Will Most NFTs Be Worthless In The Near Future?

For those who are interested in NFTs, you should listen up. There are strong reasons to believe that most NFTs could be worthless in the near future. 

If you don’t know what NFT is, make sure you check out this article on what is NFT and all the basics that you need to know. What are NFT and all the basics?

And maybe even this article on whether you can really make money with NFTs. Can you really make money flipping NFTs? 

This has happened before

Now that we know what NFT is it’s not hard to draw a parallel to the dot com boom of the 90s. In the 90s, the internet took off and many companies were founded that got nowhere. Many of these companies bought domain names to make their companies seem legit but of course, most of them failed. 

Most are here for the hype

Just like how there are tons of websites but only some of them succeed, most NFTs created today are people who are eager to jump in on the hype. Most won’t succeed. 

Who can guarantee the artist won’t create another NFT exactly like the one you bought? 

When you buy an NFT, you’re banking on it looking unique. Just because the NFT you bought has a unique blockchain that no other NFTs have doesn’t mean that other people will think it’s one and the only. 

Many NFT collections out there make everything they sell look almost identical except for minor changes that are hard to grasp for a new person looking at the NFT collection they’ve never seen before. 

Unless you spent some considerable amount of time looking at these NFTs, you won’t know for sure what exactly is different from one NFT to another. 

Okay, let’s say this NFT collection that you bought from, makes every NFT look drastically different from one to another. You still can’t be sure that the artist won’t upload another just like it in the future under another blockchain. Theoretically, that NFT would be “unique” but it sure doesn’t look unique. 

Is there a long-term vision?

Most NFTs being bought and sold don’t have a long-term vision. The developers come together to create and promote the art and then that’s it. They stop promoting the artwork and it fades from people’s memory. Those who own it can’t sell it because no one wants it. 

Do people want to get in on the long-term vision of the NFT?

Yes, some NFT projects do have a long-term vision but it doesn’t necessarily mean that people want to get in on it. Most people are just there to make a quick buck flipping the NFT and once it has been flipped enough times for the price to stabilize, people will realize that no one is buying anything up. 

In order to not lose money, many will undercut each other and the floor price will drop very fast. You may not even be able to sell it for half the price you bought it for. 

Most people are paper-hand not diamond-hand 

Those who are paper-hand are those who flip NFTs for quick profit without holding it and hoping the price goes up. If you’re holding for the long term, you’re diamond-hand.

The reason most NFTs will be worthless in the future is that most people in this space want to make money. They don’t want to hold their NFT for years to see if the price goes up. The moment the floor starts dropping, it’ll cause many of them to panic sell driving down the floor price more. 

How do I know if my NFT will be worthless in the future?

It’s best not to hold your NFT for the long term as most (90%) will not have any value in the future. You have to be quite lucky. Pray that some major name celebrity pick it up and all of a sudden, everyone wants one driving up the price. 

There are some well-known NFTs out there like the original Bored Ape that some experts believe will likely hold their value in the coming years. The cheapest one right now is $400,000. If you have that kind of money to spend on a Bored Ape, do your research and decide whether it’s a good idea. 

It’s best to assume that any NFT you bought will be worthless unless there’s a strong reason to believe it won’t be. 

Afterthought

We’re in a very hyped-up phase of NFT. Most NFTs created today are created by the people who want quick cash. They won’t be around to maintain the NFT brand they created and they certainly won’t care if it loses value in the secondary market because they already made their money selling it to you. 

You can certainly be a diamond hand and hold it as long as you want hoping the price goes up but 90% of the time, the floor will only drop over time. 

Your best bet to making money in the NFT space is to do quick flips. Hold for a few days or months at the maximum and sell it. 

Watch and observe the NFT cycles. What are the lowest prices people are willing to sell it for and the highest price people are willing to buy it for until the price change reverses to either continue rising or dropping. If you can observe the trend first, you’ll know when to buy and sell for lesser risk. 

Paperhands do make money in the NFT space despite the general hatred there is towards paperhands.