Top 10 Reasons You Should Use NFT
NFTs have become a hot topic in the world of digital art and collectibles and you can’t ignore the buzz around the topic. These digital assets have the potential to revolutionize a variety of industries. You can use NFTs for everything from raising funds for a charity to actually raising money for your business because of the humongous market potential. The most popular NFT marketplaces in the world were valued at $13.3 billion in January 2022. And despite the drops that we’ve witnessed in 2023, the demand for NFTs is still high.
So, if you’re interested in investing in NFTs but still confused about the benefits of NFT, this article serves as an informative guide. We’ll share 10 compelling reasons why you should be using NFTs in your business or projects.
Why Choose NFT?
NFTs have the potential to provide authenticity to own unique digital assets such as artwork, collectibles, etc in the web 3 space without worries about your work being replicated or replaced. It provides the rarity that traditional digital assets lack. Moreover, you can also tokenize physical assets, such as real estate and collectibles, and monetize your work by selling them.
As a master of NFTs, we can confidently say that there are numerous reasons why one should choose NFTs. The top 10 reasons are discussed below:
1. Provenance and Authenticity
One of the biggest benefits of NFTs is their ability to provide proof of ownership and authenticity for digital assets. Each NFT is unique and cannot be replicated, making them perfect for verifying the authenticity of digital art, collectibles, and other valuable digital assets.
2. Empower Artists
Artists have traditionally been at a disadvantage when dealing with publishers, producers, and auction houses that often require them to relinquish control over their intellectual property (IP) and limit their ability to monetize their work. With NFTs, creators have the opportunity to take back control of their creations by minting them on a blockchain and selling them independently. This allows them to retain ownership of their IP and have a say in how their work is used. When purchasing an NFT, you are directly supporting the artist and their creative vision.
3. Rarity and Scarcity
The desire to own something unique is one of the reasons why NFTs have become so popular.
NFTs are, in many ways, the digital version of physical collectibles, just a 1952 Mickey Mantle rookie card that was sold for $5.2 million. Its worth is purely dependent on the history, cultural relevance, fandom, and the rarity it represents – not the cards. NFTs are also popular because no one else can replicate your art.
Artists and creators experiment with many ways to increase the scarcity of their NFTs to make them even more desirable collectibles. Bored Ape Yacht Club or Azuki, are some good NFT examples of scarcity as they have a fixed supply of tokens and each token has its own algorithmically generated rarity traits, making them more valuable.
There’s no limitation in minting NFTs. You can create a wide variety of digital assets, such as images, videos, audio, gifs, games, and even 3D models.
NFTs are built on blockchain technology, which means they can be easily traded and stored on a variety of different platforms. This interoperability makes it easy for creators and collectors to buy, sell, and manage their NFTs.
6. Provides Investors with more Liquidity
Tokenizing assets allows investors to have greater control over their assets when they need it. An example of this is when a virtual land owner chooses to rent out their virtual space to advertisers or influencers for a fee, while still maintaining ownership of the land. In this scenario, the virtual land remains the property of the owner but a portion of it is transformed into rent, providing liquidity.
Because NFTs are built on blockchain technology, their transactions are publicly visible on the blockchain. This transparency can help build trust and confidence in the authenticity of the NFT and the assets it represents.
8. Smart Contract
NFTs are powered by smart contracts, which allow for the automatic execution of specific actions when certain conditions are met. This makes them useful for a variety of applications, such as creating virtual real estate or in-game items that can be traded among players.
9. Community Building
One of the most fascinating aspects of NFT ownership is the sense of community and connection that comes with it. For many collectors, buying an NFT is not just about owning a unique digital file or making a quick profit, but about feeling a sense of belonging and identity.
Many creators have developed their NFT projects into thriving communities, and because blockchain technology allows creators to see who is collecting their NFTs, they can offer exclusive experiences and perks to NFT owners. Thus, these communities can drive engagement and interest in the assets, which can in turn drive up their value.
10. Investment Opportunity
As NFTs gain more mainstream acceptance, they are becoming an increasingly popular investment opportunity. Many investors see the potential for NFTs to become a new asset class and are looking for ways to gain exposure to this emerging market. Some NFT collectors are more interested in owning an asset that will appreciate in value. Just like traditional art, they flip their NFTs for profit. In March 2021, digital artist Beeple (Mike Winkelmann) sold his “Everydays: The First 5000 Days” composite for $69 million at Christie’s. At around the same time, a group of financial traders attempted to torch the Banksy painting worth $95,000 to increase the value of the artwork and sold it as an exclusive NFT.
The investment opportunities are endless with NFTs. You only need a professional NFT consultant by your side who can guide you along the journey.
So Should You Use NFT?
Why not? The benefits of NFTs are varied and powerful. They have the potential to revolutionize the way we think about digital ownership, authenticity, and above all investment for a profit. As the market for NFTs continues to grow, it’s worth considering using NFTs as part of your business.