A LITTLE-KNOWN PATHWAY TO PASSIVE INCOME: NFTS
What are NFTs?
NFTs or Non-Fungible Tokens are digital assets that represent ownership of a unique item or piece of content, such as art, music, videos, and more. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos 1. Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. The market for NFTs was worth a staggering $41 billion in 2021 alone, an amount that is approaching the total value of the entire global fine art market.
Why should black people invest in NFTs?
NFTs are a new and exciting investment opportunity that can help diversify your portfolio. They are also a way to support black artists and creators who have historically been underrepresented in the art world. NFTs give black artists a platform for their work to be recognized and valued, and they allow collectors to own a piece of history while supporting the artists who created it.
In addition, NFTs can be a way to build wealth and gain financial independence from other financial institutions. Cryptocurrency and NFTs may be attracting more minority investors who have historically had barriers to traditional financial investment options like the stock market and real estate. According to a survey by Black Enterprise Magazine, 23% of black people invest in crypto assets, which is twice as many as whites.
It’s important to note that NFTs are still a relatively new and untested investment opportunity. As with any investment, there are risks involved, and it’s important to do your research and invest wisely.
(NFTs pictured are from the Rich Duck Club Collection on the XRP blockchain)
