According to William Quigley, a co-founder of stablecoin Tether, NFTs, which are digital certifications of provenance backed by blockchain technology, have the ability to enhance the value of not just artworks but also everyday needs like retail products.
In a recent conversation, Quigley remarked, “All customer products that cannot be eaten in the next 10 years might well have digitized counterparts. They will have NFTs”.
According to the cryptocurrency luminary, the world's digital answer to collectibles, which has garnered tens of thousands of dollars at art auctions this year, may well become a routine requirement within a decade.
There is a growing discussion about the future of what some view as a vital component of contemporary finance, while others see it as yet another digital asset frenzy fueled by more volatility and hyperinflation worries. The recent dramatic price fluctuations for cryptocurrencies, including Bitcoin, because of increasing environmental concerns and a broadening crackdown spearheaded by China, have increased the pressure.
This year, NFTs have grown in popularity because of offerings such as digital artist Beeple's record-breaking 69.3 Million USD sale of "Everydays: the First 5,000 Days" and a video of a LeBron James dunk. Everyone, from art exhibitions to the International Olympics Committee, fashion houses, and even Twitter, is providing digital tokens.
According to CoinMarketCap, 57 ventures in the Collectibles & NFTs category it monitored at the start of the year had grown in market value to 16.7 Billion USD as of July, rising from 4.67 Billion USD in January. However, as of July, a larger group of 159 ventures it had been monitoring was valued at 19.2 billion USD, down 52 percent from its apex.
Even Vignesh Sundaresan, better known as MetaKovan, who acquired Beeple's record-breaking digital art piece, has expressed concern about NFTs due to their instability. He warned in an April interview that anyone trying to profit from NFTs is facing an “incredible risk” and that it is “even crazy than trading in cryptocurrency”. Some customers have been put off by more fundamental and long-term concerns about blockchain technology’s long-term viability and security, as well as its likely exorbitant power usage.
Advocates of the NFTs, on the other hand, claim they are loving the long game. In an email response, Monica Lengthy, general supervisor of RippleX at Ripple, stated, “We expect to see use cases for NFTs expand beyond digital artworks and collectibles”. She stated that “they are establishing new funding sources for artists and producers”.
“Carbon offset” NFTs, which would see the US National Forest Foundation, plant a tree each occasion a token is claimed, is one instance of how the technology could be used in diverse sectors, according to Quigley.
“As individuals spend more time online, the number of possible instances that may be purchased as NFTs continues to grow significantly,” said Curtis Ting, managing director of crypto exchange Kraken for Europe, the Middle East, and Africa. “The question we should now be posing ourselves is not what can be represented as an NFT by 2030, but, more to the point, what would not be?”