The case for NFTs
The NFT market has what it takes to be massive. Whether it’s a piece of artwork, a tweet, or a baseball card almost anything can be digitized. It is estimated by JPMorgan Chase that these digital art items produce $2 billion in sales each month — which is five times the amount that they were bringing in at the beginning of 2021.
The top bank stated, “by making marketplaces for illiquid assets like music, digital art, gaming, collectibles, and other assets, the NFT world is set to continue growing over the years to come because it contributes to solving the problem of injecting liquidity into illiquid assets like collectibles.” Based on estimates from Cointelegraph, NFT sales may hit $17.7 billion in 2021 which would be a record.
NFTs will become more liquid as they become more mainstream, this will make it easier to buy and sell them. There are lots of marketplaces out there. OpenSea is among the most popular ones to sell and buy digital items. Your own NFTs can be created to sell on these platforms.
There are not many NFT stocks, however the Defiance Digital Revolution is a new exchange-traded fund. It was launched this month and focuses on crypto, blockchain, and NFTs.
The case for cannabis
Cannabis stocks are much like NFTs with their volatile swings in value. They are not an investment that is risk-free. Marijuana is still illegal in the United States at the federal level, and that makes it hard for businesses to get money to help them grow. Multi-state operators can not trade on the big exchanges and having bank services is a challenge also. Even with these obstacles, the sector has grown. The cannabis industry is more evolved than the NFT market, because of this there are more ways for investors to gain exposure to it.
Investors can purchase shares of Trulieve Cannabis, a top cannabis producer, which is on track to make more than $1 billion in revenue next year and is also profitable. There is more room for cannabis producers to grow as more states and countries make marijuana legal. It is projected that by 2026, the global cannabis market may be worth more than $90 billion, while growing at a compound yearly rate of 28% until then.
If investing in a producer is too risky for you, you can always purchase shares of a dividend-producing real estate investment trust like Innovative Industrial Properties, which rents out the places to cannabis businesses. There are also pick-and-shovel investments like Grow Generation and Agrify that provide cannabis producers with the solutions and tools to grow their crops.
Which one is better?
NFTs are very speculative and it can be hard to decide how much a digital item is worth. Physical paintings are hard in themselves to value, let alone digital items. Cannabis is a more stable investment because you can invest in businesses that are generating profits, and it is easier to see how the business will increase its value. With NFTs, there’s greater risk and uncertainty involved. You may get lucky and make a profit selling and buying a NFT, but the safer choice for 2022 is without a doubt the cannabis sector.
Author: Scott Dowdy