4 Reasons Why NFTS Will Skyrocket in 2022
Many experts are hailing 2022 as “The Year of NFTs” because a variety of reasons and market dynamics are pointing towards an unbelievable skyrocketing of the NFT market.
These non-fungible, one-of-a-kind assets are considered to be the next frontier of art and asset ownership thanks to their irrefutable record of all transactions. It means that can anyone can check and know for certain who the creators, buyers, and sellers of these tokens are. While the personal details of those people are never shared, their wallets are publicly trackable.
With that said, let’s look at some of the reasons why this unique and exciting class of virtual assets is going to launch into the stratosphere in 2022.
1. NFTs Can Represent Much More than Digital Art
Many people make the mistake of thinking that NFTs are digital arts and assets. While those are the most popular applications of these tokens today, they’re far from the only options.
A non-fungible token at its core is nothing more than an ownership record. It’s like a property deed that serves as proof of who owns the property. Even though a property deed is just a piece of paper, it can encapsulate the value of the real estate because this is how the ownership is managed.
NFTs are the same as they serve as a record of ownership for the underlying asset. In other words, the ownership record is what gets stored in the blockchain, not the underlying piece of art or any other asset itself.
Here’s why that’s a big thing. It means that you can use NFTs to represent the ownership of anything. From digital art and in-game collectibles to vehicles and acres of farmland, everything can be represented through an NFT because only the ownership data is stored on the database.
As the market realizes the true potential and implications of this mechanism, we’re going to see a huge uptick in innovative applications. For instance, companies are already starting to sell real estate NFTs, which means that you can even divide a property into 100 parts and then sell all the NFTs. The ownership will belong to all the holders, who can then get their share of the rent and price appreciation at the time of sale.
2. NFTs are Becoming Part of the Mainstream Culture
Just this month we saw big names like Justin Bieber spend upwards of a million dollars to acquire pieces from the iconic Bored Ape collection. So even though social media celebrities like Gary Vee were the first to join the NFT craze, Hollywood celebrities, sports athletes, and business people from every corner of the world are cashing in on the NFT storm.
However, it’s not just the famous and wealthy that are buying these non-fungible tokens. Whether you walk into the halls of a school or the premises of a networking event for farmers, the one asset that you won’t stop hearing about is the whacky world of NFTs.
When you think about it, it makes perfect because NFTs, unlike traditional art, reflect the rapidly evolving Internet culture and the interconnected world that we live in today. There are tons of small and niche communities, and memes and lighthearted art are the language of this digital-first generation.
This is also why many experts think we’re living in a meme economy, as memes are where our collective attention and the translation of our modern interactions take place. Wherever memes go, the modern consumers follow.
3. NFTs Offer Much More than Profits
You may think that NFTs are all about speculation-driven price actions and making profits. But as we elaborated in the previous point, these assets reflect the modern, fast-paced, and scattered world that we live.
There are lots of niche segments, each with its own individual tastes and preferred phrases and lingo. Mainstream art doesn’t hold the same sway over them as specialized pieces that reflect their side of reality.
As such, NFTs are enabling people to come together and live in a new reality where their passions can be part of their professional commitments. People are able to join communities with shared values and showcase their commitment by acquiring relevant NFTs.
Community and connection are a big part of the NFT revolution, as these assets express the rarest forms of human emotions.
4. NFTs are The New Rolexes and Lamborghinis
It may be hard to admit, but humans find great value in signaling status to other members of the community. Everybody does this. It’s the reason why people want to be the next millionaire and acquire expensive items like luxury watches, supercars, massive mansions, and bespoke highest-end clothing.
At the same time, the digital revolution is kicking in at full speed, as we’re starting the same amount of time in the digital realms as we do in the physical world. In fact, the time spent in virtual worlds is more than physical interactions when you consider all digital device usage.
Furthermore, we’re quickly moving to a time where the metaverse will eventually rise and grip the minds of billions of people from around the world. The pandemic has already shown us that work can be done entirely over the internet, without any need for lifeless commutes and hurtful office politics.
All of this means that the digital world will get more of our attention than the physical world in the coming months and years. But as games like Clash of Clans, World of Warcraft, and Fortnite have shown us, people will happily spend billions of dollars to buy virtual items that will help them stand out in the digital realms.
Since NFTs are likely to be integrated into all facets of digital life, people will naturally pay more and more money to acquire these assets and show them off to their friends.
Don’t Get Left Behind in the Great NFT Revolution
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Our platforms will help you make a profitable entry into Web3, including NFTs and metaverse. Learn more by exploring the following links: