Quotes of the month – What the NFT?
"A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded” (Wikipedia)
“To buy NFTs or not to buy NFTs?” …that’s a question many investors must be asking themselves as “NFT hype” grips the world. There’s no easy answer – Google for expert opinion and you will end up with every shade of “for” and “against” argument you can imagine. We bring you two quotes which may be worth considering -
Quote #1
John Hawkins, senior lecturer at the Canberra School of Politics, Economics and Society:
“Cryptocurrency markets work in essentially the same manner. For existing investors to profit, new buyers have to be drawn into the market. So too NFTs, with something illusory attached to the digital assets.
“There’s virtually nothing humans can’t turn into a market. But increasingly there are speculative bubbles in things with absolutely no fundamental value. NFTs have joined bitcoin and celebrity meme-based cryptocurrencies such as Dogecoin and Shiba Inu as examples of tokens with no intrinsic worth, which speculators just buy in the hope the price will keep rising.”
Quote #2
Robyn Conti and John Schmidt, Forbes Advisor:
“In other words, investing in NFTs is a largely personal decision. If you have money to spare, it may be worth considering, especially if a piece holds meaning for you.
But keep in mind, an NFT’s value is based entirely on what someone else is willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.
All this means, an NFT may resale for less than you paid for it. Or you may not be able to resell it at all if no one wants it.
…That said, approach NFTs just like you would any investment: Do your research, understand the risks—including that you might lose all of your investing dollars—and if you decide to take the plunge, proceed with a healthy dose of caution.” (Emphasis supplied)
The bottom line
Tread carefully and don’t even think of investing without professional advice!
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