Cryptocurrency is an ever-growing phenomenon in the twenty-first century. The stocks of cryptocurrencies have grown to unprecedented numbers, and more and more people are discovering the world of blockchains, cryptography, and mining. Surveys have shown that 17% of the American adult population have investments placed in Bitcoin, with that number ever-increasing, as young people are shown to be far more trusting of Bitcoin, than of more orthodox investment methods.
The advent of cryptocurrency has paved the way for a drastic increase in faith in digital assets, so naturally other forms of digital assets have been popping up in recent years. Most recently, the one that has gained traction has been the non-fungible tokens phenomenon. Let’s take a look at what NFTs are and explain how they work.
Just What Are Non-Fungible Tokens
An NFT, non-fungible token, is a unit of data that is stored on a blockchain, the purpose of which is to provide proof of ownership of a given digital asset, by certifying it as unique. Non-fungible tokens can be used to represent works of art, video files, audio files, and other forms of digital files. While these files can still be accessed by anyone, the NFT holder has proof of ownership.
The non-fungible token market has seen a massive rise in popularity, as it reached $250 million last year, an amount almost triple of what it was worth before. As of 2021, the sales of NFTs surpassed $2 billion. So naturally, a phenomenon like this leads people to wonder how they can profit from NFTs.
How Can One Turn a Profit Through NFTs?
With the advent of trading sites like bitcoindigital.io, trading cryptocurrency has become easier than ever. With their use of Artificial Intelligence technology, these sites can predict the volatility of the market and provide an easy, beginner-friendly way to get into the world of cryptocurrency trading.
NFTs are a bit different. With the rise in popularity of cryptocurrency, so many NFTs are popping up, as companies, artists, and celebrities are launching their own NFTs, or discussing the prospect of doing so in the future. Not all NFTs are created equal though, so let us take a look at the best and most profitable ways through which people have profited from NFTs.
In sheer profitability, no NFTs come close in worth to digital artwork NFTs. This March, the history of crypto and the history of art met, intertwined, and subsequently changed, as one of the most popular, and respectable auction houses in the world, Christie’s sold the first-ever NFT work of art for a staggering sixty-nine million dollars. This was the first time that Chrstie’s has ever sold a work of fully digital art.
Artist Beeple, real name Mike Winkelmann, was the man behind the piece entitled “Everyday: The First 5000 Days”. The non-fungible token is not a single work of art, but rather a collage of five thousand tokenized images, which the artist was working on daily, over many years. Beeple’s record-breaking price is expected to be surpassed, as he was a relatively unknown artist up until this point. If other, well-established artists get in on the craze, the price is expected to surpass $69 million. With this in mind, many new artists are looking for ways to break into the NFT Industry, as it is expected that NFTs will do nothing but grow more popular, and profitable in the future.
Other Profit Methods
NFTs can really be used to represent any unit of data, so understandably many video game developers are looking into the concept of using NFTs to represent in-game assets. In 2021, a recorded $1.5 million dollars was spent in a single sale involving video game NFTs. Movie and music studios are also looking into the concept of NFTs for selling record previews or film trailers, and posters.
Overall the future of NFTs seems bright