Recently, people often tell me that "NFTs are dead, no one is playing with them anymore," and some even say, "Those who buy NFTs are just paying a tax on their IQ." All I can say is that what you see is just the surface phenomenon! NFTs are not dead; they have just entered a stage of rational development. Today, I will break down the core value logic of NFTs for you and see where the opportunities for the future really lie!
First, we need to clarify one question: What is the core value of NFTs? Many people think that NFTs are just a picture, but that's not the case. The core value of NFTs is "digital rights confirmation." Through blockchain technology, it gives digital assets unique ownership and traceability. This means that digital assets finally have the same scarcity and uniqueness as physical assets.
For example, the images, music, and videos we usually download online can be copied infinitely, without any scarcity. But NFTs are different; each NFT is unique. When you own an NFT, you possess the sole ownership of that digital asset. This is the core value of NFTs.
So why have many NFT prices dropped so much now? The reason is quite simple: the early NFT market was too crazy, with many NFTs that had no actual value being inflated to sky-high prices, which was a bubble. Now that the bubble has burst, the market has returned to rationality, and those NFTs without actual value are naturally unwanted. However, this does not mean that NFTs themselves lack value; rather, it highlights the truly valuable NFTs.
The future opportunities for NFTs mainly lie in three areas: first, the art field, where many well-known artists are beginning to enter the NFT space to create digital artworks. These digital artworks have high artistic and collectible value, with great potential for appreciation in the future. Second, in the gaming field, NFTs can serve as items, characters, etc., within games, allowing players to enhance their gaming experience through the purchase and trading of NFTs. Moreover, these NFTs are personal assets for players, which can be liquidated at any time. Third, in the physical economy, many companies are starting to combine NFTs with the real economy, such as using NFTs as proof of product traceability or membership rights. This not only enhances the credibility of products but can also bring new profit models to enterprises.
Some might say, 'I want to invest in NFTs too, but I don't know how to choose?' Here are three suggestions: First, look at the project's team background and choose those with endorsements from well-known artists, gaming companies, or enterprises. Second, examine the project's actual application scenarios and select those with clear applications, avoiding projects that consist of only an image. Third, manage your investment position well; do not invest all your money into NFTs, as the NFT market is still in a developmental stage and carries relatively high risks.
Lastly, I want to say that NFTs are one of the important applications of blockchain technology, and their development prospects are very broad. The market is currently in a phase of rational development, which is a good time to lay out strategies. Follow me @链上标哥 to avoid getting lost!
