Not too many people will dispute that a traditional stock, not NFTs, is seen as one of the safest methods for storing wealth, but this doesn’t seem to be the case anymore. The rise of smart contracts and blockchain technology has given way to new types of assets like Cryptokitties and PepeCash, which can generate profits without having to worry about taxes or (potentially) even regulation. These new types of assets, known as Non-Fungible Tokens (NFTs), are becoming more popular as they grow in popularity and offer interesting opportunities for those willing to take advantage of them. We’ll explore all the top reasons why these new virtual goods are proving to be a safe and profitable investment.
NFTs Are Regulated Less than Securities
One of the biggest deterrents for people to invest in cryptocurrencies is the fear of not knowing how long their money will remain theirs or what could happen if they get caught up in some sort of government regulation that may prevent them from accessing it. NFTs, on the other hand, are not currently regulated in most cases, which makes them a much more attractive investment. The fact that they can be used to represent unique virtual items also makes them more valuable than regular cryptocurrencies.
NFTs are Scarce and Cannot Be Duplicated
One of the biggest problems with traditional stocks is that they can be duplicated and there’s no real way to prevent someone from selling the same share multiple times. This isn’t an issue with NFTs, as each one is unique and cannot be reproduced. This gives them a certain level of scarcity that is lacking in other asset types.
They Can Be Used to Represent Assets Outside of Cryptocurrencies
CryptoKitties was one of the first mainstream games to integrate NFTs as a core part of its gameplay. The game lets users collect and breed virtual cats using Ether, which is an Ethereum-based cryptocurrency. This is just one example, but other games and platforms could soon follow suit and offer their own NFTs that can be traded for other benefits like extra lives or level unlocks.
They’re Very Similar to Physical Collectibles
One of the major reasons people invest in traditional assets like stocks and precious metals is because they already understand how those things work and why they may be valuable over time. Cryptocurrencies are still relatively new compared to physical assets, so it takes some explaining for to figure out what makes them valuable. NFTs, on the other hand, are virtual collectibles that work just like physical ones do. Because of this similarity, people who invest in these new types of assets have a much easier time understanding why they may be worth something over time.
People Enjoy Collecting NFTs
Another reason people enjoy collecting NFTs is because it’s a lot more fun than buying a traditional share of stock. Instead of having to deal with numbers and charts, users can sit back and watch their digital collectible grow in value while also admiring its unique design. You could even say that some people view them as works of art similar to what you might find at an auction house rather than purely financial instruments meant for trading purposes alone…
They Provide a Greater Sense of Ownership over Virtual Goods
There have been countless incidents in which people have lost or damaged their digital assets in the past, and it’s always so much more frustrating than when you lose an actual physical asset like a book or a DVD because there is no way to recover that type of loss without spending additional money to replace what was lost. NFTs, on the other hand, give users a sense of ownership that they can maintain even if the item gets damaged in some way. It means that your items will be waiting for you once you’re able to afford them again rather than being irretrievably gone forever. The fact that these unique assets exist a digital space makes them feel more real and valuable to the people who collect them.
They’re Ideal for Trading
One of the main reasons why NFTs are so viable as long-term assets is because they’re perfect for trading. Unlike traditional assets, users can buy and sell NFTs without any restrictions or fees. This makes it a lot easier for people to move their assets around and trade them for other benefits like game items or in-game currency.
They Can be Used to Create Unique Digital Experiences
NFTs have already been used to create some unique digital experiences that wouldn’t be possible with traditional asset types. The most famous example of this is CryptoKitties, but there are sure to be more examples like this in the future.
They’re Easy to Store
Because they exist in digital space, NFTs are really easy to store. All you need is somewhere to keep your private key safe and you can rest assured that your items will always be there for you when you’re ready to trade them again or use them…