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According to a CryptoMonday analysis, the popularity of NFTs is surging, and many believe that they will play a significant role in the future of the digital economy. The site has concluded that 60% of digital consumers expect to buy, transfer or sell NFTs in the next three years. It drew its conclusions by studying data from a Digimentality 2022 survey targeting 3,000 respondents.
"NFTs are becoming increasingly popular as people look for alternatives to traditional asset classes," explained CryptoMonday CEO Jonathan Merry. He added, "They offer investors a way to diversify their portfolios and a new way to interact with content and experiences online."
Merry further affirmed that NFTs are more secure and easier to trade than traditional digital assets. He also held that their users could, through tokenization, convert them into other currencies, such as the US dollar, for payments.
65% of Crypto Enthusiasts Trust NFTs For Payments
NFTs have been gaining a lot of attention lately, which is reflected in the level of trust they attract as a medium of exchange. Quoting the Digimentality 2022 report, Merry asserts that NFTs are the second most trusted means of exchange. That's after 65% of respondents said they would trust NFTs for payments.
NFTs have several advantages over other forms of payment, such as credit cards or bank transfers. They are instantaneous, global, secure, and private than traditional payment methods.
The survey revealed that cash remains the most preferred medium of exchange. 85% of the respondents trust this means more than any other for their transactions. This figure indicates despite the growing acceptance of digital payments, physical notes and coins hold sway.
How Ready are We For a Cashless Society?
A cashless future has been on the horizon for some time now. With the rise of credit and debit cards and mobile payment apps, it has become easier to go without cash. Now, a new trend is emerging that could hasten the cashless future even further: digital assets of which NFTs are a part.
CryptoMonday's analysis of Digimentality's report shows that 25% of the respondents are still skeptical about the cashless future. That's not surprising, given that these payments are still in their infancy, and there are plenty of concerns about security and privacy.
Moreover, the survey found that 27% of would-be digital payment users deem government regulation a significant impediment to the attainment of that cashless future.
Interest in NFTs Fall to its Lowest Point Ever
It is also noteworthy to mention these recent findings. According to data from StockApps.com, interest in NFTs fell to its lowest point ever at 14 in the fourth week of August. This is a stark contrast to the interest in NFTs earlier this year, which reached its peak at 100 in the last week of January.
Speaking on the data, Edith Reads from StockApps said: "NFTs have been one of the most talked about topics in the investing world for the past few months. However, it seems that interest has waned significantly. The crypto meltdown could be one reason why interest has decreased, as many people lost money in the market crash. It's also possible that the novelty of NFTs has worn off. However, it's still early days for NFTs; thus, interest may pick up again in the future."
Are Nfts Still Significant?
The NFT market remains significant in the context of the geopolitical crisis despite the general decline in interest. For instance, to maintain its military effort, Ukraine is actively gathering money through its NFTs. It released its assortment of NFT for this reason. Besides, a charity platform called "Ukraine's Angels" and an NFT collection in support of Ukraine were previously introduced by the Ukrainian blockchain developer ElephantsLab.
NFTs’ Future
The current situation presents an opportunity for long-term investors. The market will most likely become more stable in the future as more industries adopt NFTs and people get a better understanding of how they work.
