The recent cryptocurrency crash has investors worried about what the future will look like for the crypto and NFT markets. Many were convinced they were witnessing the demise of digital currency and collectibles. But leading experts at Arkham put the rumors to rest. The brand considers why it is highly unlikely that these markets will go anywhere but up. Amid the turbulent swings and recent falls, we take a look at what the brand had to say about the promising future of crypto and NFT.
“Cryptocurrency has gone mainstream,” says Arkham, “It’s a $2 trillion industry currently, and it will continue to grow even more.” A few years back, calling yourself a crypto investor was a novelty. But since 2018, there has been a 237% jump in the number of Bitcoin wallets, and today about 22% of the US population owns a share of Bitcoin. Proof of its widespread acceptance is also the fact that El Salvador now recognizes it as their official currency, becoming the first country to do so. Still, according to Arkham, it certainly won’t be the last.
Metaverse, the Web3-based network of 3D virtual worlds, is rapidly shaping our future. Backed by Mark Zuckerberg and Facebook’s billions, the parallel virtual plane of existence will soon trump the physical world, or so predicts Arkham. And when that inevitable future arrives, NFTs will play a central role. In order to own anything in the metaverse, from videos to real estate, you need non-fungible tokens. They will serve as the legal agreement of ownership of digital assets in the virtual land, making their existence essential. As the metaverse grows, we will see NFTs the subsequent resurgence of NFTs as well.
Arkham reiterates that without crypto, there will be no NFT transactions since you need cryptocurrency, or digital currency, to buy the digital tokens. The system works in such a way that to buy an NFT, you need an Ethereum compatible crypto wallet or ETH.
Arkham notes how beneficial NFTs are when it comes to IP or intellectual property. To understand that, you need to understand that NFTs, or non-fungible tokens, are digital tokens that are unique, irreplaceable tokens. They are a type of digital certificate used to authenticate ownership of assets. Each NFT comes with a unique identifier and this data cannot be pirated, making it easy to trace ownership history. This allows the creator to distinguish the real from the fake or the original from the copy.
At a time when artists suffer from IP rights violations due to piracy and illegal distribution, they see NFTs as a big win. Now artists who create NFTs for their artwork can ensure that they receive the financial compensation they deserve. It also gives art collectors confidence that what they own is the original work itself.
Arkham believes that their central roles are reason enough to understand why the crypto and NFT markets will definitely flourish in the future.
