When it comes to things that can become NFTs, the sky’s the limit. Anything can become a token and is thus recorded as a unique item in the blockchain. So, although people are currently toying with the idea of selling virtual real estate in digital worlds using NFTs, they’re also eyeing NFTs as a better way of conveying title in real-world real estate transactions.
For most people, NFTs really aren’t going to affect their investment decisions or real estate transactions. Right now, NFTs are largely the playthings of the ultra-rich and considered more akin to digital collectibles than true investments. They’re status symbols that may be capable of appreciating in value but are so volatile that they could just as easily have all value wiped out in a moment.
Real estate investors, and even homebuyers, may one day be issued an NFT with the purchase of real property, once the technology has matured and is more proven. It could be an easier tool to use for very real applications like title searches, making it easier and cheaper to issue title insurance for both banks and transactional parties. But, as of today, this is only a far-off dream.
Keep an eye to NFT news, but don’t bank on it right now. Unless, of course, you’re in the market for a pocket full of collectible pixels.
Would you buy a slam dunk by LeBron James for $208,000? How about a digital house for $500,000? For most people, that’s a hard no. After all, why in the world would you buy something digital for so much when it could be easily pirated and distributed elsewhere?
Well, that’s the funny thing about non-fungible tokens (NTFs) and why they’re starting to take the world by storm. By definition, non-fungible tokens are unique (the non-fungible part), and even though they exist in the digital world, they’re able to be secured and tracked using blockchain technology. Yes, the same blockchain that’s made Bitcoin, Dogecoin, and all the other -coins possible.
NTFs are wholly unique items, albeit digital ones, and that’s part of what gives them value to collectors. But that’s hardly the whole story.