Everything has its advantages, at the same time limitations. For example, many crypto minors have always complained about consuming a lot of energy when mining bitcoin. This is why other competitors’ crypto have worked to reduce that effect on the environment. Now, it’s time to complain about the new crypto branch, the NFT.
In 2021, many young people made millions through their NFT creative designs. Platforms like the OpenSea received great traffic as investors yearned to buy and win their NFTs. Many developers have created an account to showcase their talents in the business.
The environment experts did their research to discover that NFT negatively affects climate change. The NFTs release a lot of carbon gas which destroys the ozone layer. There is a need to plant more trees to consume the released gas. According to science, trees consume almost 60klogams of carbon(II) oxide daily. Concerning the NFT, 1.37 trees can handle a single non-fungible token. Digital collectibles are still in demand.
In the third quarter last year, there were almost 4.7 million NFTs in different sites. According to NFT research Club, 6.85 million trees can also curb the CO2 released by over 5 million non-fungible tokens.
Non-fungible tokens are digital assets that are built on top of blockchain technology. Some cryptocurrency like Ethereum holds almost half the number of NFTs globally. Ether provides a simple platform for developers to create their designs and save the work for future use. In 2021, the transactions involved in NFT got to above $41 billion, while crypto, in general, attained the trillion-dollar mark.
Crypto enthusiasts have said that the best way to unlock the metaverse is by using NFTs. The web3 technology is trending as more developers argue if it will overtake the web2. On the other hand, Naysayers have said that the power for minting and trading those digital collectibles will chase away potential investors.
The Non-Fungible Tokens have gained popularity as celebrities, athletes, musicians, and even secret government officials purchase those designs. Last year, Eminem came out to purchase a Bored Ape Yacht Club NFT worth $452,000 from Shady_Holdings. Since celebrities have great influence, many people went ahead to buy more collectibles. You will get many profiles with NFT apes if you go through Twitter. Does this mean NFT is the future? Absolutely yes, a report by CNBC.
Earlier this year, SnoopDog declared that he was ready to work with a Clubhouse, which was launched in 2020. The application has been integrated with several NFT platforms. He bought the app from Death Row Records. The American rapper wants to transform it to be a musical NFT label.
Although the NFT market has slowed down during the first quarter in 2022, experts have predicted a positive revenue in the coming quarters. If the NFT grows, it means Ethereum will have more power. But this doesn’t mean overtaking bitcoin. On the contrary, many people will stick to the popular crypto over the rest. That’s why investors have advised their clients to invest in crypto despite the volatility behavior.