Although it’s not something I personally am into – fearing a total collapse of the established systems or the restricting of access to them to the injected majority – NFTs pose an interesting question: can they help you earn income outside of the system?
Given that they are a derivative of blockchain technology, and how many supporters of crypto and blockchain see them as the answer to state oversight, it’s worth exploring in a little more detail.
And, despite how much of a luddite you might be (as I am!), you cannot fail to ignore how such technology has captured the minds of many and when such things happen, opportunities are always not far behind.
In this guide, we’ll introduce you to the concept of NFTs and why they could change everything. Or not, as the case may be.
Either way, enjoy the guide!
Introduction to NFTs
With changes to our web technology, you may have realized that many people around the world have been using the term NFT. This term is an acronym for “Non-Fungible Token”, with fungible meaning, the ability to be easily interchangeable.
In its essence, it is the ability to see whether or not someone has received a document, with traceability, and authenticity ingrained in its programming.
The up trend in NFTs really took off in 2021 due to lucrative marketing alongside pop art culture on platforms such as Ethereum and Solana. With many projects not having much Utility the space seemed dead in the water, but with time more and more projects made it their mission to change this.
With concepts such as “Play to earn” video games and “Walk to earn” fitness apps taking over the market, more innovation was taking place and people were actually seeing an ROI on their NFT. This gave more incentive to hold them rather than sell them immediately and flip them as they would have in the past.
The Origin of Non-Fungible Tokens
The acronym NFT stands for Non-Fungible Token, which means it’s unique and will never be replicated. The concept of this in the market gives buyers/investors the ability to buy into a project while knowing that own a piece of the company in a unique, “one of a kind” way.
The first NFT was created on Namecoin by Kevin McCoy in 2014. Since then various projects on ETH and Solana have seen massive success and a rise in popularity. For example, in 2021 Solana saw its first big bull run in NFT markets with Degenerate Ape Academy and since then has maintained popularity through social media platforms like Twitter and Reddit.
What are NFTs?
There are various outlets for NFT and for the most part, they are items that represent “pop culture: and even “meme culture”. At the end of the day whether the art is actually good or bad NFT’s thrive on utility.
Having an NFT that not only looks good but can create a lucrative monetary ecosystem means that it’s possible to break away from the modern-day social construct of investment. That is a big deal because it will put investment power back in the hands of retail buyers and will allow people to be in charge of their financial future.
At the end of the day, an NFT represents more than just art, it’s a receipt. The technology allows people to prove that they are the owner of said merchandise and prove ownership of their investments. Whether it be a photo or a piece of real estate
In simple terms, an NFT represents a form of receipt. It shows the authenticity of a product and can verify that someone has received it. Alongside that, it proves ownership and is traceable if a “hack” were to occur and someone stole it from you.
The way that this can be proven is through a series of nodes and verification processes that take into consideration the person’s IP address and even the device they work on.
Moving forward, NTFs, whether or not projects follow through on their promises, will be a part of our future. That being said it’s important to realize that the utility of such technology hasn’t been used in a way that can positively impact our society.
As for the moment, NFTs have been the talk of the town in the form of speculative arguments. Many people, though fully invested, have seen time and time again that even though you may package an idea well, and create demand, they are still room for error. In actuality, there seems to be a legitimate use case for blockchain tech and that lies in video games.
Many gaming studios are now chasing this trend and making video games that are utilizing Play to earn functions in order to corner the market. Games such as panzer dogs promise early investors the ability to one day be able to play a video game in order to generate an income to replace modern-day jobs.
That being said it’s important to understand that it’s not the promise that makes the NFT gold, but the team behind it. One must do their own research and find a project that is legitimate. That’s because there are a lot of projects that promise high gains for minimal effort and the team doesn’t have proper experience either in the market or in the gaming industry.
For example, Panzer Dogs is owned by Lucky Cat studios which have over 100k Downloads and a user base, alongside that they have made a point to hire an Ex-Google Play manager as their advisor. This “doxing” gives them legitimacy in the space and creates trust between them and their NFT investors.
At the end of the day, we are all given a choice in how and what to invest in. When it comes to the NFT space, it’s always important to do your own research, and when in doubt ask the people involved in the project. If they take offense to this, it may be a sign that they aren’t as committed as they say they are.
NFTs as a Source of Income
NFTs, or non-fungible tokens, have become an increasingly popular way for artists, creators, and entrepreneurs to generate income. NFTs are digital assets that are unique, meaning that no two are exactly alike.
This makes them attractive to collectors and investors alike, as they can be bought, sold, and traded on various online marketplaces.
What Are The Opportunities For Income?
One of the biggest opportunities for income from NFTs is through selling artwork. Digital art, in particular, can be sold as NFTs. With a unique digital asset, creators can set their own prices for their art and can potentially make a significant profit from its sale. Additionally, creators can also receive ongoing royalty payments for each sale of their digital artwork.
Another potential income opportunity with NFTs is through trading them on digital marketplaces. By buying and selling digital assets, investors can create a portfolio of NFTs and generate a steady income stream. NFTs can also be used to secure digital rights to music, videos, and other digital assets, which can also result in income for creators.
What Are The Risks Associated With NFTs?
While there are potential income opportunities with NFTs, there are also risks associated with them. One of the biggest risks is the lack of regulation for digital assets, as the market is still relatively new and unregulated. This means that investors and creators may not be fully protected in the event of a dispute or fraud. Additionally, NFTs can be subject to market volatility, meaning that their value can fluctuate greatly over time.
Furthermore, there is also the risk of hackers and scammers targeting NFT owners. As NFTs are stored on the blockchain, they are vulnerable to malicious attacks. Therefore, it is important for NFT owners to ensure they are taking the necessary steps to protect their digital assets.
My Experience With NFTs
The bull market of 2020 saw a surge in the NFT market and with it many opportunities to make money. As an artist, I saw a great opportunity to capitalize on the trend with my own artwork. I began researching the various blockchain platforms available and settled on Solana for its relative ease of use, low transaction fees, and reliable network.
To start, I set up my wallet, purchased some SOL tokens, and began searching the NFT marketplaces for lucrative opportunities. I was able to quickly identify and purchase several NFTs from various creators and projects, which I then flipped for a profit. I was able to use the earnings from this to reinvest in more NFTs, building a portfolio of digital artworks.
Alongside this, I also set to work creating my own 1 of 1 art pieces to sell as NFTs. I experimented with different media and techniques and eventually settled on a digital art style. I worked hard to create an entire collection of digital artworks and released them as NFTs on Solana.
The response was overwhelming. Collectors from all over the world began to purchase my artworks, and within a few days, the entire collection was sold out. I was amazed to have been able to make such a success of my artwork and to have profited so much from the bull market.
The bull market of 2020 was a great opportunity to make money in the NFT space, and I am grateful to have been able to capitalize on the trend. My experience with Solana was incredibly positive, and I am sure to continue to use the platform in the future.
Final Thoughts: NFTs As A Source Of Income Outside Of The System?
In conclusion, while there are potential income opportunities with NFTs, it’s important to weigh the risks against the potential rewards.
If you’re a bit of a luddite like me and NFTs are not your thing then you could try some other methods for making an income outside of the system; like worm farming for profit or teaching what you love.
By understanding the risks and taking the necessary precautions, you can make informed decisions about your investments and protect your digital assets.