NFTs vs Bitcoin? Which one will 2022 treat better?

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NFTs vs Bitcoin? Which one will 2022 treat better?

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  • BTC is regarded as the digital gold and is one of the most important inventions of the 21st century, with almost 80 million users.
  • Both Bitcoin and NFTs are volatile and new investment forms, but you must carefully consider which is best for you.
  • NFTs are a hot trend, and there has been a recent surge in interest in NFTs, which is expected to double by 2022.

Unless you have been living under a rock, you already know that cryptocurrencies have managed to captivate the public imagination and that the world is on its way to evolve towards the future of the Internet, that is, the metaverse.

Here, we will simplify the concepts of Bitcoin (the world's largest crypto) and NFTs, as well as offer a glimpse into their 2022 outlook.

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What is Bitcoin?

Bitcoin is a digital currency which was developed in January 2009 in response to the global financial crisis of 2008 and the collapse of the housing markets in the United States and other nations. BTC is regarded as the digital gold and is one of the most important inventions of the 21st century, with almost 80 million users.

Since its inception in 2009, Bitcoin's success has spurred the establishment of other cryptos such as Litecoin, Ethereum, Cardano, etc.

Moreover, Bitcoin is fungible, and its prices are widely quoted. There is a large market in which you can sell or purchase, and you can theoretically arbitrage the difference in pricing between markets. Selling low and purchasing high in BTC can result in a loss, but you're less likely to be scammed if you buy Bitcoin on a large exchange.

What are NFTs?

NFT is an abbreviation for "non-fungible token," which means that each one is unique and cannot be exchanged for cash.

An NFT could, for example, represent:

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NFTs are, in a nutshell, digital versions of a physical collector's items. So, the buyer receives a digital file rather than a real oil painting to display on the wall.

Although present since 2014, NFTs have exploded in popularity only recently. There has been a recent surge in interest in NFTs.  they are becoming a popular means of selling and buying digital artwork, which is expected to double by 2022. Since November 2017, a total of US$174 million had been spent on NFTs.

The question now is whether or not people should continue to invest in NFTs. NFTs aren't as revolutionary as Bitcoin, but they're a step in the right direction.

The prices of NFTs are far more speculative. You might not be able to find a buyer always for your artwork or NFT if you have paid a lot of money for it.

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Well, now that we know what Bitcoin and NFTs are all about, let us look at their features and how 2022 might treat them.

What are the key features of Bitcoin?

  • In Bitcoin exchanges, people can sell and purchase Bitcoin with various currencies.
  • BTC promises reduced transaction fees than other online payment methods. 
  • It is governed by a decentralised authority rather than a country's central bank, in contrast to government-issued currencies.
  • Balances are stored on a public ledger that is open to the public.

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What does 2022 look like for Bitcoin?

  • Despite the volatility, many analysts believe Bitcoin may hit the US$100,000 milestone before the end of 2022. Bitcoin has progressed from an unknown risky investment to a known risky investment, given the price volatility it has recently displayed.

Hence, it has established itself as a token which may provide quick gains and quick losses too. Given the high-low pattern of its price trajectory, investors may take advantage of the bearish market and buy bitcoins at lower prices, only to pull the market to new highs. 

  • Bitcoin ETFs are gaining acceptance across the world with investors valuing it as a safer tool to invest in digital currencies.

What are the key features of NFTs?

  • NFTs are unique digital assets that represent physical objects.
  • Unlike cryptocurrencies, which are fungible tokens, NFTs are not interchangeable. Hence, NFTs cannot be exchanged in the same way as cryptos.
  • A digital ledger governs NFTs, and all transactions are executed online.
  • At any given time, an NFT can only have one owner. It's easy to verify ownership and transfer tokens between owners because NFTs offer unique data. They can also be used to hold specific information by the developer or owner. For example, artists can sign their work by inserting their signature into the metadata of an NFT.

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2022 prospect: What does the year have in store for NFTs?

  • We're seeing a rise in the use of NFTs in marketing and branding, with many mainstream organisations using them to form deeper, experiential connections with their customers. They are also being utilised to open up new channels for customer engagement and revenue generation.
  • According to almost all industry experts, gaming-related NFTs, or metaverses, are expected to trend more than any other thing this year.
  • While the bulk of NFT transactions has been retail purchases under US$10,000, according to Chainalysis, there is still a broad spectrum of wealthy collectors who purchase NFTs in the range of US$10,000-US$100,000, as well as institutional purchases over $100,000. With this volume of NFTs transactions, it is apparent that NFTs will have a bright future in 2022. 
  • Nike's acquisition of RTFKT studios, Adidas' collaboration with the BAYC, and Pepsi's NFT to corporate experimentation have gradually matured into conviction, indicating that NFTs are not just a fad.
  • Many well-known persons have invested in NFT projects, indicating that NFTs have the potential to reach out to a broad community.

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Bottom Line

Both Bitcoin and NFTs are volatile, new forms of investment forms, but you must carefully take your pick. Remember, whether it's crypto or the meta world, only invest what you can afford to lose.

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