The hottest market sector right now concerns NFTs. Non-fungible tokens, essentially unique digital collectibles, have boomed this year as endorsements from the likes of actress Lindsay Lohan, musician Grimes, and Dallas Mavericks owner Mark Cuban helped them gain wider acceptance and pop-cultural cachet. Just last week, an investor paid $69.3 million for a mosaic of 5,000 artworks. This is fueling the rise in NFT stocks.
The fact is that as long Bitcoin keeps rising, NFTs are here to stay. The surge in Bitcoin has created an untold number of millionaires and billionaires. By digitizing the art market on the blockchain, it allows these crypto millionaires to spend their crypto without converting to cash and triggering a taxable event. It allows the investor to diversify their crypto holdings and also delivers bragging rights.
The fact is no one should be surprised what is happening with NFTs. A first edition book is worth much more than a third edition. A forgery has no value. The blockchain authenticates and confirms the purchase. There can never be a forged copy because the blockchain address is unique. There’s only one.
This leads us to where the opportunity lies. Most penny stock investors have just a few thousand dollars to invest, some even less. Buying 1 Bitcoin at $60,000 does not lend itself to much upside. Besides, the easy money has already been made in Bitcoin. Had you invested a few thousand dollars in Bitcoin ten years ago, you’d be a multi-millionaire.
The best way to play the NFT boom is with NFT stocks. We are already seeing major moves as investors are jumping on any stock that can be tied to non-fungible tokens. In this article, we take a look at some NFT stocks that are running and our outlook for the non-fungible token space in general.