Tuesday, December 6, 2022

Are NFTs Worth It?

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With the crash of the crypto industry, NFT headlines are everywhere. Skeptics believe NFTs are a bubble gone bust, while supporters claim NFTs will soon become a standard tool for establishing identity and ownership. If you’re unsure which side to go with, stick around to find out if NFTs are a good investment.

What is an NFT?

Non-fungible tokens (NFTs) are virtual certificates proving the exclusive ownership of digital goods. Real estate, designer shoes, memes, songs, clips, in-game items like avatars and event tickets, etc.—anything digital can be an NFT.

NFTs are built on the same technology as Bitcoin and Ethereum. Yet, they aren’t each other’s doppelgangers. Cryptocurrencies are fungible as we can exchange them for one another. NFTs are irreplaceable. Every NFT has a unique identification code that distinguishes it from others.

Also Read: Laura Woods on NFTs & The Revolution In Ownership

The most expensive NFTs ever sold

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Beeple’s NFT sold for $69 million (source: The Verge)

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To give you some actual data about how much NFT owners can make, let’s look at some most expensive NFTs ever sold. It doesn’t mean you’re bound to earn this kind of money, but it’ll show you that NFT sales can reach incredible levels.

  • In 2021, digital artist Beeple sold a collage of 5K NFT pictures for $69.3 million.
  • In 2021, almost 30K collectors purchased the Merge NFTs created by renowned digital artist Pak for $91.8 million.
  • Inspired by the cyberpunk movement and electronic music artists like Daft Punk, Larva Labs designed CryptoPunks tokens, of which No. 5822 sold for $23.7 million this year.
  • Christopher Torres created Nyan Cat, a meme showing an animated flying cat with a pop-tart body leaving a rainbow trail, which was sold for about $690K last year.
  • Even a simple tweet can be a lucrative NFT. For example, Twitter founder Jack Dorsey sold his first tweet as an NFT for $2.9 million last year.

How much can I realistically make from my NFTs?

The figures from NFT earnings in the previous section might seem unrealistic. Yes, they’re real, but not every NFT owner can afford those prices. According to market tracker NonFungible, the average sale price of an NFT is somewhere in the region of $2,000 at the time of writing this (August 2022).

The best thing about NFTs is that you don’t have to be a crypto guru to benefit from them. Although individual digital artworks are the most profitable non-fungible tokens, you don’t need to become an artist to grab that juicy piece of the NFT market. Simply playing video games can let you make some cash from NFTs.

Also Read: Inside the NBA’s Most Expensive Top Shot NFTs

Can I forecast my earnings from NFTs?

Short answer–yes, you can. One of the best ways to know your future earnings is to find an NFT project with a projection calculator. For example, Wizardia, a P2E strategy game where players get rewards by monetary investments or are paid for the time and effort investments in the game, has its own projection calculator

With Wizardia, players obtain and upgrade wizards or invest in gameplay arenas, both of which are represented by NFTs. Wizards come in rare, epic, and legendary formats, giving them various levels of combat power.

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Arena Genesis NFTs are sold in seven rounds, with the sixth one being the current one. So if you decide to participate now, your set NFT price will be $300. Then, let’s say, you purchase 100 NFT units when the Wizardia Token price ($WZRD) is $0.14, expecting at least 30K active players daily. 

If you do the above, your investment will be $30,000. It might seem like a lot, but keep reading! This investment will bring you a staggering monthly revenue of $9,615,38, with a monthly ROI exceeding 32%. In addition, if you stake, you’ll get additional rewards to the tune of 55K $WZRD tokens.

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Check any calculator like that to find out how much your NFTs could be worth. Yet, don’t forget that any calculator tool shouldn’t be considered financial advice!

Final thought

Whether NFTs are a good investment is down to your basic knowledge of crypto, creativity, and the effort you’re putting into your NFT investment. The crypto market fluctuates, so forecasting your future earnings can be difficult. However, participating in NFT projects with projection calculators can help you better grasp your possible future profits.

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