Crypto is still on the rise, but on its coat-tails – or remarkably close behind it – is the NFT (non-fungible token) sector. Just as cryptos have managed to totally change the global financial structures, understandings and processes, it is argued that NFTs and digital assets will do the same. It’s thus important to learn as much about these developments as possible while they are still a potential blue ocean for investment. Continue reading for a quick guide on the current digital currency environment.
What’s a blue ocean investment environment?
A blue ocean environment is one where there is still open water to make inroads without any sharks in the water. Both new tech and innovation, as well as disruptive business thinking, products and services have the ability to create and establish blue ocean investment environments. The main aim is to look for extreme product differentiation and a reduction in costs to boot. However, in the modern interconnected world these spaces don’t last too long. It is thus best to learn as much as you can – as quickly as you can – if you want to take advantage of this new tech and finance option.
Crypto’s movement to NFTs and digital assets
Crypto is arguably still on the rise, but for many the market caps, the increase in cryptocurrencies and current prices means that the market is quite saturated. There are over 18,000 cryptos and coins out there, and more cryptocurrencies are being developed on a regular basis. The cryptocurrencies that have been well established and are actually working are fewer than you could count on one hand. It has thus become quite difficult to enter the crypto market and to still make an investment that will yield significant returns.
Based on the same blockchain technology and open ledger system, a new form of digital currency and assets called the NFT has come to the fore.
NFTs and their sharp rise in popularity
A non-fungible token is a way to prove ownership of digital goods and assets. It is non-fungible in that it cannot be replicated or divided. While other currencies such a dollar bill or even crypto can be divided and broken up as well as replicated (in that one dollar is the same as any other dollar and holds the same value), an NFT is unique, and the value thereof determined by the uniqueness of the token. To learn more it will be worth visiting a professional platform such as OKX, where the value, exchange and purchase process and uses of NFTs is discussed at length.
The actual NFT is often not held in the blockchain, but an address is provided as to where the NFT, token or piece of art is stored.
Virtual or digital assets and NFTs are the new way of investment and are proving to be a new way to create wealth and have fun at the same time. For many who are already spending a great deal of their time in the metaverse or online – gaming or in employment – the ability to use NFTs as a means of investment, transaction and storing wealth or holding value in the virtual world has just begun. Watch this space as there is surely more to come.