TL;DR Breakdown
• NFTs could die in five years at most from their misuse.
• Non-fungible tokens allow you to add value to any image.
Non-fungible tokens or NFTs has been in the cryptocurrency space due to their renewal plans. These digital business cards have promoted art and that is why it is so famous. The token’s purpose is to give authenticity to unique art pieces.
This new technology allows official versions of content on the internet, such as memes, tweets, and images, to be sold. The NFTs have good players on their side, like Tesla CEO Elon Musk and NBA members. The notion these investors have is that non-fungible tokens can earn you a lot of money in a short period.
NFTs add value to any object
The NFTs’ way of working is to give value to any image or object, and memes creators benefit from it. Now a developer of images for social networks can form a startup with non-fungible tokens. Bad Luck Brian, a meme trending a few months ago, sold for more than $45,000.
The Overly Attached Girlfriend meme was sold for over $459,260. Even the first tweet Jack Dorsey, CEO of Twitter, was sold as a non-fungible token for more than $2.9 million.
Non-fungible token bubble could explode
According to cryptocurrency experts, although NFTs are on the cusp of their fame, this may not last long. The non-fungible token bubble is set to explode in three to five years maximum. Coinbase co-founder Fred Ehrsam supports this idea because the token does not have a long-term investor base.
Ehrsam even predicts that 90% of NFTs will lose their value in that average scheduled time. The expert relies on the token’s exaggerated value, which can be beneficial today but fatal for the future.
People will create websites, images, and art that will contextually be garbage to earn non-fungible tokens. This way of working will discredit art, web development, and the internet, according to Ehrsam’s predictions.
While non-fungible tokens are in good time, this will not be infinite, and the investor needs to prepare. It is preferable to trade with NFTs and exchange it for other cryptocurrencies than to leave the asset as storage. When the token bubble bursts, there will be no going back, so that the asset will disappear.
Many cryptocurrency experts agree with Ehrsam’s claims because he has been working in the market for years. Ehrsam, along with other Coinbase crypto enthusiasts, has created over 10 billion tokens. This person has contributed a lot to cryptocurrencies, and that is why his word has power.
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