Bitcoin is experiencing a resurgence in value due to interest in spot bitcoin ETFs, while NFT sales are at a record low driven by market saturation and decreased demand. The fixed supply of Bitcoin contrasts sharply with the overproduction of NFTs, resulting in declining interest and profitability in the NFT market. Analysts suggest that for collectibles like NFTs to regain value, they must become rare, a challenge given their easy production.

1. By: www.ProfitableInvestingTips.com

2. With interest in spot Bitcoin ETFs driving its
price, Bitcoin is at its highest in a year and a
half. Bitcoin is leading the way out of crypto
winter. Meanwhile, interest in non-fungible
tokens is falling, with no bottom in sight.

3. What are the investment possibilities of Bitcoin
versus NFTs today? When looking at these two
investment possibilities, one has a fixed
maximum that will ever be produced. The
other suffers from production of more than the
market is interested in.

4. NFT Sales Hit Lowest On Record

5. Crypto News reports that sales of Polygon and
Ethereum NFTs on the OpenSea marketplace
are at their lowest for the year as of October
2023. Part of the problem has been the same set
of things that affected crypto in general, higher
interest rates and the descent of regulators on
the crypto world.

6. Another is the overproduction of NFTs in a weak
market. The plunge in NFT interest has been
dramatic. Sales volume of NFTs with a base in
Ether were at $659 million in January of 2023,
$74 million in September, and half of that in
October. Polygon NFTs fell from a trading
volume of $109.12 million in February to $4.5
million in September and $2.5 million in
October.

8. Why Has Interest In NFTs Fallen So Badly?

9. Opinions being offered on this subject include
high interest rates and regulatory pressures.
We suggest that it is more a matter of market
saturation and flagging interest. NFTs are
collectables. They fall into the same category as
rare coins, stamps, antiques, and works of art.
A Picasso or Rembrandt painting is expensive
because it is one of a kind. A print of a Picasso
is not rare and therefore not expensive.

10. A rare stamp is expensive because it is unique
and only a few exist. If you bring your stamp
collection to a store that sells rare stamps they
will typically pay for your collection according
to weight because there are no truly rare
stamps. That, in our opinion, is the problem as
folks churn out more and more NFTs. Yes,
your specific NFT is unique, but all of those
funny apes look pretty much the same, so they
really are not all that unique.

11. There Will Never Be More Than 21 Million
Bitcoin

12. The maximum number of Bitcoin, which is
programmed into the system, is 21 million and
more than 19 million have already been mined.
This fact supports the argument that Bitcoin
will, over the years, survive and prosper while
currencies like the dollar, euro, British pound
dwindle. It is also a good argument for how
Bitcoin has the potential to grow in value
versus the dollar while the vast majority of
non-fungible tokens dwindle due to market
saturation.

13. As Profits Fall So Does Interest in NFTs

14. The most accurate reason for why interest in
NFTs is falling is because it is falling. This may
sound like circular reasoning but that is how
markets work. People buy and sell NFTs to
make money. When prices are going up, that
makes the task of gaining profits from NFTs
easier. Thus, more folks get excited about NFTs
and jump into the fray. Then NFT values fall.

15. Folks sell to take profits before that prices fall too
far. Then the rest hold on in hopes that the
market will recover, but it doesn’t. NFT
investors look for reasons like higher interest
rates and regulatory pressure on crypto in
general. But none of that changes the fact that
interest in NFTs has fallen and that folks tend
to follow the market in making their decisions.
Right now the predominant choice is to get out
and stay out of NFTs.

16. When Do Collectable Prices Come Back?

17. For collectables to become valuable they have to
become rare. Coins go into circulation and
become worn. The ones that were put aside
remain in pristine condition and become
valuable. Likewise, when a famous painter dies
there are no more of his or her works and the
prices go up.

18. A problem in this regard with NFTs is that they
will not wear out and, because they are
relatively easy to create, they will still be
produced. This bodes poorly for NFT prices
going forward and the value of NFTs in the
Bitcoin versus NFT competition.

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