Throughout the start of 2021 there has been a lot of ups and downs in shifting markets as retail trading gains more traction and emerging markets have caught the world by storm – one of these markets emerging had been within the Ethereum blockchain of a cryptocurrency, the NFT. A relatively simple concept in theory, in its current form serving as a way to manage collections and ownership of digital art or artistic goods online, but with many problems in practice. What led to the enormous growth in popularity, and what has inevitably led to the quick downfall at the same time?
The early success largely came from the hope of a huge pay-out, stories quickly started to emerge of individuals that had managed to hit big early on and pull in a huge sum of money – the most prominent is certainly with the ‘Beeple’ artwork that was sold for $69 million, and similar stories such as the Twitter CEO selling the first-ever tweet on the platform for nearly $3 million too. Whilst only very isolated cases of those who had managed to win big, it led many younger artists or budding content creators to start minting their own NFT’s in hopes of realizing some big pay-out, but only a limited few would be able to garner similar attention for their own pieces.
(Image from fortune.com)
As quickly as it grew, similar reasons may be just as important for why the bubble is bursting – with so many potential sellers caught up in the big hype wave surrounding the NFT market, questions quickly started to arise with problems around ownership and copyrighting with goods being sold, after all how could there be any guarantee that once a piece of artwork, for example, is entered into the blockchain and sold that the ownership is guaranteed for the customer and has been part of the reason for uncertainty around the market as a whole. As the market cools down a little some of the problems will be somewhat resolved, but it’ll take time before things become a little clearer and before things are figured out to give the best experience for sellers and customers alike.
The good news for both however is that the support is definitely there for all things crypto as it begins to seep into many different markets – the recent news that bigger companies like Bitcoin would be accepted for payment for cars like Tesla in the new future and having it already be introduced for some online services like these no verification casinos that accept different crypto shows how far the market has come. With mainstream attention now on all things crypto, there’s certainly plenty of interest, and the final steps will be ironing out all of the details that allow for newer markets like NFT to grow and be implemented properly and avoid a similar issue of a bubble growing and bursting before things really get off the ground.
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