Non-Fungible Tokens (NFTs) have made a huge mark in the cryptocurrency space, in less than a year. Basically, every day, you hear about a new collectible NFT which could be an old image from the ’60s that has probably fizzled out but is still an important part of history.
As a huge investor in the Crypto space, Jurgen Cautreels has not been left out in the race to acquire NFTs. We had a chat with him on the uncertainties that still surround NFTs and the possible future of these assets in the coming year.
Jurgen, what is all the rave about NFTs? And why do investors like you, think it is valuable enough?
Thank you for that question. The value of an NFT comes from the property it represents, which is generally something that exists in the digital world like an original piece of art or digital memorabilia.
The NFT itself doesn’t necessarily contain the digital property, but points to its location on the blockchain. So, just like a concert ticket or a deed to a physical property, an NFT reflects the value of the thing it represents.
There have been several arguments on the connection between NFTs and cryptocurrency, how are NFTs regarded as “crypto coins”?
NFTs aren’t really cryptocurrencies, but they are built using technology similar to Ethereum and Bitcoin. Also, like cryptocurrencies, NFTs exist on a blockchain, which verifies their unique identity and ownership.
What is the future of NFTs in the coming year?
Before continuing, I would like to state that whatever statement or prediction I might make on NFTs are not to be taken as financial advice. Now, NFTs have a lot of benefits, to those who are investors in cryptocurrency and those who have no single idea on cryptocurrency.
For artists, musicians and celebrities, NFTs will be beneficial because they offer a new and unique way to sell their wares — including things like GIFs, memes, and tweets — directly to fans. NFTs also provide artists an opportunity to program in continued royalties if it is sold to a new owner.
Also, for art galleries there’s the potential of reaching out to more collectors with NFTs. And for investors like me, it’s a huge opportunity to invest in because it’s going to be around for a long time.
Do you think the high cost of minting NFTs will discourage investors in the coming year?
It is true that unlike Bitcoin, Ethereum and other cryptocurrencies, minting NFTs is quite expensive. For example, NFTs minted on the Ethereum blockchain currently have a gas fee of around $40.
This is not feasible for low-value digital arts. But the side is that there are alternative options to mint NFTs in other platforms such as Tezos and Polkadot at lower costs.
Lastly, do you think NFTs present a hope for the crypto economy?
As much as I am an investor in cryptocurrency and NFTs, I can’t categorically state whether or not NFTs serves as a hope for the crypto economy. But the cryptocurrency space is becoming a huge part of the economy of the world, and NFTs is going to catch on more buzz in coming years, so make of that what you will!
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