Skip to main content

Experts warn: NFT collectors can lose everything



The NFT hype has been going on since the beginning of the year. While the industry is still in its early stages, digital collectibles have reached over $ 6.2 billion in sales since 2017. This is shown by data from NonFungible - a website that tracks sales of NFTs. Digital art, on the other hand, generated sales of more than 1.9 billion US dollars.

Jon McCormack is a computer science professor at Monash University, Australia. He explains why the NFT sector is mostly made up of collectibles and works of art:

There can only be one copy of a particular work of art. However, digital art is easy to copy. For this reason, NFTs serve as additional certificates of authenticity and prevent counterfeiting.

While there are numerous success stories in this area, experts still do not believe that collecting NFTs is a good investment. Your biggest concern is that the timing is not ideal to get into the market. According to the researchers, the NFT market has moved too fast due to the massive hype and speculation.

Data from DappRadar supports these claims. Trading volume in NFTs grew 38,000% year over year, reaching $ 10.7 billion in the third quarter of 2021.

Collectors shouldn't buy NFTs because of the hype

Commenting on this rapid growth, Michael Every, Rabobank's director of financial research for the Asia-Pacific region, said the technology behind NFTs is useful. However, he does believe that current usage is just a series of crazy bubbles associated with ugly artwork.

That could be apotheosis, the culmination of the bubble paradigm. That worries me deeply. Even if I fully understand the dynamic that drives younger people in particular.

Vincent Co-Founder Evan Cohen said many new entrants in the NFT space are eager to make a profit. While he acknowledged that people can make a significant amount of money trading NFTs, Cohen believes that entering the NFT market in the hope of profit is risky.

He advised investors to:

Don't buy it just because it's an NFT. Buy it because you like art. Or because you think the collector's item is cool. Or because the community is cool. You should participate in the asset, not the underlying technology that powers it.

Volatility in the NFT industry is a big problem

Experts also pointed to the volatility that makes them skeptical about whether NFTs are ideal investments. Therefore, the volatility is because most of NFTs in cryptocurrencies are priced prone to wild price fluctuations.

To explain why he doesn't think NFTs are ideal investments, Every asked this question:

Who wants to put their pension in an asset that's worth $ 1,000 on Monday, $ 1,000,000 on Tuesday, and $ 1,000 on Wednesday?

It would be a challenge to retire on such an income. And because of such volatility, NFT investors can win or lose anything just as quickly.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
Upland - Collect Digital Properties & Test Your Skills
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

BlackRock launches crypto ETF, certifies massive growth potential for crypto market

  Influential asset manager BlackRock has launched a blockchain index fund (ETF) that offers investors a way to invest in the crypto industry without having to invest directly in related cryptocurrencies. Accordingly, the world's largest asset manager, which currently has assets worth almost 10 trillion. US dollars managed, the so-called Blockchain and Tech ETF (IBLC) was launched this week. The $4.7 million ETF does not invest directly in cryptocurrencies or crypto investment products, but instead tracks various companies within the crypto industry. The ETF is made up of 41 different securities, of which the American crypto exchange Coinbase accounts for the largest share at 11.45%. They are followed by the Bitcoin ( BTC ) mining companies Marathon Digital Holdings (11.19%) and Riot Blockchain (10.41%). To still leave room for future investments in the crypto market, the ETF has a 9.15% cash component in US dollars. In addition to the launch of the new ETF, BlackRock has also publ...
Post a Comment
Read more

Not a bear market: According to the analyst, the current BTC decline is the same as in previous Bitcoin cycles

  According to one analyst, Bitcoin is behaving the same overall this year as it has in previous cycles. Bitcoin ( BTC ) will have “at least one more boost higher” before hitting all-time highs this halving cycle, analysts are currently saying. The well-known analyst TechDev has spoken on Twitter about the current state of BTC and said that contrary to many opinions, nothing unusual has happened in BTC/USD in 2022. Bitcoin in 2021: Nothing to see here Sentiment has also taken a hit, falling 40 percent from November's all-time high of $69,000. There is still “extreme fear” in the bitcoin and altcoin market. TechDev, known for his bullish views on Bitcoin, sees no reason to worry. He analyzed the new wallet addresses in relation to course behavior and shows here that the scenario from last year was by no means an isolated case. Back then, the number of new addresses made lower highs while the price made higher highs. "In 4 of the 6 corrections, there was divergence with price ma...
Post a Comment
Read more

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more