Non-Fungible Tokens - they're said to be one of the hottest trends today. But that's just it. Most experts are agreeing unanimously on one thing NFTs aren't a mere passing trend. Chandler Song, a master NFT investor, gives his exclusive take on the future of NFTs in 2022 and beyond.
NFTs are digital assets that can be bought or sold with cryptocurrency or digital currency. These assets can be anything - from a painting to a video clip. Chandler Song notes how every industry wants in on the action, be it real estate or gaming. In fact, the trading volume of NFTs shot up by 704% between just the second and third quarters of 2021.
Currently, their popularity is driven by a few main factors:
Democratization: Soon, the new version of the Internet, Web3, is predicted to take over the world. This new-age Internet is built on the same technology as NFTs and cryptocurrency - blockchain. As it is a decentralized system not owned by any one entity, it will bring about democracy, handing the power back to the people.
Status Quo: Owning NFTs is currently seen as the "in" thing. Like owning a fancy car or phone.
Tech craze: This exciting new form of investment makes use of cutting-edge technology, which in itself interests countless people.
These factors might have been enough to generate all the big buzz around the token when it launched. However, these aren't the only reasons why NFTs are expected to become the next big thing.
NFTs will become a new form of crowdfunding, which is set to revolutionize the art industry, says Chandler Song. Once the question of cold, money-minded executives no longer arises, artists will be free to create the kind of art that they and their loyal fans turned investors want to see. Secondly, they will solve the long-standing problem of plagiarism and duplication.
Gamers will be able to buy, keep, or sell the weapons, characters, clothes, etc., that they buy in one game. A promising new world of possibilities opens up for the gaming community.
Chandler Song also points out that as the interest and investments metaverse slowly rise, NFTs will become irreplaceable.
From Gary Vee to Bella Hadid, celebs, investors, and masses alike have jumped onto the NFT's wagon to earn their fair share of profits.