Technology has revolutionized the world in several ways. The question here arises how far away will the technology go when it comes to transforming the way customers see the world? Lately, blockchain technology has started a new trend in the world. All the accumulators and investors are paying millions of dollars to buy digital collectibles, today known as non-fungible tokens NFTs. If you are interested in bitcoin trading, visit https://bitcoin-champion.app/ to acquire an utter guide to crypto trading.

Non-Fungible Tokens, A Yes or No? 

Non Fungible Token, Nft, Blockchain, Technology, Token

Whenever you purchase a non-fungible token, you invest in yourself. At the end of the day, there is a huge secondary market for art no matter if the work is physical or digital. The same is with investments, there are several pros and cons to think about before investing your savings in something digital.

Pros of Non-Fungible Tokens

Below are some of the advantages that investors focus on when they purchase or invest in non-fungible tokens (NFTs). 

Price Increment

With every investment, there is always a chance of increment in the price of the investment you have made when you purchase the tokens. For instance, CryptoPunk #3100 was sold for $2,127 in the year 2017 on July 6th. The investor who was the owner of the artwork did not agree on selling his art until March of 2021 though that person got several offers. 

Even so, the collector is likely going to do backflips thinking and considering over $7.5 million profit on investment they have earned when they sold it out. 

Being Owner of Unique Tokens

The digital collectible people purchase are non-fungible, which tells us that these are irreplaceable and unique. People get good vibes when they get something or own something that is only one of its kind, no matter if it was a painting, furniture, digital picture, audio note, or any sort of virtual asset. 

Enthusiasm and Pleasure

When you purchase something unique, you get a rush of positive feelings. There is just a huge amount of excitement centered around all-around blockchain technology presently. Many people believe that this technology could be as huge as the invention of the Internet was.  

This is an exciting concept and through purchasing a non-fungible token, you can be actively participating in the evolution of technology happening all around the globe. 

Data Registry

The records of legitimacy and ownership proof of precious artwork are quite difficult to manage and maintain. This is the point where non-fungible tokens steal the show. Prevailing on the blockchain technology permits direct ownership records of all non-fungible tokens. This means that the digital artwork or piece should supposedly never have to be subject to stealing or have its legitimacy put in doubt. 

There are still some people who think that this technology will not be the megahit of the year 2022. On the other hand, the other people have complete faith in this project and believe that this technology will bring a much better way to handle and regulate sensitive data and information with time. 

Cons of Non-Fungible Tokens

There is no doubt that Non-fungible tokens are stimulating. But then again some serious disadvantages can risk your money. Some of the most prominent cons are mentioned below. 

Physical Art Controversy 

For owning physical or digital arts, people have different reasons. Physical art cannot digitize. There’s an appeal to observing a unique artwork is in your sight but your tokens are unable to provide it to you.

Unpredictable Prices 

Surprisingly, professionals have also found non-fungible tokens quite confusing. The very first thing that blows up the mind is that when you are purchasing an art piece, you are still not going to have the copyright to that art piece. 

People all around the world can find hundreds of copies of those art pieces all over the internet. What’s more confusing is that there is nothing that can stop them from copying and pasting this data or files over the internet. 

When people purchase these artworks, they only own a record that tells them that you own the token of the original asset only. 

Ecological 

The environment has been a hot topic of many debates in the past few years. Any type of record or data entered into the blockchains of Ethereum cryptocurrency demands huge calculations. This needs the utilization of a major amount of energy. In simple words, the worldwide business and trading in NFTs are not environment friendly. 

Conclusion 

NFTs are considered fun because they offer people to own something on blockchain technology that is not just a cryptocurrency. But that investment is a very risky asset. For investing in NFTs, buy low price NFTs with keeping the mindset that you are enjoying just getting involved, nothing too serious. 

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Kshitij does business research and content writing for VCBay. Pursuing BBA from Symbiosis Center Of Management Studies (SCMS) Pune, he is skilled in Financial Modeling, Stock valuation and Microsoft Excel. He is passionate about Entrepreneurship and Finance.

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