- Crypto has the potential for tremendous growth, according to Lark Davis
- This surge can be triggered by wider adoption of NFTs
- NFTs are tokenized ownership of unique assets
The new trend could cause some big surges in crypto, believes Lark Davis, crypto trader, investor, and crypto researcher. He thinks that crypto has the potential to burst into flames and raise the price for 100 times or about 10.000 percent.
According to Davis, the crypto market will give innovative and lucrative opportunities to develop and grow beyond the DeFi space.
“So NFTs (non-fungible tokens) is one such area that is getting a lot of attention right now and could be a big growth area, and it’s certainly an area that we, as investors, maybe want to be paying attention to.”
He said that NFTs provide broad use for investors, pointing out the possibilities of digital art, virtual pets, collections of unique items, etc.
Davis recognizes the non-fungible tokens as unique and that they can represent the value of unique assets. It is different from fungible items that are interchangeable with any of the same kind.
“However, something like a ticket is non-fungible because even though we could, for example, trade our ticket for someone else’s ticket, well, it’s not going to be exactly the same, is it? Maybe that other ticket’s for a different film, or it’s the same film but at a different time…”
What if we use this idea in blockchain technology?
He thinks If we implement this idea for a blockchain setting, the non-fungible token is unique.
“NFT is thus a one-of-a-kind token, a certificate of digital authenticity verifiable on-chain.”
Davis also spotlights that NFTs can enlarge their scope beyond the area of ownership of digital arts or virtual assets. He recognizes NFTs as very useful in insurance, tokenizing orders, and similar business documents; in the insurance industry, or royalties.
The essence of his beliefs is that there are numerous possibilities, but one opportunity can deliver great profit. According to him, it isn’t enough just to have a public presence.
He recognizes the most profitable use of NFTs in its incorporation to DeFi space.
“One that I’m keeping a close eye on is called Persistence. Now, this is a new player coming to Cosmos, which will be focused on bringing in enterprises into both the NFT and, of course, into the blockchain world, looking at DeFi and how we can bring those NFTs into DeFi. So this is definitely one that I’m keeping an eye on…”
Why invest in non-fungible tokens
NFTs are a kind of tokens that are not interchangeable. They represent unique characteristics, which makes it impossible to replace or exchange it for the similar.
NFTs are profitable as an investment due to the ability to create value for the tokenized assets. Also, an important aspect comes for investors in NFT due to the ability to provide more liquidity. Maybe the essential feature of NFTs is that they have great potential for development. For example, an application to the virtual real estate showed an excellent capacity for managing the property.
According to some experts, NFTs aren’t useful only in games, and it is also a good tool for investment. So its potential may rise many times, will it be 10.000 percent we are yet to see.