Are NFTs A Good Investment?


NFTs are the future; if you said this phrase to some a few years ago, they would have laughed at you, but now it is no longer a joke. NFTs could be the future of the crypto industry, and they are the sole reason why many leaders, past and present celebrities, and many other investors are coming to the crypto industry. Its popularity has increased so much over the past few years.

The main reason for its sudden popularity is the gaming industry. NFTs are highly used in the gaming industry, and many experts believe that NFTs will play an enormous role in the industry. It has reached a massive audience due to the gaming industry, and once it reaches its peak, it could alter the course of the gaming industry.

So should you invest in NFTs? From the above discussion, you might think you should, but it is not that simple. You need to understand a few things before investing in this industry. First of all, you should know what NFTs are and how they work, and then we will give you some reasons why you should invest in this industry.

What are NFTs?

To know what an NFT is, you need to understand the concept of fungible and non-fungible. A fungible item is replaced with another item. For instance, if you cash a $5 bill to buy something, you have to exchange the dollar for another item. This is interchangeable. On the other hand, non-fungible is not interchangeable. If someone makes an NFT and sells it to someone, that person will have authority over the NFT. And it can’t be duplicated or replaced by another.

Non-fungible token

The reason why an NFT cannot be replicated or replaced is that there are not two NFTs that are identical. Each NFT has a unique digital representation. It is this uniqueness and distinction that matter in NFT trading. Additionally, more and more people are coming to NFT trading when they understand the concept of fungible and non-fungible. Following are some additional reasons why it is good to invest in NFTs.

Reasons why you should invest in NFT trading

In 2020, the NFT industry was very new to investors, but its popularity increased dramatically. In 2021, the market saw 3800% growth in one year. The business that was in the millions, roughly $69m in 2020, increased to $10b in 2021. Why is there such a large increase? Following are some of the reasons, and these are the same reasons why you should invest in the NFT market.

1- Ownership of the assets

When a creator creates NFT, he will have ownership rights even after selling that NFT. For creators, this is a massive win because there are rare agreements where the creator will retain ownership of an entity even after selling it. This means that if a person creates an artwork or something else special, he can profit from it without compromising the copyrights. The fact that you will own an NFT and no one else will have any interest in it (because an NFT is indivisible) is the primary reason why you should invest in NFT trading.

2- Unique and authentic asset

An NFT is created on the blockchain, and it is totally unique in its own way. Each NFT has a record on the blockchain network, which is why these NFTs are unique and authentic assets. Each NFT is rare in its own way, having a unique and one-of-a-kind asset class. This helps the creator and seller sell the asset in limited numbers instead of selling it in bulk. The lower the number of assets sold, the higher the asset’s value. This is the precise reason why the NFT industry has great potential. When you hold an NFT, you hold a unique entity whose value will increase with time. The more unique an asset, the greater will be the profit.

3- A decentralised way of selling and buying

The NFT market is decentralized. It means that there would be no third party between the buyer and the seller. They can mutually agree on the price of the asset and exchange money through the blockchain. On the other hand, in the real market, when an artist wants to sell their assets, they will need to talk with an agency to market their art. The blockchain eliminates this third party, and the creator will directly benefit from the sale of their asset.

4- NFTs are immutable.

NFT is immutable. It means that nobody can modify, delete, or edit it. The data is created on the blockchain, and it will remain immutable there as long as the blockchain is there. The decentralisation helps the NFT remain unchanged on the networks of nodes all over the world. Each node has an identical database record, which cannot be altered no matter what. Due to these unchangeable records, the NFT will last longer (till the blockchain is there), making the NFT desirable as both a collectible and an investment.

5- Simple to buy and sell

Selling and buying an NFT is very easy. As mentioned above, you do not need a third party, and the buyer and seller can do a one-to-one deal. Additionally, the value of the assets increases day by day because they have immense resale value. The buyers can benefit from this immense resale value, making the NFT industry attractive for investors.

Some drawbacks of NFT

Each industry has its pros and cons, and crypto is no exception to this rule. The NFT industry has some cons, but they are not related to buying and selling.

1- NFT needs more energy

In a world where everyone is talking about energy and the environment, NFT generation needs more energy than a typical home would need for one and a half days. It is because an NFT is supported by the Ethereum blockchain, which uses proof of work and requires extensive energy. However, Ethereum is now moving towards a proof of stake, which will require less energy for generating NFTs. This might happen at the end of 2023 or the start of 2024.

2- You will need Eth for buying and selling an NFT

As most NFT sales happen on the Ethereum blockchain, you will need ETH to buy or sell an NFT. So if you wish to buy an NFT, you will need to have ETH in your account; the U.S. fiat dollar won’t do the work. This might lengthen the process of buying an NFT.


The world of NFTs is a rapidly growing and exciting field. With the ability to tokenize unique digital assets, NFTs are changing the way we think about ownership and value in the digital world. This blog has provided an in-depth look at what NFTs are, how they work, and the various use cases for them. Whether you’re an artist looking to sell your digital creations, a collector looking for unique digital items, or just someone interested in technology, NFTs are definitely worth exploring. It will be exciting to see how technology evolves in the future and what new possibilities it brings.

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