Reddit, which is known for its AMAs (Ask Me Anything) sessions, has been experimenting with connected NFT profile pictures lately. App researcher Nima Owji discovered this feature and shared a screenshot on Twitter:
— Nima Owji (@nima_owji) January 21, 2022
Reddit might offer NFT profile pictures
In 2021, cryptocurrency was the most discussed topic on Reddit, and we know that the site has been experimenting with digital currencies and transactions, so it’s sensible that it would consider adding NFT-related features as well.
However, despite the fact that there have been a lot of discussions about crypto in general, including NFTs, many Redditors are not optimistic and believe that the NFT market’s potential is overhyped.
When it comes to ownership rights and stuff, the NFT process has many flaws and issues but at the same time, all these companies and platforms leaning into the trend also makes us think that there’s potential in this sector.
How NFTs can be utilized in the future?
I’m almost certain that NFTs will play a fundamental role in the metaverse with a different function than today’s profile pictures, they could be utilized in exchanging digital goods.
Whatever the case, I’m not sure that your $300k Bored Ape will be as valuable in a few years. Many NFTs are already worthless, but they’re being utilized in ‘pump and dump’ frauds to entrap unsuspecting investors who believe they’re getting a good deal.
This happens in many sectors, but the crypto and NFT sector is especially vulnerable right now due to a lack of official regulation and the ability for traders to hide their identity.
To add to that, because NFTs are taxed as capital gains, the wealthy have even more incentive to utilize them as a hedge against future tax liabilities.
There will eventually be some form of regulation and accountability or hundreds of billions of dollars in tax revenues may be lost through crypto platforms and trading.
Over time, that could see the perceived benefits of crypto reduced, as it comes back into line with other monetary options, and NFTs are in the same boat, with enthusiasm for the space likely to die down as more buyers get burned, and more users call for increased security in their transactions.
But digital items will be highly traded in the future. It’s already popular in titles like Fortnite and Roblox, and younger users are becoming more used to spending money on in-app goods as we spend more time in expanded digital realms.
However, it is also reasonable for social networks to take advantage of the popularity of NFTs and provide users with the option to utilize them. Twitter has been offering new NFT-related features lately.