This is the question we’re all asking. It seems that everyday there are hundreds of new NFT projects coming put. Some are legit with real teams and a long-term vision, where as others are not and engaging in “rug pulls” taking advantage of those less educated on the subject. NFTs have had a hot start to 2022. A year ago almost no one knew what an NFT was and now they are the hot new crypto investment filled with thousands of communities on Twitter, Discord and many other social apps. The rise of NFTs however has sparked an interesting question. Are we in a bubble? This is the million dollar question and obviously nobody knows. However there is pointing evidence that suggest we may be in an inflated environment which is leading to a lot of hype, FUD and FOMO. NFTs are complex, but essentially they are digital tokens stored on a blockchain that point to a web address or another location, containing a piece of art, audio, video, or even physical works — literally anything anyone is willing to “acquire”. They’re basically another type of cryptocurrency, except they cannot be replicated on the same blockchain. 

Are alternative investments being sought out?

An an age where inflation is at an all time high, people are looking to alternative investments. NFT are sought to be a potential asset that may play a crucial role in the upcoming web3, blockchain and metaverse revolution. With stock markets and valuations at an all-time high as well this could be a potential investment with high returns that one can’t find elsewhere.

The hype is continuing

The hype for NFTs has only been growing and growing Whether this is all FOMO or not is another question. However on cannot doubt that this is what everyone is talking about from celebrities to fortune 500 companies making bets on it. Twitter recently announced an NFT profile picture, where

As of now the price of BTC has seemed to have not much of an impact on the hype of NFTs. BTC has been on a downward trend recently, but that hasn’t stopped the NFT craze. If you go on Twitter or reddit, it’s constant NFT talk and one could use that as a bullish indicator. You either hate or love NFTs. The crypto community has had some very successful projects such as Bored Apes and CryptoPunks that have seen NFTs sold for over 100 ETH.

The Technology is Here to Stay

There is no doubt that web3 is revolutionary technology that is still in the works. Blockchain, the technology powering NFTs, has now been around for over a decade. There has been an ever-growing community and many developers seem to be pivoting to web3 in waves. If this trend continues and some of tech’s best minds start working on web3, then that has to tell us something. The whole point of blockchain is to have a decentralized system that has no one central owner. This model obviously has its pros and cons and there will most likely still be a centralized version of a product to ensure stability and security, Solona is a great example of this. Whether its NFTs, DeFI, smart contracts you name it, having a distributed ledger that is immutable and has no one party saying what you can and cannot do is still a technology that I would not be against.

Conclusion

Current art related NFT trend can be considered as a bubble, but the tech itself is not. The blockchain, web3 and crypto is here to stay. Only time will tell what will happen with a lot of these NFT & crypto projects because yes, let’s be honest a lot of these are scams and have no real team or product backing them. Is there fundamental value for NFTs? That is for the market to decide, after all this was a major product to come out of web3 use case

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