Have you ever wondered if NFTs are all bark and no bite? When there are a lot of negative opinions floating around NFTs, especially from people who don’t even know what NFTs are, it’s obvious that a lot of misinformation about NFTs has spread like wildfire. And we are here to bring it down, if not diffuse this fire entirely, by setting the records straight!
Here is to us busting the top 3 baseless, but not so surprising myths about NFTs!
1. Myth#1 NFTs are worthless
Just when you think, “there’s got to be no way that has any value,” people don’t fail to surprise us. Who’d have guessed that a four-hour film of a glass of milk sitting on a table would garner millions of views and likes on YouTube? Heck, it even got monetized! The message is that the value people place on something determines its worth. And NFTs are no different. Yes, a couple of NFTs aren’t worth their money, or even worth a penny. That isn’t to say that all NFTs are worthless. In fact, if people decide that gold, which is considered safe heaven, is no more of any value, it becomes worthless too.
So, why do people value NFTs? There are numerous subjective reasons, all of which are equally valid. Someone who is a die-hard LeBron James fan, for example, may find his NFT invaluable. Simply because he admires him! The Bored Ape Yacht Club NFT may appeal to someone who values exclusivity because it gives access to its private parties. As you can see, NFTs are valued and hence has some worth to them!
Myth#2 NFTs are a bubble yet to be burst
People think NFTs are a bubble yet to burst. This very notion persists because of how some people have gotten rich overnight by owning the best NFTs. Nothing can be too good to be true, right? But again, there is only a hand full of NFTs that fall into the “too good” category. Just like how there are only a handful of stocks that are multi-baggers.
Not to forget, when something is a bubble, it has to benefit some party. Yes, one or two NFTs might have ridden the bubble wave, where someone’s loss was another person’s gain. But extrapolating that to all NFTs is baseless as most NFT creators aren’t even rich. Most NFTs are growing their worth steadily over time, just as they should! So not all NFTs are a “Get Rich quick tool,” and even with the overnight successful NFTs, not all are a bubble that will burst.
Myth#3 NFTs are a fad and are useless
It’s ironic that people think NFTs are useless, as the very thing that drives them forward is their use-case. The fact that music albums can be made available without giving up ownership to a production house appeals to artists. They see the opportunities NFTs have opened up to them. Just like how YouTube paved way for people to be seen and heard without having to appear on TV. It is freedom, anonymity, and exclusivity that people yearn for, which also happens to be NFT’s USP. So, do you still think a viable solution, such as NFT, to an age-old problem that we just mentioned is useless? We don’t think so. And, as for them being a fad, unless someone comes up with a better, alternative solution, NFTs are here to stay!
Bottom-line
Now it’s up to you to fall in or out of love with NFTs. But if you do decide to go on a quick date with an NFT before entering into a long-term relationship, here’s an article on a step-by-step guide to court NFTs (aka how to buy NFTs)
Just let us know how it went?
Disclaimer: The information provided in this article is not intended to provide investment or financial advice. Investment decisions should be based on the individual’s financial needs, objectives, and risk profile. We encourage readers to understand the assets and risks before making any investment entirely.
