The Actual Value Of NFTs Is Yet To Be Determined But Their Popularity Is Growing

NFTs (non-fungible tokens) have often been considered to be both an innovative and revolutionary technology. However, the argument could be made that we have yet to ascertain the true value of NFTs. This is because many celebrities and people of influence have often ‘hyped up’ NFTs to the point that their true intrinsic value may have been obscured.

This makes sense too, as, during the course of this year alone, Tom Brady has started his very own NFT company, CryptoPunks is being explained to everyone by Christie, Saturday Night Live (SNL) has been talking about NFTs (Elon Musk had even appeared as a host not too long ago to talk about cryptocurrencies and Dogecoin), Mark Cuban and Beeple are busy advocating for viable use cases for NFTs, and so on. Needless to say, NFTs have become massively popular in a relatively short amount of time.

What we do and do not know so far

Ever since NFTs initially burst onto the scene, we have learned much about non-fungible tokens. However, the opposite could also be true, in the sense that we really do not know as much as we should. At first, NFTs were not really taken seriously, only recently garnering mainstream attention when certain NFTs were being sold for ridiculous amounts of money. Furthermore, use cases for NFTs are still being worked on with regard to the blockchain industry. So, while NFTs have been the source for some fun, to be sure, the true potential of these non-fungible tokens has yet to be fully discovered.

Moreover, NFTs are a bit different from various other use cases pertaining to cryptocurrencies. Whereas Bitcoin (BTC) would normally be thought of as a store of value that is fungible in nature, NFTs would instead be uniquely created tokens that utilize Ethereum’s blockchain technology to show ownership of any given digital asset and do so in a manner that would not change as time goes on.

NFTs can evolve further

As aforementioned, it remains unclear as to what NFTs could evolve into, given enough time. The idea that records of ownership and agreements which would be immutably minted onto any given blockchain definitely has a lot of potential going forward as the world becomes increasingly digitalized.

Generally speaking, some of the more interesting use cases for NFTs beyond what we already have included the likes of tangible records and licenses, goods, and finally, real estate. Of course, any future success that NFTs could also have largely depended on whether its supporters stick around long enough to see it.