Would you buy an NFT? 3 investors share their thoughts
Non-fungible tokens (NFTs) have taken the investment world by storm and some long-term investors are buying. In this segment of Backstage Pass, registered on December 3Fool contributors, Toby Bordelon, Jose Najarro and Rachel Warren discuss their take on the NFT craze and invest in this speculative space.
Toby Bordelon: A few things about crypto. were today CNBC reported Charlie Munger, vice president Berkshire Hathaway, which I think his 97. He said he wished cryptocurrencies had never been invented. I think he went even further and said he was glad China banned them. Strong words coming from him.
In related news, the NFT market is doing a lot there. Things are getting hot. A lot of money is changing hands. These however, especially for some digital arts, digital collectibles, NFT. But many experts remain skeptical of the long-term value of NFTs. Let’s just think broadly.
Let’s address them. Let’s address Charlie Munger’s concerns. Let’s tackle the NFTs, the skepticism there. What do you think? What’s your take on crypto if you just want to give me a quick thought on it? Where do you see it going in a few years? Would you buy NFT? Would you buy NFT, and if so, which NFT would you like to buy? Let’s start with you, Rachel.
Rachel Warren: Yeah, I thought it was interesting. I think his assessment was a bit too dramatic, but I understand where he’s coming from. I have a fair amount of crypto skepticism. I have had it for a long time. I don’t think all cryptos are created equal. I think it can certainly be part of a larger long term investment portfolio.
Personally, I haven’t invested in crypto yet, in part because I think my understanding of it as a whole is still not where I would like it to be in order to really make a solid investment in it. long term. I think it is also important. Another thing for me that I think about sometimes, I don’t know if it’s always discussed so much. There is an interesting environmental impact to consider with some cryptos, for example, Bitcoin for a.
There was an interesting article about it in To discover Magazine. But a lot of Bitcoin mining facilities run off coal. One study found that in 2018, every dollar of Bitcoin mined cost an average of $ 0.49 to $ 0.37 in climate damage in the United States and China, which is a big part of why China has also turned down. fierce on cryptography.
I don’t think that’s necessarily a reason not to invest in it, but I think it’s something to be aware of. Honestly, out of that space, what really fascinates me is NFTs. I do not currently have one. But for me all this craze for NFT and in particular the movement within the digital art asset buying space, I find it really fascinating and we see a lot of legitimacy being lent to this area by a big house. auction.
Back in October, Coinbase, but Sotheby’s which has been around since 1744, they both said they were going to launch NFT markets. It absolutely amazed me. There was a Christie’s sale recently, according to CNBC, where digital artwork was priced at $ 69 million. [laughs]. There are people who are banking through the sale of these digital assets. I think it’s definitely the draw. This is probably, I would say, the exception to the rule when it comes to trade in these digital works of art. I think it’s a really interesting space.
A larger thesis, not a space in which I am investing at the moment. I’m super fascinated with NFTs and where it could go, especially digital art. I think this is something that we are seeing, as I mentioned, these big auction houses lend a lot more legitimacy. I don’t think it’s going anywhere. This is something that I intend to monitor for sure over the next several years. I think this is something that investors are going to have to face for a long time. I don’t think it’s just going to fade.
Toby Bordelon: José, and you?
José Najarro: I agree with Rachel especially early in crypto. I wouldn’t consider myself a bear or a bull in the crypto market. I believe he is here to stay a long time. I think what Charlie mentioned was a bit intense. He wished they had never been created. I think every new technology starts with a lot of skepticism.
Like I said, I am neither a bear nor a bull. But I think the tools that are being used for this right now might not be the best use, but maybe in the future there could be a better use, and it couldn’t have been fact that because cryptocurrencies were created. I think it’s still too early to determine if, hey, I wish that had never been done.
Now, let’s get into the NFT market. I do it personally. I have a few NFTs that I invest in. But when I look at NFTs it’s something, it’s a very small percentage of my portfolio. Let’s say my stock portfolio, it would probably be 2-3% of my portfolio. Very very small. I find the NFT market very interesting.
Not for digital art. These NFTs are coming out with, I mean a new project is coming out every day. For me, the NFT market is made up of small, micro-cap companies. I mean, all of those 100 micro-cap companies, maybe just one of them could be successful and just fine. What I like is that most of these projects are usually supported by some form of team. I don’t know if it’s just the investor in me, I like to track down who these team members are? Who is the leader behind this project?
What have they done in the past? Why are they working on this project? What is the roadmap in which they integrate this type of NFT? I think that’s what really drives me to learn more about the market.
Just good, “Let’s see if I can take my stock analysis moves in another new market and see if it works the same way looking at leadership how management is handling the project they’re working on.” What is the future aspect that this project is trying to achieve? It’s a very small market for me. I own a few.
But again it’s not something I would believe for me it’s more I’m going to say, the casino money to an extent that it is, I know it can go to zero very, very quickly. But for me, the best way to learn something is usually to gain that first-hand experience. This is my method of learning and for that, I entered this market.
Toby Bordelon: I mean, you learn by buying. There’s nothing wrong with taking a little out of your wallet and being, I don’t care a bit about that. I am going to have fun. This is one of the reasons I bought Galactic Virgo. It actually looks good. It can go nowhere [laughs] but whatever. It’s cool to own.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.