The head of the Hong Kong-based company GBV Capital for investments in development based on blockchain, Christian Ng, spoke about investments in collectible tokens. He believes that NFT and Bitcoin have a lot in common.
In an interview with The Millennial Source, Christian Ng stated that the similarities between Bitcoin and NFT lie in creating a community that brings together people with similar views. He named Bitcoin as the first “NFT” to be issued in a limited supply of 21 million coins, as they can be considered relatively unique compared to regular money. People who own even a small amount of BTC feel like they are part of the community, Ng said.
According to the expert, there are three main factors fueling the development of the NFT industry. First of all, this is traditional art. Artists are beginning to actively explore the possibility of digitalizing their work. A striking example is the sale of a painting by the artist Beeple in the form of NFT for $ 69.3 million. Second, it is the creation of communities, the participants of which become a limited number of people. The widespread demand for video games and the development of the metaverse concept is also playing an important role in the spread of NFT, Ng said.
At the same time, the specialist warns users that if they plan to buy collectible tokens, they need to be prepared for a possible loss of funds. Therefore, he recommends that investing in NFT be considered a simple purchase of art. Even in the worst-case scenario, users will have digital artwork. Ng also talked about his own experience of investing in NFT.
“I bought two NFTs for about $ 200 for my birthday. Many people thought I was crazy after spending $ 400 on JPEG pictures. I purchased them for fun, I loved those artwork and I watched the community develop. This investment paid off and I sold one of these collectible tokens for $ 100,000, ”said the head of GBV Capital.
He stressed that any NFT issuer is interested in the success of their token, and the team behind its development might be really passionate about an idea. At the same time, it is not known what may happen in the future. It is likely that some new token may emerge that has many uses, added Ng.
Visa cryptocurrency project manager Cuy Sheffield also believes that non-fungible tokens have made the cryptocurrency industry more interesting.
