NFTs are on the rise making waves and headlines. Whereas Bitcoin is being regarded as the digital answer to currency in recent times, NFTs are now being hailed as the digital answer to collectables.
2021 has been the swell year of NFTs with Beeple topping the best-selling NFT artist list after the historic auction of an NFT titled “Everyday: The First 5000 Days” which brought the sale of NFTs into limelight.
Unfortunately, despite the boom of NFTs in recent years, many people are still confused as to what NFTs really mean and why they are making waves in the marketing industry.
In this short interview, a renowned investor, marketing pro and NFT expert; Jurgen Cautreels addressed the issue concisely.
Jurgen, What is the reason for the spike in interest in NFTs?
I would like to point out firstly that NFTs have been in the limelight way before now. However, the major boom commenced in 2021.
The major reason behind the sporadic growth and development is that they have attracted celebrities with large fan-bases and thus, more interest is drawn to the NFT marketplaces.
Do you think NFTs can be relied on for investments?
The first wave of NFTs centered mainly on the possibilities of having arts in digital forms. Conversely, they have grown beyond acting as certificates of ownership and are now value assets with a wealth of utility both in the physical and virtual world.
Also, there are lots of possibilities in the nearest future.
What are the key things to know before buying and selling NFTs?
Firstly, it is important to know what type of NFT you are interested in before diving into the world of NFTs. This is because the categories of NFTs are limitless and different markets cater for different NFTs.
Secondly, the liquidity and market volume should be considered since purchasing NFTs is significantly different from purchasing Bitcoin, which is always liquid and driven by large market volumes on crypto exchanges.
Lastly, the transaction fee should be given careful consideration, and this is understood as the additional costs that may be incurred in a given NFT transaction.
How can the value of NFTs be assessed?
Being a budding area, I know the most likely question going through the minds of many is how to assess the value of an NFT. While it may be easier to determine the value of a tangible asset, it may prove a bit difficult to determine the actual value of an NFT since it is still in its formative years.
However, the utility of an NFT is one of the major factors to be considered as it gives them immediate value. The rarity of an NFT is another factor that comes handy. People are more drawn to an NFT that is extremely rare and hard to get because of their intrinsic values.
What does the future of NFTs look like?
It is hard to say whether NFTs are the future of the marketing industry and whether they will be widely used in years to come, although, there is high interest in them at the moment as well as benefits. However, just like Bitcoin, they are gaining popularity and are expected to grow significantly in the coming years.