Christian Ng: NFT and Bitcoin (BTC) share common features
The head of blockchain-focused investment firm GBV Capital in Hong Kong, Christian Ng, spoke in an interview about his views on investing in non-exchangeable tokens (NFT). He believes NFT and Bitcoin have a lot in common.
What links the first cryptocurrency and NFT
Christian Ng shared his views on digital art, NFT investments and Bitcoin in an interview with The Millennial Source. He stated that the similarity between Bitcoin and NFT is the creation of a community of people sharing similar views. Ng called BTC the first “NFT” because the coins can be considered unique compared to regular money. People who own even a small amount of BTC feel part of the community.
NFT is a purchase of art, not an investment
According to the expert, there are three main factors fuelling the development of the NFT industry. First, there’s traditional art. Artists are beginning to actively explore the possibility of digitalising their work. The widespread demand for video games and the development of the meta-universe concept also play an important role in the spread of NFT, Ng believes.
However, Ng warns users to be prepared for a possible loss of funds. He therefore recommends that an investment in NFT should be regarded as an ordinary purchase of a work of art. Even in the worst-case scenario, users will still have an artwork in digital form. Ng also talked about his own experience of investing in NFT.
“I bought two NFTs for like 200 bucks for my birthday in April, and then people thought I was crazy. Like, ‘Why would you spend like $400 on a JPEG?’. And then slowly when I was part of this Discord and participating in all these conversations, [and] the community is now becoming larger.” Ng noted that he purchased NFTs for fun, he enjoyed those artworks and watched the development of the community from its humble origins. Nonetheless, the GBV Capital executive’s investment paid off when he sold one of the two NFTs for $100,000 (~£75,007).
He stressed that any NFT issuer is interested in the success of its token, and the team behind its development could be really passionate about a particular idea. That said, there’s no telling what might happen in the future. It’s likely that some new token could emerge with multiple potential applications, Ng added.
As you may recall, yesterday there was another boom in the world of NFT. A piece of virtual land in the NFT game Axie Infinity sold for a record 550 ETH. Representatives of the project stressed that it was the largest acquisition of its kind in history.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.