NFT Picked As Word Of The Year
Nov. 27, 2021 | Leslie Michael Jr. | Crypto Coin Show
Dictionary-maker Collins picked NFT as its “word of the year” for 2021
Collins defines NFT as “a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible.”
The NFT market rose 11,000% in 2021 in a similar fashion to bitcoin’s rise in the earlier years.
Early adopters took advantage of their valuation jumps as newer adopters are still making their way into the market. All of which suggests the newest crypto marketplace is still in early rounds of growth.
Bitcoin, Ether, and most cryptos on the top 100 blockchain assets are fungible. A million bitcoins in France will have the same intrinsic value as a million Bitcoins in Peru. Buy another Bitcoin and its value will be the same as the other one.
NFTs (Non-Fungible Tokens), in comparison are unique, like numismatic coins or artwork or even rare baseball cards. If someone trades one NFT for another, they are getting something completely different.
NFTs can really be anything digital the markets seems valuable. The excitement surrounding it as digital art has made the biggest buying splash. Everything these days is deemed as art, even tweets.
Twitter CEO Jack Dorsey, the billionaire co-founder sold his very first tweet as an NFT that lives on the Ethereum blockchain for $2.9 million dollars.
The tweet from Dorsey was sold on the Valuables platform in an auction format.
The artist “Beeple” sold his 5,000+ digital art collection for $69 million earlier this year. This sale made Beeple one of the best-paid artists and paves the way for more artists to pay attention.
According to JP Morgan, the entire NFT marketplace is over $7 billion. The NFT market is now worth more than $7 billion, JPMorgan says. “The activity in NFT markets appears to be still rather irregular with occasional bursts rather than sustained increases in volumes,”
More marketplaces are coming up each year. Morgan Stanley forecasts luxury marketplaces becoming a $56B market by 2030. NFTs as a whole could grow to be a $240 billion market by the same time.
“As more aspects of people’s lives move to the internet, demand for digital fashion and luxury goods is set to increase dramatically in the coming years,” the banking giant said.
The growth in the NFT market has caught the attention of legacy auction houses like Sotheby’s and Christie’s, which have both launched their own NFT marketplaces to get in on the action. Those moves should only add to the sector’s continued gains, according to the note.
