NFTs in 2022: What to Expect
Despite first being created as early as 2014, it was 2021 when NFTs really became a part of mainstream crypto activity, with millions of dollars being spent developing and acquiring these assets over the course of the past year. With this huge growth currently occurring, we thought now would be the perfect time to take a look at what’s still to come from NFTs – despite the term being added to the dictionary last year, there are still so many questions to ask regarding their purpose and value, so we’ve put together this post to help you understand what the future may hold for non-fungible tokens.
Despite our key business focus not falling within the NFT industry, BCB Group is still able to offer key insights into the topic as an industry-leading expert in the field of cryptocurrency and digital assets. Cryptocurrency is the backbone of the NFT industry and is the key functional piece of these assets; without digital currency tied to your NFTs, your assets will hold no value, which defeats the purpose of their existence. This serves the exact same function that a cash valuation of artwork in the physical world, giving assets a monetary value from which they can be bought or sold.
What Does 2022 Have in Store for NFTs?
Blockchain gaming will be one of the best use cases for NFTs
Whilst this point probably isn’t groundbreaking, it’s an incredibly important one to cover, as effective use cases for NFTs are something that we can see having a huge impact on adoption over the coming year. Whilst many people are aware of the fantastic investment opportunity that NFTs can present, far fewer people have been able to understand the use cases for these types of digital assets. In 2021, blockchain gaming projects hit a $1 billion milestone for transaction value; this is a significant advancement and goes to show the level of funding and utilisation that is now taking place. With millions of people worldwide now engaging with blockchain-based games, it is clear to see that blockchain gaming is likely to become a huge driving force behind the use and investment in NFTs. Play-to-earn games have shown us how effective this payment model is, creating something of a virtual economy within the gaming world that is powered by cryptocurrency that’s native to these gaming communities.
With the expansion in play-to-earn opportunities, we predict more people will begin to spend more time playing online games. NFTs will play an important role in tying the virtual economy to the physical one as this trend continues. Due to NFTs’ crucial role in generating and retaining value in digital spaces, their importance cannot be overstated. Cryptocurrencies function as tools of exchange, but without the presence of NFTs, none of the things we can currently own or create in the gaming worlds and metaverses can be considered distinct or self-sovereign.
In any gaming environment where there is an opportunity to build and retain value, NFTs can be profitable. At present, this value is primarily associated with virtual objects, such as weapons, vehicles, and character outfits. In the future, however, we expect that NFTs will have a large impact on the identity of a gamer, as well as their reputation and standing within the gaming community.
NFTs will become a part of the retail sector, particularly in fashion
A few of the first brands to see an opportunity for NFTs to be more widely used were fashion designers who create unique digital gear for gamers. Fashion studio RTFKT is renowned for its viral sneaker designs, memes and collectable exclusives. Shoppers can wear the sneakers and jackets they purchase during exclusive drops in games and virtual worlds. When questioned on the topic, a representative from the brand stated: “The RTFKT project was scheduled to take off in 2040, but the human development in consciousness has accelerated faster than anticipated. We are here to accelerate our digital future now.”
Even before RTFKT, digital clothing was gaining momentum, with companies such as DressX selling non-unique digital fashion pieces that overlay onto customers’ photographs for $40 to $250. Through NFTs, RTFKT is able to elevate the proposition and offer unique and exclusive products to each customer, allowing it to justify its five-figure price tags to some degree.
Effective Crypto Banking Services are Incredibly Important
One of the biggest challenges for new investors in this area is finding a partner that offers solutions related to cryptocurrency – although there are numerous providers out there, this does not mean you’ll ever find something that works for you. Our clients are able to take full advantage of the crypto market and find freedom in their activities because BCB Group bridges the gap between platforms and partners to create a holistic experience that’s hard to match.
As a result of our experience across a variety of fields within the fintech and cryptocurrency space, BCB Group is able to create a unique environment in which institutional investors are able to profit. The BLINC payment network allows you to send or receive cryptocurrency payments instantly without enduring long processing periods caused by fraud checks and AML policies. As a BCB Group user, you will already have passed the necessary checks, so you’ll be able to send or receive payments instantly.
Get in touch with our team today to learn more about our best-in-class platforms and the high level of service we offer. Alternatively, you can head over to our Insights page where you’ll be able to find information relating to a number of key sectors within the cryptocurrency industry. These articles are insightful, easy to digest, and completely relevant to the current market, giving you the right information to make key investment decisions in an instant.
