How many NFTs are there?
At the end of October 2021, there were nearly 7,000 different types of cryptocurrencies worldwide. Most NFTs are built on Ethereum, but many of these tokens utilize a different blockchain or were built on a proprietary NFT platform. As a result, there are innumerable individual NFTs representing works of art, videos, video game content, music, and more. As more artists and creators make use of NFTs to secure and monetize their work, this number will only increase over time.
Related investing topics
Investors who want some indirect exposure to NFTs anyway might consider adding a little Ether to their portfolio since most NFTs utilize the Ethereum network's blockchain. Ether is also a highly speculative investment, although it could increase in value if Ethereum network use rises over time. (It's important to note there is no cap on how many tokens of Ether can exist, but a recent change to the way transactions are validated from proof of work to proof of stake should decrease the supply of Ethereum over time.)
Even so, non-fungible tokens could be an important technological development. In a new digital era that blurs the lines between the physical and virtual worlds, a new way to track digital asset ownership and distribution online will be increasingly important. These blockchain-based tokens could also disrupt financial intermediaries and lower the cost of buying and selling big-ticket items such as autos and real estate. That doesn't necessarily mean you should invest in highly speculative NFTs, but, at the very least, their development is worth keeping an eye on.
About the Author
Nicholas Rossolillo has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, and Nike. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
