Should I Own NFTs -1
The world of finance has recently taken huge leaps thanks to technology. Many ideas that used to be wishful thinking has indeed become reality and opened a new world for smart humans to tap into. Birthing so many more ways to make money other than the old traditional ways our parents and forefathers were used to. First came Blockchain technology and cryptocurrencies and even though they weren't exactly popular in previous times they have become a hot topic. But recently the buzz has shifted to an even more amazing part of the blockchain-NFTs. NFTs , the latest bride of Cryptocurrency like I called them in my recent article are collectible digital assets with increasing value and ability to take whatever forms it's creator desires.
Non fungible tokens as they are called are entirely different from the classics we are used to because unlike Cryptozoon or Bitcoin they can't be swapped as units but as an entire piece on the blockchain. Picture galleries and musuem with priceless art pieces but instead of galleries these art pieces are hung on different NFT platforms on the blockchain. With the recent buzz especially from very popular pieces like Crypto Punks that recently sold for $7.58 million as well as Jack Dorseys (Twitter CEO) first tweet that sold for $2.9million people are confused on whether to buy out of FOMO or simply ignore the buzz.
Well before you buy anything on the blockchain it is always important that you weigh the pros and cons to be absolutely sure you want to be a part of the trend. On this note I'll start with the onions because just like every other thing on the blockchain NFTs have their downside with the most obvious being their uncertain value. Well there's a saying that what goes up always comes down but we aren't entirely sure if NFTs are excluded from this rule. While we may be excited that in a couple of years that $30 worth NFT might become $80million what's the assurance that it wouldn't become worthless once again.
Another interesting downside is what you are actually buying. Contrary to the opinion of many buying NFTs doesn't give you copyrights to the piece i.e the creator can move on to create others or even better pieces thereby crashing the price. You only actually own a record that shows you own the token behind the original asset meaning this piece can be copied or sold as pixels or other form by the creator.
Thirdly we have the good old bad impact on the environment. Earlier this year crypto came under huge criticism over the amount of energy and type of energy used in mining major coins and since the same technology is employed in creating NFTs they also fall under this category. Most NFTs are on the Ethereum Blockchain and as the influx increases it is only a matter of time before they suffer huge backlash from our green avengers.
The inability to appreciate your million dollar piece is also a downside to owning NFTs. Unlike other priceless art pieces you can't sip expensive liquids while starring at them with your art inquisitive buddies. The joy of gazing that art piece on your wall or in your study might never be felt because of course it is on your eye straining piece of technology.
After carefully dissecting and explaining these cons , the choice to buy or ignore NFTs are entirely yours because we all know the blockchain space has always been a risk.