Real Talk: Clancey Braxton Yohman Discusses The Pros And Cons Of NFTs

NFTs are one of the most exciting assets in the modern investment world. The technology is pretty controversial. Those who invest in and believe in the technology really believe in it.

So much so that many of them are not realistic and will not give straight answers about the technology. They will give fluff answers or be dishonest with you and themselves if you ask prying questions that go against their narrative.

Thankfully, not every NFT investor acts this way. People like Clancey Braxton Yohman invest in NFTs but do not do so blindly. They understand the pros and cons of the technology and are more than happy to be honest with potential investors.

Clancey Braxton Yohman is an industry leader and a pioneer of NFT investing, research, and news, and he’s agreed to share some pros and cons of each. Let’s take a look.

Con: Expensive to Mint and Trade

The barrier to entry for NFTs is one of the major cons. It takes a lot of computation to mint an NFT on the blockchain, and with that computation cost comes electricity costs.

This cost makes it very hard to put NFTs out there and actually use the technology. Some marketplaces and developers have created workarounds, but Clancey Braxton Yohman believes that we will have to find some way to bring costs down to see use by the average person.

Pro: Extremely Secure

NFTs are being used for things like smart contracts, sensitive document storage, and the like because the technology is just not hackable. Clancey Braxton Yohman says if he had to store all of his sensitive information in the same place, he would choose the blockchain every single time.

Con: Volatile

Clancey Braxton Yohman pointed out that one of the major concerns for NFT investors is that the assets are highly volatile and nearly unpredictable. It takes a lot more due diligence to make good NFT investments than to make stock or Crypto investments.

Pro: Fractionalize Ownership

It can be difficult to fractionalize the ownership when it comes to things like real estate; especially once more parties start to get involved. This is amplified with things like jewelry, fine wine, and things of that nature.

With NFTs, however, this is extremely easy and built into the technology. This gives a huge advantage to digital minted assets over traditional assets and is one of the reasons why brands are utilizing NFTs.

Con: Do not Generate Income

Many investors invest in stocks and ETFs because they can guarantee an income from their investments. These funds provide the investor with consistent returns in the form of interest and dividends.

This can even be achieved in real estate with things like rent. As of now, there are not many ways to generate this income with NFTs, but Clancey Braxton Yohman believes there may be a future for digital renting of assets with NFTs that will bring investors this benefit.

Pro: Extremely Diverse

Finally, one of the biggest pros of NFTs is that they can take the form of just about anything. Art, video, music, tickets, shoes, you name it, can be an NFT.

NFTs can become big, and this diversity is what gets investors like Clancey Braxton Yohman so excited about the technology. They know the potential is limitless, and they can’t wait to see how many industries it will penetrate.