Before 2021, most people had no idea what non-fungible meant, but now celebrities like The Weeknd, Paris Hilton, and Jimmy Fallon use it in everyday conversation.  NFT sales are in the billion dollars, representing a nearly 38,000 percent year-over-year increase. In fact, the most expensive NFT ever sold was a $69 million sale by digital artist Beeple in 2021. There’s even an SNL skit about NFTs that was turned into an NFT.

 nft developer in Malaysia

According to experts, the explosive popularity of NFTs demonstrates the unpredictable acceptance curve of new technologies, and many factors contributed to the rise of NFTs in 2021. Because of the Bitcoin and Ethereum bull runs, many new investors flocked to crypto in 2021. And, once you have a small amount of cryptocurrency, it is simple to begin investigating other substitute crypto investments, such as NFTs, staking, and others, according to Yang. NFTs also evolved into a new medium for artists and creators to display and commercialize their work while maintaining full transparency and authenticity of ownership. You can learn more about nft developer in Malaysia here. 

 

Are NFTs a Good Investment?

 nft developer in Malaysia

NFTs aren’t quite prepared for primetime-making investments, and there are several components of crypto you’ll want to be thoroughly familiar with before investing in an NFT. For one thing, purchasing an NFT is a complicated process, according to Doug Boneparth, a financial consultant and president of Bone Fide Wealth in New York. To get started, you’ll need an Ethereum-compatible crypto wallet and some ether, as well as the opportunity to network your wallet to an NFT market system — a lot of hoops to jump through. NFTs are also vulnerable to cryptocurrency hacks and scams, which are becoming more common and sophisticated. A Google search for “NFT scams” demonstrates how easy it is to get into trouble. Then there’s the issue of value and convenience. NFTs are not like stocks or bonds, where the intrinsic value of the investment is generally known. An effective NFT is similar to a strong brand in that it is given a lot of value by others, so it is “only as beneficial as someone else is willing to pay for it. 

 

More people buying ether for NFTs has the potential to be a very good thing for investors betting on a long-term increase in value of Ethereum. According to Yang, the fees for purchasing NFTs are a significant disadvantage. On Ethereum, he claims that you may have to pay “upwards of a hundred or $200 just to make the transaction happen.” These are known as “gas fees,” or fees paid to miners for validating an Ethereum transaction. Gas fees have risen as the volume of transactions on the Ethereum blockchain has increased, owing primarily to wider adoption.

 nft developer in Malaysia

Experts are divided on it, with some screaming “bubble” and others claiming NFTs will create new ownership opportunities and remix old ones. Meanwhile, creators and artists claim that this is the next generation of monetization. The true value of NFTs is in the technology behind the scenes which are smart contracts based on blockchain technology.