According to William Quigley, co-founder of stable coin Tether, non-fungible tokens which are digital certifications of authenticity, are important in retail. It can add value to not just artworks but also everyday importance such as retail items.
According to the cryptocurrency doyen William Quigley, the world's digital response to valuables, which has fetched millions of dollars at art auctions this year, may become a daily need within a decade.
“Within the next ten years, all consumer items that are not edible will have digital doubles. In a recent interview,” Quigley stated they will have NFTs.
There is considerable disagreement about the future of what some view as a vital component of futuristic financing and others see as yet another digital asset bubble caused by excess liquidity and inflation worries.
The recent dramatic price swings for cryptocurrencies, including Bitcoin, because of increasing environmental concerns and a broader crackdown spearheaded by China, have heightened the uncertainty.
This year has seen an increase in the popularity of NFTs, spurred by transactions such as the record-breaking $69.3 million sales of digital artist Beeple's "Every day the First 5,000 Days" and a video of a LeBron James slam.
Digital tokens are now being offered by everyone from art galleries to the International Olympic Committee, fashion businesses, and Twitter Inc.
CoinMarketCap, a cryptocurrency statistics source, reports that the market value of 57 projects in the “Collectibles & NFTs” category it tracked at the start of this year had risen to $16.7 billion as of Thursday, up from $4.67 billion on January 1.
However, a larger pool of 159 projects has been subsequently tracked at $19.2 billion as of Wednesday, which is down to 52% from a peak on April 16.
Even Vignesh Sundaresan, better known as MetaKovan, who purchased Beeple's record-breaking digital artwork, complained about NFTs because of their volatility.
In an April interview, he warned that anybody attempting to profit from NFTs is “taking a gigantic risk and is even crazy than investing in crypto.”
NFTs, or cryptocurrency-based tokens, have been volatile and have unnerved some investors. Proponents argue that they are playing the long game. According to Monica Long, Ripple's general manager, they are "offering additional revenue sources for artists and producers."