We continue to look the ways how an NFT would add value to any object or service.
In our previous posts, we have identified several solid components of value-add that an NFT would specifically bring. In our very last post, we covered two key attributes, namely IP rights and ease of transfer👇
In addition to those there are also a couple of side benefits that NFT would bring. While these are all vague, we will try to look at couple of them in this post. 👉
Further brand recognition
NFT is a hot topic - that is due to all the attributes that we put out earlier in our series. Attention is one of the key ingredients of inflated value, and right now all the world, crypto or non-crypto, has its eyes on NFTs.
It is important to note that, even though NFT stands for non-fungible-token, which is a small variation from cryptocurrencies which are fungible, the general perception is that NFT is totally different than cryptocurrencies. You could see that many corporations or even governments that historically stayed away from crypto (or categorically denied it) are extremely eager to embrace NFTs. In that sense, the NFT world is actually attracting an even wider audience than cryptocurrencies.
|Image by Tom from Pixabay|
All the main players in art, namely producers, curators, exhibitions are looking at NFTs as a way to reach a wider audience and get a higher return for their efforts. Consumers of such art, namely individuals and collectors have already found an efficient way to get exposed to art with the introduction of digital art. NFTs have actually given them the ability to easily buy (remember: impulse buying is a major part of markets) and sell their collections thereby giving them a decent way to extract maximum value out of their art investments.
All in all, this creates a virtuous circle. The more value collectors get from their art, the more they invest into further art pieces. This, in turn, brings more artists in the space. As the buy and sell keep on, artists get loyalty fees from such sales. As numbers grow, we start seeing new artists and new technologies being used to create even more interesting art pieces. NFTs are becoming the glue among different components of this exponentially growing cycle.
To be continued…
As you see there are several additional benefits that NFTs would bring to the table. Some might consider it vague or even marginal, but to those in teh art world the effects of such benefits are enormous. We will continue to explore the benefits of NFT in our future posts…
None of the views expressed in this article should be considered as investment advice