Non-fungible tokens (NFTs) are huge right now. Having leveraged the power of blockchain, something that was originally created to support cryptocurrencies, NFTs have soared in popularity over the last 12 months.
If you’re unsure what an NFT is, you may wonder: where do NFTs’ value come from? That’s something that we’re going to be exploring in this article as well as looking at what it is that has seen those in South Florida really latch on to what’s on offer.
What are NFTs?
A good place to start would be to take a look at NFTs and what they actually are. The best way to describe these is as cryptographic digital assets. They all have metadata and code that are unique and, thanks to being stored on the blockchain, they can’t be forged or replicated.
As a token, an NFT represents something. They represent artworks, collectible cards, and real estate in games. One of the most famous NFTs is perhaps that that came from Jack Dorsey who tokenized the very first tweet.
What can NFTs be used for?
To understand the value of an NFT, and to appreciate why those in South Florida are so excited about these, it’s worth having an understanding of what can be done with them. Their uses have certainly increased. You’ll find that NFTs are revolutionizing key marketplaces and that new uses are being explored all of the time.
Some of the most popular uses of NFTs right now can be found in:
- Gaming – This is allowing for the sale of in-game objects and the creation of businesses. Selling items that can benefit characters or even be used to create new lands. A great example of this can be found by looking at Decentraland
- Art – This takes away the need, to some extent, for galleries and art houses. There are no middlemen taking a cut so the artists stand to profit even more. The most expensive digital art so far was a collection of NFTs by Beeple, which sold for $69 million
- Supply chain – By using NFTs, and blockchain, companies can account for every step that a product has made from where it was sourced to where it is ultimately sold
- Real estate – NFTs make it easier for multiple people to invest in the same property as it can be divided into separate tokens that represent different parts of a building
Art Basel Miami
It was during Art Basel 2021 that those in South Florida demonstrated their hunger for NFTs. This event brought together thousands of artists, investors, and techies all of who have a massive passion for all things NFT.
If you needed more evidence that South Florida is the place to be for anything related to NFTs, you just need to look at the New York pop artist, Kristin Simmons. When it came to releasing her very first NFT collection, she didn’t choose New York as a launch pad: she opted for Miami.
What gives NFTs their value?
Those in South Florida appreciate that NFTs can be worth huge sums of money, but where does that value even come from? Well, just as with any asset, it’s all about supply and demand. As the number of any given NFT is limited, this creates a huge demand and so the value goes up.
That’s why South Floridians have flocked to NFTs: they can see the clear potential for exponential growth. There are already ample examples of how people have managed to make hugely significant profits.
