It is usually not a surprise when fragile liquid financial bubbles burst despite the confidence most investors have in them to invest millions. Thus, most people believe that non-fungible tokens (NFTs) are a bubble that is set to burst anytime soon. When this happens most online artists, jpeg millionaires or NFT minters might have their careers altered. Unlike bitcoin or Ethereum, NFTs offer more stability, and they are linked to tangible notions of art and value.
NFTs are straightforward pieces of art or assets that hold much value. Thus, they are referred to as a bubble that is fragile and volatile with booming growth. Evidence of the NFTs` boom is clearly shown in the world of art where Titian and Michelangelo have managed to mint paintings into NFTs and received vast sums of money. This bubble theory also stretches to digital makers like Beeple who would take an original meme template and turn it around into something that specific buyers want. For example, Zoe Roth made $500 000 when she sold the meme of a little girl minted into an NFT.
NFTs are blockchain launched and over $100 million was spent in their acquisition in 2020, a year later the figure expanded to $22 billion, while most of them have been valued at over $35 billion in the NFT market. Clearly, this shows an unprecedented explosion in the marketability of these NFT projects.
“Yes, NFTs are a bubble of new technology and this bubble has played an important role in accelerating investments.”
Just like Bitcoin, NFTs have been declared as bubbles about to burst especially by outsiders who are missing out from this digital technology. This is because most bubbles in history have popped, though it might have taken weeks, months, years, or decades for the eruption to happen. Most people in the industry believe that thousands of investors will be left out of profit when this bubble collapses.
Are These Bubbles Going to Burst?
Millions are being pumped into the NFT industry, thus making supply outweigh demand and anyone would think that the NFT bubble is close to the verge of bursting. In the early 2000s Bitcoin was purchased using a few cents, until it started climbing the ladder to being $100 or $200 a coin. At this point, most people thought that the Bitcoin bubble was about to burst, but now Bitcoin is worth $44 000 a coin. When the internet launched in the 90s, it was expensive to build and host a website. But basic sites started entering the industry and it was as if the internet bubble would burst anytime. But we still have internet today and we can’t do without it now.
But NFTs on the other hand represent the first digital assets that can be owned. This ownership is secured digitally, can be transferred easily, and is verifiable. For example, Everyday-The First 5000 Days, Beeple`s artwork which sold for $69 million can be copied and pasted but the original token cannot be. Thus, being said the world is changing to a place where every asset or application has a token. A world where a person or object uses tokens as a valuable digital representation.
There is a lot of uncertainty associated with the NFT space, but the vast population has accepted that the NFT industry is staying for the long term. The authentication provided by the NFT space is taken as reassuring by most businesses and investors. Thus, the authentication and security of these digital assets have been monitored and proven in the digital realm before they were launched. Thus, NFTs have the magnet to attract the attention of talented artists, fully funded entrepreneurs, creative musicians, and industries. The list goes on and there will be both winners and losers in this journey. But the NFT space is the point where this bubble is stable, and it will eventually continue soaring into the sky.
There is no possibility that the NFT bubble can burst. This possibility is deemed by the money and gold rush that is flooding into the NFT space as compared to the 1800s. on this note, social media is quick to deny the possibility of someone earning a million dollars overnight. There is too much supply as thousands of NFTs are being launched each day, seeking more demand to make people millionaires overnight. The future of the NFTs is yet to be realized since a time will come when NFT releasers will understand that buyers are only interested in digital assets that have real potential. So, this big frizzle supply will become normal, this might happen this year or in the mid of 2023.
If the NFT industry manages to survive this, then it would have found its space in the digital realm to make history. Thus, the digital asset industry will accommodate NFT space with no bubbles!