Cryptocurrencies Benefit from Growing Popularity of NFTsPublished November 14, 2021 by Florin P
NFTs have gained a lot of traction in recent years and their growing popularity acts as a catalyst for crypto currency growth.
A decade ago few people knew anything about crypto currencies and many of those who did, regarded them as nerdy. After being dismissed as silly and downright useless, crypto currencies were bashed as dangerous investments that made no sense. Today, they are widely accepted as interesting investment tools that can protect players from the threats of inflation.
NFTs are going through the same process and we are still at the point where very few people understand their purpose. The difference between crypto currencies and NFTs is that the latter have benefited from the widespread adoption of the former. People are no longer so quick to judge and dismiss the latest advancements of technology as useless. The best part is that they complement each other and crypto currencies also benefit from the growing popularity of NFTs.
Artists, Creators and Investors Love NFTs
NFT stands for non-fungible tokens and they are basically digital deeds of ownership. They provide their owners with the opportunity to distribute content quickly, effectively and securely over the blockchain. Not surprisingly, the interest in this technology and crypto currencies by association is growing at the same pace. Not only individuals have learned to appreciate the perks of non-fungible tokens, but also major companies, such as Red Bull, Disney and Reddit.
Although they are still insufficiently understood by the broad audience, NFTs are not regarded with suspicion. The fact that famous artists and athletes have highlighted the advantages of using them has contributed to their surging popularity. Consumers who are even remotely familiar with the crypto space want to expand their portfolios with this new asset. Since it is based on block chain technology, it requires them to acquire digital money to make the purchase.
NFTs Appeal to the Young Generation
In spite of making many people rich and proving their worth as investments tools, crypto currencies are still frowned upon by elderly people. Young individuals are more likely to invest in digital money, as they realize its advantages over fiat currency. The same goes for NFTs, which are now more reasonably priced, compared to the insane initial values. This has a two-pronged effect, as it allows regular people to purchase them, while quickly creating a community of like-minded individuals.
The young generation is expected to propel the NFT industry forward, while indirectly benefiting crypto currencies. Compared to Bitcoin which had to prove its value over the years, non-fungible tokens are expected to grow much faster. That’s because the early suspicion regarding crypto currencies has been replaced with the fear of missing out. The bottom line is that the growing popularity of NFTs acts as a catalyst for crypto currencies and both are expected to gain further traction in the foreseeable future.