If there’s one thing distinctly different about 2021 it’s the massive buzz around a wide range of digital assets from crypto to NBA top shots, and like the title of this post says NFT’s.
First things first, if you don’t know what NFT means let me break it down quickly so you can follow along with the rest of this post.
NFT stands for Non-fungible tokens, and you can think of them as digital assets that represent a range of either tangible or intangible items. A good example that is becoming increasingly popular is digital art. Just like collectors love owning a painting from a famous artist that has a little 20/50 on the bottom of it, NFTs work in a similar way, except rather than being physical it’s digital, yup – nothing but 1’s and 0’s.
If you want to really go down the rabbit hole on NFTs feel free to read this article on CoinDesk – What are NFT’s and how do they work?
Over the last two weeks I’ve seen NFT’s go from something that very few people know about to something everyone is talking about. It’s a bit like Clubhouse. This time last year, the word clubhouse was something we probably never said, not once, since we were kids, now – try going a day without saying it, I dare you.
I think what makes NTF’s so interesting is that for most people it’s hard to grasp how a digital asset, something made of just 1’s and 0’s could be considered unique and valuable. For domain name investors like myself, I think this concept is just a fact of life.
The reality is, as many of us know who own domain names and get inbound offers on our domains. Most people think they should be able to buy our domains for reg fee. We’ve all had emails from people who want to buy a domain from us asking why the heck we’re charging so much – aren’t domains just $10? Why would I pay $10,000, or $100,000?
Like domains, the value of NFT’s comes down to how unique and/or rare the digital asset is. And just like people have been predicting that domain investing will die – like in this famous post from John Chow – Why Domain Investing is Dead, the same is happening with NFT’s. Of course the main difference is domain names have now passed the test of time – they’re an asset class plain and simple in my opinion.
NFT’s on the other hand are very new and could just be a fad. Still, just like the OG domain investors bought domain names in the 90’s, a new digital investor is emerging and betting on NFT’s. Only time will tell if they are ahead of their time, but what I can tell you is, all day, every day, when I look on Twitter, Facebook, Tiktok, Instagram, heck – even looking at CNBC articles about Mark Cuban – NFT’s are front-and-center.
Like most new investment opportunities outside of domains, I’m just trying to be a sponge now and learn what I can. I don’t know enough to start investing, my investment dollars are still pretty darn focused on domains, but just like crypto, handshake domains, and NBA Top Shots, I’m curious and learning more every day.
What do you think? Are NFT’s just a fad or is this the chance to get in on the ground floor of something big? I want to hear from you, comment and let your voice be heard!