What are NFTs?
NFTs, the wonderful world of digital assets—but are they so much more than just a way for artists to sell digital art online and make some money in the long run? Apparently. I recently watched a video that explored the depth of NFTs, and to be quite honest, I’m not sure if I’m impressed by how much there is to this world or if I’m simply entertained by the fact that NFTs seem to function like a video game that adults can participate in without being deemed bums who sit around playing games all day.
My previous knowledge of NFTs was that they were essentially a form of digital art that people could buy, sell, or trade for potentially large earnings. For example, I knew that artists could release NFTs tied to their songs or albums, allowing fans who purchased them to receive a small royalty whenever the artist made money from those releases. This concept was interesting, but to me, it sounded like something that only benefited those who already had money and could afford the upfront investment—just like any other financial venture. However, after watching the video, I now have a slightly different perspective.
Are NFTs just a game?
The video explained NFTs as being more than just digital art. A key point was that each NFT has a unique identifier, meaning no two people could own the same one, thereby eliminating the risk of duplicates and scams. While this aspect of authenticity and security was intriguing, everything else about NFTs still felt like a game to me. I understand that many people take digital assets very seriously, but as I listened, I couldn’t help but feel like they were describing a grown-up version of Hay Day or FarmVille. The whole concept of “owning digital shoes and clothes in the metaverse” immediately reminded me of a Hannah Montana game I had on my Nintendo DS, where you could collect concert outfits for Hannah and earn bigger shows based on how nice the outfits were.
Fashion
Of course, fashion is just one small aspect of NFTs, and there are many other applications. Take sports, for example. Owning certain NFTs can grant exclusive deals for watching live sporting events or even access to meet-and-greets with athletes. Still, I couldn’t shake the feeling that this was just another version of a game. In fact, the video even compared sports NFTs to “fantasy football but better.” At one point, they explained that some NFTs function like digital playing cards, where obtaining a high-ranking athlete could reward you with seats to a game, a chance to meet the player, or other perks. The catch? These NFTs often require a significant financial investment. At that point, wouldn’t it make more sense to just buy regular tickets and bring your friends or family with you instead of gambling on the NFT experience?
Sports
The music industry was another avenue discussed, one that I was somewhat familiar with before watching the video. However, I hadn’t realized just how expensive music NFTs could be. Prices ranged anywhere from a few hundred dollars to hundreds of thousands, all in the hopes that the artist would perform well enough for the NFT owner to break even or even make a profit. Again, this is something that requires a willingness to take on financial risk.
Did NFTs peak and are they niche?
Despite the various use cases and the potential for profit, I can’t help but feel that NFTs peaked during the pandemic. The main reason for this belief is that the entire world was indoors during that time, communicating digitally and spending significantly more time online. This created the perfect environment for people to buy, sell, and trade digital assets, as everyone was connected to the internet at the same time. However, as life returned to normal, people started going back to in-person experiences—shopping at local stores, attending live events, and placing more value on tangible assets.
That’s not to say NFTs are completely irrelevant now, nor do I dislike the concept altogether. There are certainly benefits, particularly for artists and creators who use NFTs as a way to interact with their fans while maintaining ownership over their work. However, I do think the hype has died down, and the market has shifted from being an exciting new frontier to something that now demands more careful consideration.
Another factor that contributes to the decline of NFTs is the level of financial uncertainty involved. Unlike traditional investments, which have long histories and established trends, NFTs are still relatively new, and their value can fluctuate dramatically. Someone might spend thousands of dollars on an NFT, only for it to become worthless within a few months. This volatility makes NFTs a risky bet, especially for casual investors who might not have the time or resources to closely monitor market trends.
Furthermore, there’s the issue of utility. While some NFTs offer real-world benefits—such as exclusive event access, royalties, or unique digital experiences—many are simply speculative assets that hold no inherent value outside of what the market dictates. This has led to skepticism from those who see NFTs as little more than digital collectibles that may or may not hold long-term worth.
My final thoughts
All of this brings me back to my initial impression of NFTs: they feel like a digital game for adults. There are players, strategies, and rewards, but at the end of the day, it’s still a game—one that requires significant money to play and an even greater willingness to take risks. While some people have profited immensely, many others have lost money in the process.
In conclusion, while NFTs are undeniably an innovative concept with potential, they aren’t necessarily the revolutionary financial tool that some make them out to be. Their success depends largely on market demand, technological advancements, and the ability to provide real-world value beyond digital bragging rights. As we move further away from the pandemic era that fueled their rise, it remains to be seen whether NFTs will evolve into something more stable and practical or fade into history as a fleeting trend.
For now, I remain intrigued—but skeptical.