NFTs are Viable long-term assets because NFTs are in the news more than ever before, while they may still be misunderstood by many, you’re probably at least somewhat familiar with them by now.
NFTs are becoming increasingly popular within the blockchain space and may soon become the norm due to their potential benefits over traditional fungible tokens.
What are NFTs? They’re assets on a blockchain that have been given an identity, which means they can represent physical assets like real estate, abstract assets like loyalty points or even personal assets like those in your video game collection.
Here are Top 7 reasons why NFTs are viable Long-Term Assets.
1) They Are Tradable
Cryptocurrencies have been designed in such a way that owning them is easy. These assets can be traded and exchanged just like fiat money.
As such, it is possible to pay someone in terms of cryptocurrency. Of course, converting cryptocurrency back into fiat currencies might involve some hassles and expenses but, overall, trading and exchanging cryptocurrencies can be pretty simple.
NFT owners also get benefit from being able to store these assets safely because they do not depend on a central third party to secure their digital tokens. That is why NFTs are viable long-term assets.
2) Their Supply is Limited
Similar to how more gold is mined over time, cryptocurrency networks can increase their supply by adding new tokens.
These new additions take time to reach circulation, however, and until they do, a single token’s price may rise or fall depending on demand.
As an investor, it’s your job to know when these changes occur so you can make wise purchases at opportune times.
3) They Can Be Secured in Secure Wallets
As long as your digital asset is stored in a secure wallet, it can’t be stolen by hackers.
It also can’t be stolen if it gets lost or forgotten somewhere – if you lose your keys and someone finds them, they won’t have access to those assets because those keys aren’t stored anywhere but on your device.
This gives you a great deal of security and safety that traditional property doesn’t offer. one of that reason NFTs are Viable Long-Term Assets.
4) They Are Owned in Single Ownership
Unlike other assets, with non-fungible tokens, such as Cryptokitties, each token is its own entity. If you have a CryptoKitty, you can be 100% sure that no one else owns it.
It is an asset that is owned in single ownership. This means it will be easier to guarantee its value compared to a collectible like art or even stocks of a company that has shareholders. one of that reason NFts are Viable long-term assets.
5) They Are Divisible
If a cryptocurrency is divisible, it can be used across various asset classes. For example, if you have 1 BTC but want to purchase 5 apples, you would need 0.2 BTC worth of currency.
If you held an asset that was divisible, instead of selling off your whole balance for apples (which may decrease in value), you could transact using as little as 0.05 BTC and still buy five apples, leaving more money on hand for other goods or services.
6) Ownership Can be Transferrable
Non-fungible tokens (NFTs) can be divided into smaller portions and resold. It is not as easy to do with fungible tokens, as fungible tokens cannot be subdivided without changing their identity.
You could sell your ownership of a particular Cryptokitty, for example, which means that you no longer own that specific Cryptokitty but you still own an interest in all of them. This is another reason Why NFTs are Viable Long-Term Assets.
7) They Have Utility Outside of Trading
Most non-fungible tokens (NFTs) were created to be traded, but some games and platforms use their unique tokens as a way to unlock game levels or items.
For example, CryptoKitties uses them as collectible versions of existing characters; and Ethereum Name Service allows users to link their personal identities to their Ethereum wallet addresses.
With ENS, users can create a URL that points back to one of their wallets, so others know who they’re dealing with.
Q & A
Why NFTs are viable long-term assets?
NFTs are viable long-term assets because it may be difficult to evaluate a digital asset or characterize its value. Most of the digital assets have historical price data and most people don’t know the demands for each of them.
Non-fungible tokens (NFTs) are assets that cannot be broken down into smaller pieces—you can’t mix and match them. This makes them similar to physical assets like real estate, fine art, and jewelry; they’re not divisible. But just because they’re immovable doesn’t mean they won’t be desirable in years to come.
Why are NFTs a good investment?
You don’t need to do any work beyond buying an NFT. You can leave your asset and let it appreciate in value, or you can trade it for another asset—there’s a lot of liquidity in the market for exchanging NFT assets.
