Top Reasons Why NFTs Are Viable Long Term Assets - Deepstash
Top Reasons Why NFTs Are Viable Long Term Assets

Top Reasons Why NFTs Are Viable Long Term Assets

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Top Reasons Why NFTs Are Viable Long Term Assets

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NFTs are scarce

The non-fungible nature of NFTs makes them valuable because they tend to be released in limited quantities:

  • Though one could see an NFT collection with 10,000 different models being minted and sold, they cannot be re-released once they are gone.
  • Traditional stocks can be duplicated almost infinitely, prompting people to sell the same share several times. However, NFTs are unique and cannot be reliably reproduced.
  • The unique factor of NFTs makes them more valuable with time, combined, of course, with the scarcity as mentioned above.

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  • If there are only an X number of NFTs available ever, then that means after all of them are sold out, it’s over. This is what’s known as absolute scarcity.
  • However, even inside the pool of available NFTs in a collection, there’s another type of scarcity: relative scarcitywhich can be an essential factor in determining if an NFT can be a viable long-term asset or not. In a group of NFTs, there’s only a finite number of illustrations with similar characteristics. If it’s a mummy NFT project, there could be a limited number of NFTs that have a specific trait or characteristic.

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NFTs create decentralized economies

NFTs are viable and have been promoting the creation of decentralized business.

  • Thanks to virtual lands and the Metaverse, we’ve seen decentralized real estate become a million-dollar business almost overnight.
  • Soon, decentralized service providers will use NFTs as their calling cards for their services.
  • NFTs can be catalysts for new economic models, as we’ve seen in minor ways with the Super Bowl, Coachella, and Flyfish Club.

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NFTs are already changing the gaming paradigm by seizing power from the big companies and handing it to the players.

Decentralized gaming works by developing games built on decentralized technology.

The play-to-earn model helps games make in-game rewards by playing the game and completing tasks. These rewards can be cryptocurrency, resources, and digital assets stored in the blockchain.

Thanks to blockchain’s tamper-free technology, your actions in-game are forever stored in the blockchain, so the NFT you obtained is also permanently there unless you decide to trade it or keep it somewhere else.

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NFT art can make you rich

NFTs make ownership easier to manage, thanks to the blockchain. Since minted NFTs are part of the blockchain, they cut off intermediaries and empower content creators.

Now, you’re able to create your stuff and sell it to those interested in them directly. A musician can sell proof of ownership of their song; a writer can sell their NFT books; a digital artist can sell their NFT art.

NFTs represent a revolution of art ownership, making it desirable to get into it if you’re a content creator. And it’s no secret that many NFT artists have made massive profits from selling their NFT art.

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  • Not everybody knows how NFTs work, but you’d be hard-pressed to find someone in 2022 who hasn’t once heard about the term.
  • NFT was the most searched word on online browsers in 2021.
  • Today, many big companies, brands, and business conglomerates are investing in NFTs.
  • The more mainstream they become, the more people will invest in them.

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NFTs are more appealing than stocks

People enjoy collecting NFTs because they enjoy purchasing art. Numbers, charts, and stock graphs hardly compare to mystifying digital illustrations, awe-inspiring videos, and gaming rewards.

NFT art collection is similar to a real-life art collection at an auction house.

All in all, an NFT is more than just a financial instrument. It’s a digital asset you can keep for personal use instead of something you want to sell later for a profit.

Of course, an intelligent investor can collect NFTs and also invest in stocks to diversify

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NFTs are being used as access keys to many events, such as Coachella’s lifetime passes. Soon, NFTs will be understood as more than pixelated illustrations or GIFs: they’ll become entry passes for events, clubs, and memberships.

This hints at the diverse ways NFTs can be used for marketing and promotion, making them viable assets for investments and tools to promote other services for companies and individuals.

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NFTs are excellent goods for trading

They are viable as long-term assets because they can be easily traded without restriction.

Their record of authenticity and proof of ownership provides owners with a sense of security around their assets.

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