Like many things in this world, the value of NFTs is in the eye of the beholder.
This does not mean that NFTs cannot sell at high prices. For example, in addition to his $91.8 million price tag for “The Merge,” Beeple’s “Everydays: The First 5000 Days” fetched his $69.5 million at auction.
“Value extends from authentication and uniqueness,” says Ozair.
But not all NFTs come with a hefty price tag. Some are valued at less than $1. According to CryptoSlam data, his NFT sales of $647 million in July 2022 had an average price of $115.15.
In fact, 2022 will be the great leveler of the NFT universe, with the value of cryptocurrencies plummeting and some $9 billion wiped out NFT market as a result. Estimated $17 billion worth of NFTs Owner changed in January 2022decreased to $400 million by November.
Of course, NFTs don’t have to be art. There are also sports NFTs that include digital variations of trading cards and highlight reels. For example, a picture of LeBron James taken by Kimani Okeala sold for $21.6 million. The MLB Champions blockchain-based baseball game sold for $21.3 million, and a card signed by World Boxing Council (WBC) middleweight champion Jermall Charlo sold for $19.1 million.
The virtual land, which is the space of the metaverse, can also be sold as an NFT. However, after millions of dollars in purchases were made in 2021-2022, the value of virtual land is reported to have fallen by more than 66%.
However, in the metaverse, NFTs can also include accessories for the user’s virtual avatar, such as images and clothing, said Jerry Eitel, honorary partner and chief metaverse officer at global accounting firm Prager Metis. increase.
As the world becomes more and more digital, NFTs can even represent deeds to physical property, user medical records, proof of ownership, or proof of attendance. These things may not be easily transferable from one owner to another, but each may occupy its own space on the blockchain.
Of course, buying NFTs is different than buying stocks or putting cash into a high-interest savings account.
As 2022 has shown, there is no guarantee that NFT prices will go up. This means that when an investor buys an NFT, he or she needs to take the time to understand what they are buying and what the value of his NFT will be.
The advice and information provided by ForbesAdvisor is general and is not a substitute for independent financial advice. ForbesAdvisor encourages its readers to seek professional advice regarding their financial decisions and investments.
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