Non-Fungible Tokens or NFTs as they are more constantly called have been a huge huge rage following the DeFi path and the Bitcoin and Ethereum train. While coins and tokens take breaks in their growth and both major coins have done so this year alone NFTs appear to be trying to buck the trend. An asset cannot go up forever and this weekend I had several friends ask me about buying NFTs.
These friends have not ventured into cryptocurrencies and blockchain before but because of the huge news about first Bitcoin, then DeFi and now NFTs they are all very interested in purchasing and buying their own. Now NFTs have been growing with adaptation and more and more people are joining in on either creating, earning, or purchasing them. Never being at these prices before this market reminds me of the first time Bitcoin made its run in 2017.
The biggest issue from 2017 was regular people lost their minds and figured they could just buy the coin at $20,0000 and it would continue to go up. As we all know that failed to happen and the coin melted down to $4,000 before building itself back up to what it is today. This NFT market is reminding me of the pure speculation that occurred and dramatically impacted cryptocurrencies and blockchain when the 2017 bubble burst. An NFT itself holds absolutely no value. It has no function it is just something you "own" whereas many cryptos have a function with either smart contacts or another type of blockchain interaction.
Since there is no inherent value behind some of these NFTs and especially the ones that are just NFTs of videos already out on the internet it is pretty concerning that this cannot continue much further. The average person is rapidly getting priced out i.e. Jack Dorsey's first-ever tweet. I worry that more and more regular people are getting involved with this market due to hearing about it from my friends who otherwise have no clue. These are the types of people who could end up getting hurt if/when the bubble pops.
If this bubble pops it would give the government another reason to try and further get involved. The government would of course claim to just be protecting people but they would end up just hurting everyone overall. I encouraged my friends much like I have encouraged people who have asked here to Do Your Own Research! The NFT marketplace is on fire and definitely will be around long term but the rapid and explosive growth.... that type of growth will not continue. There are still art pieces today that fail to hit reserve and do not sell that shock people and that is the same market that NFTs are joining!
