Those who want something unique have often found that something in the world of fashion. Today another way to possess something unique and something with the potential to increase in value is to possess an NFT, a non-fungible token. Today NFTs and fashion seem to be on parallel courses according to Parle. The fashion world is’ always evolving to create and keep up with fashion. The world of NFTs also produces items that evolve over time.
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What Is an NFT?
NFT stands for non-fungible token. Non-fungible means it is unique and irreplaceable. In the world of cryptocurrencies a Bitcoin is a Bitcoin is a Bitcoin. But, in the world of NFTs a unique digital work of art is one of a kind. It can be copied, like the Mona Lisa or a Rembrandt painting, but the original is unique. NFTs are part of a blockchain, the Ethereum blockchain along with the Ether token and, as time passes, will be part of other blockchains. All NFTs are digital and can include music, images, or even William Shatner’s dental x-rays (which Mr. Shatner has, indeed, sold to fans). The point of having an NFT is to possess something unique that you can enjoy and something that will increase in value over time, like a Picasso painting purchased for a few Francs more than a century ago and worth a million dollars today.
How Are Fashion and NFTs Similar?
In the world of fashion each piece of clothing and each ensemble is unique. This makes them like NFTs. Today high end fashion designers are creating new designs both as tangible items and as NFTs. An example is Dolce & Gabbana whose recent release of nine NFT and physical fashion combinations using the Polygon platform for the NFTs. One item that went for a million dollars was a tuxedo made of Murano glass and Swarovski crystals. Designers are creating digital fashion collections, doing virtual fashion shows, and even creating NFTs of cosmetic “skins” for video game avatars. Nike has gone so far as to buy an NFT studio (RTFKT-artifact) for digital collections of its products. The least expensive item is worth more than the most expensive physical merchandise they sell!
Are Fashion NFT Collectibles Profitable?
Fashion NFTs are collectibles as are all NFTs. NFTs can be copied so anyone can enjoy music or a digital image. This is the same as hanging a copy of a Picasso painting on your wall instead of paying millions of dollars for an original. However, while your Picasso print will not increase in value over time it is very likely that your Picasso original will. On the other hand, not all promising young artists end up being famous with their works of art being eventually worth millions of dollars. The moral of this story is that when you invest in an NFT as an investment you are getting into the world of collectibles where prices go up and down with the times. There are collectors with the money and experience to pick the right items and the patience to wait for items to appreciate in value. These same collectors often see the value of their painting, rare coin, or whatever dip in value for years before going back up at times like when an artist dies, or it is an anniversary of their passing. Thus, despite the newness of NFTs being a place for collectibles in the digital realm, NFTs are collectibles like paintings, rare coins, and historical items. Those with the skill and patience to make money in this realm can be rewarded and those without those skills or patience end up losing substantial sums of money whether it is in the world of physical collectibles or the new world of fashion collectibles. Add to this concern the fact that blockchains can be hacked and NFTs stolen and resold by the hackers.
NFTs and Fashion – SlideShare Version