NFTs are a new form of digital assets which provide ownership to the user. They can be traded, bought and sold on P2P marketplaces or on exchanges. The value of NFTs is not tied to any other asset such as the dollar or gold but instead it is based on supply and demand in the marketplace.
NFTs are valuable because they allow for more creativity when it comes to monetizing digital assets. For example, an artist could create a digital artwork that can be sold for millions of dollars with only one copy ever being produced.
But if the project doesn’t reach a critical mass, the entire market could crash and burn. There have even been reports of projects refunding investors after an NFT was sold for less than expected. The fact that there is more risk involved with this specific model does make it somewhat of a riskier bet, but it also makes these assets much more valuable. So in the end, an investor who isn’t scared away by these risks can potentially make a lot more with this type of asset than with a traditional cryptocurrency. Again, not financial advice and always DYOR! (Do Your Own Research)
One ideal use case for NFTs is that they are backed by assets in the real world, meaning that these assets can be bought and sold outside of the blockchain, which opens up a whole new market for people to invest in.
An example of this is Real Estate, whereby people can literally buy a house and the new owners will be given an NFT that represents that house. The actual rights of that house is contain within and via that NFT. An example of this could be seen in this tweet where a property in the US was sold for US$175,000 as an NFT. You can read more here :
https://twitter.com/unusual_whales/status/1582438467342307328?s=20&t=rwc2RyBO9XZ9h8mX_HijXg
For Gamers out there, NFTs will soon be integrating though with some major resistence from some big companies out there. Eventually however I believe, all games will have a Web 3 component as a basic standard, with NFTs part of the ecosystem and most probably the initial marketing.
Moreover every game is also an ecosystem where players can leverage NFTs to make their own digital assets, or “collectibles” as some called them. This gives developers the ability to create a marketplace of trading digital assets on top of their game.
Another area is Mus, which is a powerful medium that has the power to shape culture and human emotions.
NFTs are a new form of digital scarcity that can be used to create unique digital collections that include music tracks. This can be done by adding them to an art piece, or simply as the audio itself. NFTs in the Music industry are set to create waves and disrupt the current traditional ways as much as Spotify streaming services changed the now out dated CD’s and MP3 players! A couple of great projects in the Music Space are :
In the future, music will be more digital and there will be more digital musicians. There will also be a shift to live music and concerts on the Metaverse. Technology is advancing at such a fast speed now, that musicians like myself can push our songs live in the moment with a click of a button. This will change how people use music on-demand and create an entirely new industry for digital musicians.
