Why are NFTs so popular?

NFTs are a hype a bubble, but who can for sure predict the future of NFTs? I will explain you in this article my views on NFTs and their future in the years to come. Why are NFTs so hot right now on Twitter ?

Is NFT reserved to the young hipster generation?

As of today the majority of the early adopters, and I think we are still in the NFT early adoption phase, are from Generation Z (people born between 1995 and 2010). As we move to older generations, the percentage of NFT aficionados decreases.

It is easily explainable by the fact that the younger generations are more connected and influence by the latest trends and that they spend more time online and interact much more on the social media. Also they are more subject to the tribal marketing and therefore have a stronger tendency to adhere to a clan or fan club (in a positive connotation).

This does not mean necessarily that they have the upper hand on NFTs trends right now, but they surely, by their interactions, take part and influence the future of NFTs as part of the crypto community.

They have nevertheless the smallest buying power as they usually still student of just arrived on the job market and therefore don’t have much budget to allocate to NFT procurement, unless parents subsidize them 🙂

So, the NFTs are not only for Gen Z.

Why are NFTs so Trendy?

Greed is in my opinion the number one factor to the hype behind NFT bubble. They are not based on Non Profit Organization philosophy, and I believe all NFT investors are motivated by greed (at least) in a positive way. The goal is clear: it is to make money with NFT.

You can of course argue that it is a wallet diversification. Nobody with common sense nowadays will be willing to put all his eggs in the same basket. If you already have shares, properties, gold, cryptos, any any of the classical investment verticals, and you have some left-over money to invest: you can and you should look into NFTs.

Early adopters of the Bitcoin, even buying small amount of coins, are rich if they are still holding them as of today. The principle of is here the same as for Bitcoin:

  • identify early NFT trends
  • buy-in cheaper NFT projects
  • keep until NFT market growth
  • resell NTF for a profit

It is up to each one to set a target and cash-in the profits when NTF target valuation is reached.

“Greed is good” as Gordon Gekko says in the 1987 film “Wall Street”. But you should have a NFT strategy and stick to it, in order to be successful.

The key to NFT long lasting success

NFT future is dependent on mass market late adopters.

Firstly, the younger generations who currently have no (or less) money are the most engaged but will become one day those who will have more money, whether through their regular income from traditional jobs or through their NFT profits.

Secondly, when today’s older generations will have been educated and convinced of the soundness of this kind of investment, we will see the mass investors joining the early majority or late majority.

A success key factor to convince these late adopters will be to achieve a link between the purely non tangible element of non tangible tokens to the real physical world as the World of Gems NFT Project is currently trying to demonstrate.

In any case I strongly suggest to all potential investors to carry on their due diligence on programs prior to proceeding to NFT purchase. The risk with NFTs also reside in the “pump and dump” strategy that some NFT project creator may have in mind.

Also never loose sight of the fact that any “profit” made in NFT or crypto currency remains virtual, for as long as you haven’t transferred it into more tangible asset.

  • NFT price can decrease is the demand slows down
  • Crypto currencies fluctuate a lot on a daily basis

So I see NFT as a highly volatile market and one should only invest the money he or she is ready to loose. Don’t go investing your child’s university savings! This is my view from a Generation X perspective.

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