The metaverse world is fast-growing, and people are now able to invest in projects that were never there before. Some years back, stocks and other corporate-issued securities were the main investment avenues for most people, but that has since changed. These days, cryptocurrency and NFTs are among the most popular investments, and for good reasons. From their recent performances, there is a likelihood that these investment channels will continue growing and getting more robust.
NFTs are not an asset class
For those who are not yet initiated into the world of investment, NFTs are not considered to be an asset class. NFTs employ the highly revered blockchain technology to sign up for ownership digitally. In essence, this type of asset ownership can be compared to someone who owns the logbook of a car but not the car itself. While some people still don’t find it prudent to buy ownership of an asset and not the asset itself, NFTs have continued to grow exponentially.
But this doesn’t mean that investing in crypto and NFTs is an entirely bad idea, as there are many benefits that you can get from buying an asset that has been tokenized.
With cryptocurrency and NFTs, there are no restrictions regarding who can invest in them. The best part about these investments is that any investment that anyone makes is secured using a blockchain.
But why are NFTs and crypto overtaking stocks?
Here are three reasons why stocks are being overtaken by NFTs and crypto.
1. Better yields
Both NFTs and cryptocurrency have been proven to deliver better yields all the time. From the time it entered the market, the average returns that these investments have offered are way above the average, and this has caused these investments to overtake stocks, bonds, and more. For many years, stocks have been a staple in the portfolios of most investors, but this seems to be changing in 2022. Most of the liberal investors out there are now more willing to invest in digital assets than was the case some years ago.
2. NFT is being perceived as future-proof
With the introduction of NFT games and other interesting money-generating products, NFT has become quite attractive. The games are what the future generations want for their investment. These games are developed on the blockchain network, and investors are favoring investments that are inclined toward this unique network.
3. High inflation levels
With more inflation being recorded in the general investment environment, people are accumulating digital coins to protect themselves from the ever-rising consumer prices. In the event that inflation continues to rise, there is a likelihood that cryptocurrency and NFT investments will surge even more.