The first reason why you should invest in Non-Fungible Tokens is because there’s a lot of potential value to be unlocked by using blockchain technology to capture and verify digital property.
Also, gaming is one of the most interesting industries that can take advantage of these virtual assets. A game like Fortnite has a huge community around it and they would all love to trade skins with each other.
This makes them ideal for unique collectibles on blockchain platforms.
Lastly, there’s already an existing market for non-fungible tokens (NFT) created by companies like CryptoKitties. If CryptoKitties can create such a successful virtual asset, then why not try building a platform that allows others to do it as well?
How are NFTs viable?
Non-fungible tokens (NFTs) are ERC-721 tokens that do not represent fungible assets like coins, or securities. Most games/dApps use them because they make sense for in-game items such as weapons, badges and clothing.
However, there is a lot more value in non-fungible items than just being used for game assets. The big questions when it comes to decentralized applications is how will they be used.
There have been several issues that occur with Ethereum smart contracts, these include; high gas fees, scalability limitations and also problems with orphaned blocks.
These issues can all make developing and deploying smart contracts a challenging affair. Because of these roadblocks it’s hard to see just how exactly many of these dApps can be practically viable in any meaningful way. Thats why NFTs are viable long-term assets.
The good news is that there has been increasing interest in using non-fungible tokens (NFT) as a solution for many of these issues but only time will tell if they’re more than just a gimmick… or if we’ll see mainstream adoption for them anytime soon.
What are NFTs and why are they worth so much?
Non-fungible tokens (NFTs) are blockchain’s response to digital collectibles. Non-fungible is used to describe a good that is not interchangeable with other identical goods, just like how you can’t replace your pinky finger with someone else’s. Because each NFT is unique, they provide new opportunities for engagement and marketplaces.
Best NFTs to invest in long term
Below we have some of our favorite long-term investments in crypto. These options provide you with passive income, allow you to hold a diverse array of crypto assets and they don’t require a lot of maintenance or knowledge to keep running once deployed.
They also should provide liquidity if you ever need to sell your tokens but in most cases, they will never be able to be sold!
If you’re considering investing in a non-fungible token (NFT) long term, you have to look at 3 main things: market cap and competition, how they will be used, and real world use cases.
With that in mind, these are some of the best tokens to invest in right now as long term assets. As a disclaimer, these aren’t meant to be investments and should only be considered by those who know what they’re doing with their money. That being said… here we go!
1. CryptoKitties – One of the most well known NFTs out there is also one of my favorites for several reasons. First off, it has a huge market cap at around $300 million USD which means it can be bought and sold easily on most exchanges like Binance or Coinbase Pro .
It also has some cool features like allowing users to breed two kitties together to create unique offspring. Finally, it’s made partnerships with many big name companies including Axiom Zen , which was responsible for Cryptokitties original development and design.
These kinds of partnerships help drive adoption which is vital for long term growth. As an added bonus, they even have their own website where you can buy and sell your kitties!
2. Decentraland – Decentraland is another great choice for those looking to invest in NFTs long term. It’s already got a huge market cap at over $200 million USD (at time of writing) and continues to grow each day.
The best part about Decentraland is that it provides an entire virtual world where people can buy land parcels and build whatever they want on them! Think Second Life but better!
Is flipping NFTs worth it ?
The resale value of a non-fungible token (NFT) depends on whether you hold it as an investment or use it within an application. If you intend to hold onto your NFT, first consider that its value will depend largely on speculative factors.
If you’re buying and holding an NFT in hopes of selling it later for more than you paid, then its success will be tied to factors like market demand, supply constraints and general market conditions.
On the other hand, if you plan to use your NFT within an application and don’t care about potential future price fluctuations, then whether or not it’s profitable to flip will depend largely on how much money or time has been sunk into growing adoption of that particular platform.
Will NFTs go up in value ?
One of the biggest advantages of non-fungible tokens (NFTs) is that each one is unique, even if it’s a copy of an identical digital asset. This means that even if you own a specific NFT, there will always be something special about it that separates it from any other identical asset you may have. This makes them great long-term assets.