NFT Price Floor, that track the floor price, historical price chart, sales data and trade volume of the top NFT collections.
Some buy art for sentimental purposes or for social prestige.
Some purchase rare sneakers to add to their collection.
Some buy vintage goods at a bargain to flip them for a profit.
Some invest in startups because they see potential growth.
If you plan on buying NFTs for similar reasons, then good for you!
On the other hand, if you’ll be shelling out thousands of dollars to buy an NFT out of sheer FOMO, then you might wanna back up a bit.
In fact, back all the way up to the part where we talk about the risks involved in buying NFTs.
Don’t forget that art pieces or collectibles – be they physical or digital ones – can be challenging to authenticate and appraise.
Make sure you have a solid understanding of the NFT market and conduct your due diligence before forking over your money.
Just keep in mind that NFTs – heck, even blockchains – are still very relatively young technologies and industries.
Think Leonardo DiCaprio’s Titanic years before he gave us Django Unchained and The Revenant. It already looks legit, but its potential is unlimited.
For now, we could use more unified protocols and interoperability to help decrease transaction costs and increase NFT adoption.Regulations would not only protect NFT owners from speculative price swings, but they would also encourage more people to tokenize their real-world assets on the blockchain.
Developers can also increase security measures so that newbies and pros alike won’t get scammed by fake browser extensions and counterfeit NFTs.
Finally, appraisal standards would help participants price NFTs.
Once the NFT ecosystem has made progress on these hurdles, then we could be looking at a world where almost all digital and (tokens of) physical assets are stored and traded on global blockchains.