Bitcoin has brought blockchain to the world, and with it, we are witnessing the growth of a new industry that is reshaping finance, media, governments, and everything in between.
The latest addition to the innovative world of blockchain and cryptocurrencies has been the highly popular Non-Fungible Token, or NFT, a type of crypto asset that serves many purposes and is redefining the landscape of the digital property.
What is an NFT?
Cryptocurrencies have typically represented value in the form of an asset or financial instrument, NFTs are digital pieces of property that can be programmed to function in a number of ways.
They can be pieces of art, video game items, a membership card, and everything in between, all at the same time. At present, NFTs are extremely popular amongst digital artists and collectors as for the first time in history, original works of digital art can be more than just a right-click-and-save piece of content on the internet.
The difference between an NFT and taking a picture of the Mona Lisa is that you actually own the NFT, and you can prove that you own it; its entire journey, from creation to every subsequent sale and price is forever embedded on the blockchain, displaying a full record of ownership and price over time.
NFTs in Action
Before we get into why you should be considering purchasing NFTs, let`s take a look at the three most prominent use-cases at present.
Art – NFTs rose to prominence through digital collectable art pieces that can be collected and traded forever. One notable artist, Beeple, became the highest-earning NFT artist ever selling his immersive digital artworks as NFTs. To add a little more value to the product, Beeple also shipped physical copies of the still & animated artworks to buyers.
Music – International superstars, The Kings of Leon, produced a new album which was also sold in NFT versions. It’s an incredible multimedia package that, alongside containing the album and art and videos, also granted the owner lifetime access to every single one of their concerts with front row privileges, VIP experiences and free cab rides to the show.
Video Games – Axie Infinity is a video game that uses NFTs for a number of different uses. At present, the main use is the little Pokemon-like creatures called Axies with which one can play the game. It’s a tactical, smart, fun RPG that lets players go on adventures, battle other players, and breed Axies, all of which can earn players real money.
Why Should I Keep an NFT?
Due to the versatility of NFTs and their many applications, there are many reasons why you should be looking to purchase some of your own.
First of all, you can make some serious money. NFTs are incredibly popular, and depending on their function they may grow substantially in value. For instance, in 2019 the average cost for a relatively rare Axie was way under $100, in 2021 the most average Axies sell for a minimum of $120, plus all the additional earnings you can make through the game. Furthermore, certain art collections are limited release and this gives these artworks some intrinsic value; amongst collectors, digital artworks are much like the new baseball cards.
For content creators, NFTs also offer amazing benefits. As their existence is verifiable, it protects artists from having their works stolen, which has been troublesome for artists trying to make a living off their hard work. There’s also the added benefit of being able to programme an NFT to payout royalties to the artist every time it changes owners.
Further to this, NFTs can be programmed to do almost anything. It can be a membership card with significant benefits, discounts, and loyalty points in the form of crypto. It can be a piece of art as well as a subscription to your favourite artist’s latest works. Birth certificates, credit scores, property deeds and so much more can take on the NFT form.
So What’s Next?
What form NFTs will take in the future is anyone’s guess, but at present every industry on Earth is working out how they can benefit from this new asset class.
We at HexCars have a similar vision in mind, and as we expand our fleet and services, we believe that we should give our customers added value with NFTs as a thank you for your business and support.
Watch this space!