The NFT Bubble.
Is the history of the dot com crash being repeated in the NFT world?
We all know about the dot com crash and how it crashed the market and brought in recession. Similar patterns can be detected in the NFT marketplace at the current date. Unpredictable rise of the internet companies and increased market cap during the late 90s, the burst of the bubble, and recession, the pattern seems to be returning.
NFT marketplace has also hyped exponentially in recent years. There have been 5.2 million NFT sales totaling $162 million over the previous four and a half years by the start of 2021. After more than a year, the sum has risen to 41 million NFTs worth $25.8 billion.
Digital pictures selling for millions of dollars and continuously rising in value are making people rich. The role of NFT here is not just to make people rich but there are certain utilities tied to it. NFTs which have utilities tied to the real world are worth the value but what about the rest that is just exponentially rising in value without any utilities tied to the real world.
Currently, there are millions of NFTs being created and sold, mutant shinobi bunnies, meta pizza, wolf boss, dragon verse, and many more. Literally, there are millions of NFTs being minted and invest in nft traded for profits. Many of them don’t even have a real-life utility and are being traded just for the fun of earning. Many of them who have real-world utility don’t have valuable utility.
The values of NFT are driving up exponentially all because of the hype created in the market similar to the hype created by the dot com companies in the 90s. Similar to the dot com crash may be the NFT market is also going to crash bringing in losses for many investors and collectors. For creators, however, there is little downside to it as they create and crypto wallet may make money they sell and also get a royalty. From all the hype going on, I think the NFT bubble will blast soon and I think it has already started as a downfall in the market can be seen already.
Although a bubble, we cannot ignore the rest of the history regarding the dot com crash and how that crash brought in a revolution. Various companies like Amazon, eBay, Microsoft, Google, and Apple survived the dot com crash, and look at them now these are the companies that brought in revolution and have changed a lot in the technology sector. Similarly, after the burst of the NFT bubble, there will be certain projects remaining that will change the face of the internet and take it towards web 3. When you have any inquiries about exactly where and how to work with crypto wallet may make money, you possibly can contact us in our page. 0.
I think the majority of NFT projects will go to zero and some that survive will change the face of the internet bringing in a lot of technological advancement. NFTs that have real-life valuable utilities will become the gateway to the metaverse.
NFTs are the platform for the shift we are making towards the digital world. Not every project will make it only some will survive the burst of the bubble and I think those projects will be responsible for shifting us towards the digital world. Believe it or not, concepts of NFTs like smart contracts, and digital utilities, are going to change a lot in the technology sector.
As said history repeats itself, I believe the same will happen in the NFT world, the bubble will burst collapsing the majority of NFT projects and some that remain will be the change driving us into the world of web 3.0.
What are your thoughts regarding this? do leave down your opinions in the comment.
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