Why is the growth of NFTs so rapid?

We have all heard of NFTs and we may have even seen NFTs being sold for hundreds and thousands of dollars, but what are NFTs and why are they the craze today? NFT stands for non-fungible token, and they are pieces of data that can be stored digitally. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.

An NFT of Jack Dorsey (and Twitter’s) first-ever tweet sold for around $2.9 million and there are many like this that sell for way more. This may seem crazy, but they are almost like digital art and art is notorious for selling at ridiculous prices.

We all spend most of our day in front of a screen and this may be a major contributor to the rise of NFTs as digital media has become more and more common.

Another reason for the rise of NFTs could be that it is seen as an investment. It may be a big risk, but NFTs may go up in value over the next couple of years, and may be sold for a huge profit. It also creates a new business model as selling digital media is a more viable option now.

NFTs have notable advantages such as being non-transferable, authentic and having preservation for ownership rights, which may not be guaranteed with a real piece of art. An NFT is stored in a digital ledger and hence cannot be copied or duplicated.

The buzz around these non-fungible tokens may have reduced in the past couple of months, but they are still being created and sold. There are developments that are yet to come in this space, and those who saw NFTs as a one time art fad may be caught off guard in the future.

By: Aaditya