Debunking 3 Huge NFT Myths

published on 14 July 2022

Tired of having to explain to people that NFTs are not in fact a scam, and they do actually have use cases beyond just being whatever those apes were? Amen.

As with any new and controversial technology or fad which garners high levels of press attention (and high sums of money changing hands), there are certain myths that have arisen about NFTs.

Let’s take a look at some of the biggest and get myth-bustin’!

⛔️ NFTs will get you rich quickly… 

That’s so November 2021. Well, kind of. This was indeed when there was a peak in the value of NFTs being sold, as you can see here. Since then, the value of NFTs on average has fallen – or plummeted, in some cases.

Although there were undoubtedly those who did make money with NFTs before the bubble burst, seeing them as a means to get rich quick fundamentally understates what NFTs are. 

For one, they are not merely a visual form of crypto, and they are not always quickly and automatically produced. NFTs are digital assets and can represent artworks, limited edition merchandise, proof of provenance for physical items, avatars, tickets to enter events – even personal records.

While many of these use cases do also carry an inherent value, the “use” of the NFT isn’t simply as a token of wealth in the first place.

And yes – the bubble has burst. If you are going to spend millions on a Tweet and expect 20x the resale value, you should strongly reconsider your expectations.

🤯 NFTs are a scam

“Scam” is the cousin of “get rich quick”. Yes, there are folk out there who took advantage of the hype surrounding NFTs to make money, likely knowing the bubble would burst and it would be a risky investment.

However, it’s a very broad generalization to say that all NFTs are a scam. Our advice? Whether you’re new or experienced in the space, do your due diligence before buying. If you’re being promised ridiculous returns, raise the red flags.

This is precisely why we need to raise awareness of applications for NFTs, which brings me to our third myth…

🙃 NFTs are useless

In short, NFTs have many many potential use cases! As with any hype cycle, once the initial hype has calmed down and people are not seeing NFTs purely as a tool to generate wealth, this is where some of the most interesting use cases are emerging.

One of the most obvious is art. NFTs represent a new avenue for artists to allow others to invest in their work from around the world, lowering barriers to stepping into the art world in the first place. There have also been collectives and individuals from underrepresented groups accessing the world of art and sharing their unique visual creations through NFTs, for example, Black NFT Art or this list of talented queer creators.

We’ve already taken a look at some other innovative use cases in this article, but to sum them up, these included NFTs being a way to tokenize assets of any value and at a lower cost, NFTs being used as tickets for events, and NFTs as a way of raising funds and awareness for philanthropic causes.

And how about NFTs being a way to change the way we use badges in software as rewards, boosting one of the tried-and-tested mechanics of gamification? (Yes, we’ve written about that too.)

There are many other potential ways to use NFTs beyond these, which is why now is a more exciting time than ever to be in the space!

There are more myths to bust – but in the meantime, what are some of the biggest NFT myths in your opinion? Let us know!

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