20 Reasons why NFTs are Worth the Hype
As discussed over at runrex.com, NFTs are the latest fad in the tech world with almost everyone talking about them, and certain digital artworks selling for eye-watering amounts. The question many have been asking is if they are worth the hype. This article will look to highlight 20 reasons why NFTs are indeed worth the hype.
They create value for the tokenized asset
As is covered over at guttulus.com, NFTs create a medium whereby physical objects like artworks can be tokenized, thus eliminating the duplication of such artwork and limiting ownership to the artist. This in turn creates scarcity for the art and hence, value for it, which is why NFTs will continue having value and are worth the hype.
They provide investors with more liquidity
Tokenizing assets gives investors more liquidity over their assets when they need it as outlined over at runrex.com. The fact that NFTs provide investors with more liquidity is yet another reason why they are worth the hype and are here to stay.
A paradigm shift means they are here to stay
When you think about unique things you value like photos, videos, audio recordings, collectibles, or intellectual property, and you imagine how a digital ledger (blockchain) can immutably store all those items as NFTs and help solve how to value, manage, or transact with them, then you can see how NFTs could represent a paradigm shift when it comes to how we handle such items as described at guttulus.com.
Companies are already taking advantage of them
As a continuation of the previous point, we are already seeing companies begin to store items as NFTs to gain all the benefits described in the previous point. IBM for example just announced that it will begin tokenizing patents as NFTs to solve the lack of transparency in ownership and transactions.
The generational shift
The two generations that grew up with the internet, Gen Z and Gen Alpha (born 1995-2025) are also set to ensure that NFTs and other technological advancements such as AI, cryptocurrencies, autonomous vehicles, etc. are here to stay.
People are more tech-savvy
The generations described in the previous point, as well as millennials, are native to Web3.0 as discussed over at runrex.com, and are incredibly tech-savvy and hyper-connected, socializing, communicating, gaming, schooling, working, and transacting intuitively online, which will ensure that NFTs will be here to stay in the future.
NFTs and distributing value
NFTs have enabled us to cross the crypto mainstream and institutional chasm, as the gurus over at guttulus.com point out, allowing us to enter a new era of adoption, and as long as there are things of value out there, NFTs now provide people with ways to capture, secure, store, and distribute them.
Rise in creation in the digital space
From discussions on the same over at runrex.com, we see that culture around the world continues to shift into digital mediums, and so too do the works that represent and reflect that culture. This is why, while art previously only held value in physical forms such as paintings and sculptures, the rise of creation in the digital space has led to a demand for housing valuable in a virtual format, which is where NFTs come in, and why they are worth the hype.
The idea and desirability of virtual ownership will only increase
NFTs are here to stay and are worth the hype because the idea and desirability of virtual ownership are still both in their infancy, and will only increase as businesses begin to see the importance of using this concept to increase appreciation, trust, and value for their clients.
Companies are moving to repurpose their assets into NFTs
Other than IBM, as already mentioned, we are seeing several major organizations venturing into repurposing their assets into NFTs. The New York Times for example sells articles valued at over half a million dollars while Nike has explored a sneaker authentication system via NFTs that it affectionately calls CryptoKicks.
Influencers and NFTs
Influencers carry a lot of sway and influence in the modern world as the gurus over at guttulus.com explain, and the fact that they have started offering personal NFTs on social media and other online platforms as another channel for selling merchandise is another indication that NFTs are here to stay.
Collectible mania
Just as we have seen an alternative asset class form around physical collectibles like Pokémon cards, NFTs are starting to showcase what this space of rare hallmark brands looks like online as discussed over at runrex.com. From NBA Top Shot to niche collectibles like CryptoPunks, collectible mania means that NFTs are here to stay.
The rise in Bitcoin and Ethereum
As the subject matter experts over at guttulus.com point out, with Bitcoin and Ethereum reaching an all-time high when it comes to prices, and with investors looking for new places to allocate capital, NFTs have filled this vacuum perfectly and are worth the hype.
They allow buyers and sellers to prove authenticity
NFTs allow buyers and sellers to cryptographically prove authenticity, rarity, originality, and other unique attributes of digital and non-digital goods through unique digital identifiers. This is something that is extremely useful and explains why they are worth the hype and here to stay.
They solve the issue of forgeries
Collectors are always willing to pay top dollar for that coveted collectible, be it a coveted Pokémon card, Hall of Fame card, or silver spoon to complete their collection. However, the rise in fakes and forgeries is increasing the risk and lowering the value of the collectibles markets. NFTs provide a way to trace the ownership and authenticity of any good, hence why they are worth the hype.
The multi-million-dollar market for tokenized sports shirts and shoes
Blockchain platforms like Sorare and The Sandbox are tokenizing entire football teams and their memorabilia and collectibles, making players assets who can create value from brands as captured over at runrex.com, leveraging this multi-million-dollar industry and showing the value NFTs have and why they are here to stay.
Cross-chain functionality
NFT owners are gaining more monetization opportunities through blockchain interoperability as explained over at guttulus.com. While this can be seen in the gaming industry where the cross-gaming platform frenzy is real, cross-chain functionality is not confined to the gaming world alone, and this is a phenomenon that shows that NFTs are here to stay.
Moving towards a tokenized world
The world is also slowly moving towards tokenization as revealed over at runrex.com, which means that limitless use cases for NFTs are emerging from virtual gaming and entertainment lands like Decentraland to the use of NFTs in eCommerce and the global trade space, showing that they are worth the hype.
They help brands reach out to and interact better with clients
NFTs are also playing a huge role in marketing and lead generation as, thanks to the global interest they have generated, NFTs have opened up new ways of brand storytelling and consumer interaction, which are the two main pillars of an effective marketing strategy. With NFTs, you can create brand experiences, increase brand awareness, encourage interaction, and create interest in your brand and product.
Potential for growth and development
Ultimately, the fact that NFTs have huge potential for growth and development in virtually all industries out there is one of the main reasons why they are worth the hype and are here to stay. From eCommerce to the fashion and gaming industries, just to name a few, NFTs have lots of potential new ways they can be used hence why they are here to stay.
This article only just begins to scratch the surface as far as this topic is concerned and you can uncover more details by checking out the top-rated runrex.com and guttulus.com.