The economy is ever-evolving, and with the emergence of cryptocurrencies, how consumers interact with producers is changing, too. The popularity of cryptocurrencies has created a new way to pay for things and sparked conversations about the true value of money.
While some are skeptical of this new payment method, others are referring to crypto as “the future of money.” As the popularity of buying and trading crypto has increased, a new form of value holding has emerged: non-fungible tokens (NFTs).
Unlike other modes of payment, NFTs cannot be exchanged for something of equal value, thus giving them the “non-fungible” name. One NFT cannot be traded for another because no NFTs have equal value.
NFTs are digital assets, usually in the form of digital art. They can be shared, but only one person can own a certain NFT. Public ledgers keep records of who owns these NFTs. Many are even collecting profit by creating their own NFTs and then selling them on online marketplaces.
NFTs are a unique investment. They are not incredibly easy to convert into cash because they are not purchased with cash, but purchased with cryptocurrency which then has to be converted into cash. Anyone can purchase an NFT by using cryptocurrencies on a dedicated online marketplace.
Sophomore Luci Patel shared her experience with the purchase of her first NFT. “I first bought an NFT because my friend was telling me about them,” she said. “Their prices have the ability to rise very quickly… and I thought it was a good investment”.
The current uprise in interest in NFTs brings new opportunities for those looking to be on the front end of investing in new things. Newly discovered investment opportunities can involve a high amount of risk but can also lead to a high reward.
Professional Crypto Investor Chris Weigel shared his story of how he started with crypto and what got him interested. “I first learned of crypto after I read an article about the possibilities of decentralized money. From there I started seeking online social trading groups,” he said. “I made my first crypto purchase, $2000 into Telcoin after reading about how blockchain could revolutionize international remittance. That investment went on to do 30x days later and I was hooked.”
After finding success in an interest, he developed a passion for investing in crypto and even made it his career. Weigel enjoys both the rewarding financial aspect and the flexibility this new venture provides.
Weigel explained his predictions for the growth of crypto over the next few years to come. “Crypto is a speculative asset class. Currently we are in a bear market as the macro markets are sounding alarms of economic depression coming. I think the growth of crypto over the next few years will be good; however, only regulated and compliant companies will survive in my opinion,” he said. “The benefits of being a professional crypto investor far outweigh any other sector I worked in before. The biggest win in crypto is being able to hold your own money.”
Because crypto was a new opportunity, Weigel has been able to soar within the industry, and get on the front end of things. He saw a new opportunity and took a chance on it.
Similar to crypto, NFTs also have great potential to grow in both popularity and value. In fact, there has already been such a large amount of growth in the purchasing of NFTs. In 2018, the market cap of global transactions involving NFTs was at almost $41 million; in 2020, it was up to $338 million. The growth of NFTs was eight times from 2018 to 2020, and would be even more if calculated today.
Jokes circulating on social media platforms dull the seriousness and future possibilities of NFTs. Although these jokes are being made, many believe people should keep an open mind. A couple years ago, people joked about cryptocurrencies. Now, people are quitting their full time jobs to venture out into the world of trading cryptocurrencies.
