Can NFT make you rich? If you’ve been following the news, you’ve probably heard of Non-Fungible Tokens (NFTs) by now. They’re everywhere! In fact, I just wrote an article about them for Medium on how they can change the art world. But what exactly is an NFT? How does it work? And why should you care? Let’s take a look at some of these questions and more.
Can NFT make you rich?
The answer to this question depends on how you define “rich.” When I say “rich,” I mean financially free and able to do whatever you want with your life. In other words, not having to worry about money because you have enough of it saved up so that it doesn’t matter if you spend it or save it.
If that sounds like something that would make your life better, then NFTs may be the way to go. But if your definition of rich is more along the lines of having a big house with a swimming pool in your backyard (or maybe even a yacht), then NFTs aren’t going to get you there anytime soon—they’re still too new for anyone but early adopters who understand the technology well enough to invest wisely and manage risk effectively.
NFTs are also speculative investments; they haven’t been around long enough for us to know whether or not they’re going anywhere—and speculation isn’t always safe or profitable—but if history has taught us anything about investing in speculative assets (eBay shares come immediately to mind), then we know that some companies become wildly successful while others fail miserably during their first years on the public markets: A few will become overnight millionaires thanks largely to their lucky timing when investing early in these companies before anyone else knew what was happening.
NFT art has gone mainstream.
If you’re unfamiliar with the term, non-fungible tokens (NFTs) are a new form of digital art and collectibles that can be bought, sold, and traded on the blockchain. They’re one of many different kinds of crypto assets—digital assets that can be stored in cryptocurrency wallets like Ethereum or Bitcoin—but they’re unique because they each have their own individual characteristics; they are truly unique. You can think of them as the equivalent of real-world artworks that have their own identities and histories; an individual painting by Picasso will always be just that one painting, no matter who owns it.
The first NFTs were introduced by CryptoKitties in 2017 when users were able to adopt virtual cats as pets using Ethereum smart contracts (computer programs running on top of blockchain networks). From there, things got bigger: NFTs have been used as collectibles in games like Cryptopunks, launched within Fortnite Battle Royale’s Battle Pass Season 7 last year; used in blockchain-based MMOs like Axie Infinity; offered through companies like Rarebits for sale on their marketplace; used to create personalized crypto collectibles called non-fungible tokens; created by artists such as Jeff Koons and Damien Hirst for exhibitions at galleries around the world; sold through auction houses such as Sotheby’s New York City, which was curated by ConsenSys cofounder Joseph Lubin himself!
NFTs are tradable even after they’ve been sold.
The blockchain is a decentralized ledger. It’s immutable and transparent because it doesn’t have any central authority or single point of failure. The blockchain is also secure and trustless, as there’s no need to trust anyone else to keep your data safe. The fact that blockchains are permissionless means that anyone can use them—and you don’t need permission from anyone else in order to submit transactions on the blockchain either!
You can sell art or real estate as an NFT.
You can sell your NFTs to other people. This is a really cool aspect of technology that can be used for art, real estate, and even physical items such as cars and boats.
You can think of an NFT like a deed or title to something: it represents ownership in the underlying asset. If you own an NFT that represents real estate and want to sell it, then all you need to do is transfer that deed from your Ethereum wallet (or wherever else you store your crypto) into someone else’s Ethereum wallet (or wherever else they store their crypto). There are no third parties involved in this transaction; it happens directly between two parties over the blockchain network.
If someone buys one of your NFTs from your Ethereum wallet by transferring some Ether over the blockchain network, then they now own full legal title/legal ownership over whatever object or property was represented by that particular digital good.
You don’t need to know how to make art to make money.
You don’t need to be an artist, developer, writer, or musician to make money from your work. You can simply sell it.
The market is still young and speculative.
The market is still young and speculative. NFTs are a new technology, and they don’t have the same kind of infrastructure as traditional financial markets like stocks or bonds. If you want to buy an NFT, you’ll need a wallet first—and there aren’t many options yet (though some are starting to pop up). You can keep your wallet offline in cold storage or on a hardware device like Trezor or Ledger Nano X if you’re worried about security issues with online wallets—but even then, it’s important to remember that this is still all experimental technology! And because there isn’t much regulation or oversight for the crypto world yet (at least not in most countries), it makes sense that people are wary about investing their hard-earned cash in something so new and untested.
NFTs could change the way people invest in collectibles like art, but it could also be a bubble waiting to burst.
The first thing to know about NFTs is that they are still relatively new technologies, and they’re not yet mature or standardized. While the concept of blockchain-based collectibles has been around since 2013 and some projects have been in development since then, most NFTs have been launched over the last two years—and there are still many more being created every day.
This makes them an exciting but risky investment opportunity: while they could be worth millions one day, there’s also a chance they’ll be worthless before you even own them. (Would you buy stock in something you’d never seen?) As with any speculative market, it’s important to keep your expectations realistic and do your research before spending money on an NFT—or even looking into whether it exists at all!
Another risk associated with buying NFTs is the lack of interoperability between different platforms where those tokens reside; this means that if you purchase an item from one game or site (say “Game A”), it may not be possible for another person who owns that same item (“Item B”) from another game or site (“Site B”).
NFTs are still a relatively new concept, and we’re just beginning to understand their potential. They could change the way people invest in collectibles like art, but it could also be a bubble waiting to burst. Keep your eyes on NFTs for now—and maybe wait for prices to come down before buying some yourself!