During the past year, an infinite number of topics related to blockchain, cryptocurrencies, meme stocks, fintechs were present, but there is a concept that took hold and it is the NFTs.
An NFT is a non-fungible token (Non-Fungible Token) that allows a certificate of authenticity to be placed on any digital asset.
With that, that asset will be recognized as unique, in addition to being added to the blockchain encryption, where the data and value of each of the purchase and sale operations that it has had are recorded, regardless of how many transactions they are involved in.
Due to these characteristics, the digital asset will remain as a unique work. Although there may be copies of the asset, the encryption will be able to keep it as original and possibly as invaluable, everything will depend on the value that the creator and the buyer want to give it.
What is the cost of an NFT? Although it is a non-fungible asset, that is, it does not have a certain value as it would happen with something tangible or international such as a gram of gold, the NFTs obtain value for the possible acquirers interested in buying something unique. They have proof that there will not be two alike in the world, although there may be copies, neither would have the information chain that this token would have to verify authenticity.
Such is the case of the work “Everydays: The First 5000 Days” by the artist David Winkelmann better known as Beeple, which consists of a collection of 5,000 images that began in 2007 and could conclude in 2021.
The work was auctioned at an event at Christie’s London auction house for $ 69.3 million last March, causing a riot in the prices of digital assets.
According to analysts at JP Morgan, last November, the estimated value of NFTs in operations was around $ 7 trillion.
This has attracted the attention of artists, influencers, investors and even sports teams in different branches that have sought to experiment and create their own digital art works; all with different intentions.
Some have done it in order to obtain resources and finance their activities, others have chosen to diversify the use of their resources and invest speculating in the growth of this market, as well as the future technologies that the creation of a metaverse will bring.
An effect similar to the one that has been explored with cryptocurrencies in the last five years that has continued to drive the capitalization of this market and with a number of different options.
The important thing for the future will be to define whether this type of art is here to stay or is it a trend caused by opportunity investors.
It is key to understand the risk involved in putting money in a non-expendable asset and how quickly this can change without the need for precedent.
With the future creation of the metaverse and the continuous growth of video game platforms, it will be interesting to see how the NFTs will interact, given that, to date, there have been many collaborations between artists from different fields and influencers with them.
At least for now the most logical explanation for acquiring an NFT is to buy at an acceptable price and then sell it for a higher price.
* The author is Associate Client Servicing – BBVA Asset Management
Reference-www.eleconomista.com.mx