Non-fungible tokens, NFTs, use approximately as much energy for their transactions as the average household would in a single week. The same is true for any transactions regarding cryptocurrencies. Now that BTS, the world’s most famous K-pop boy band, has stated that they are interested in creating and distributing NFTs for their fans-some people are ecstatic about this and others critical.
Let’s start with the naysayers. Many fans within Generation Z are still making up their minds about how they feel about NFTs. These fans know digital music and streaming more so than owning a physical copy of music. They’ve heard the stories from the past about fans lining up at stores to buy the latest Beatles album on vinyl, the latest Harry Potter book from J.K Rowling, and the tug of war between customers over a Tickle Me Elmo doll or Beanie Babies during the holiday season. These fans are now conflicted; they are experiencing a cognitive dichotomy-some are comfortable with innovations made with digital products and others want to stick with what they already know. This indecisiveness causes many within Generation Z to reject the idea of their favorite artists, musicians and filmmakers to embrace the emerging trend of NFTs. The deal-breaker for them is the fact that NFTs and cryptocurrency are not as energy efficient as they will be in the future.
Despite what skeptics may assert, it is safe to say that NFTs and cryptocurrencies are here to stay. They are very much a progressive innovation for today and the future. While there may be some pushback regarding the idea, many fans are supportive of their favorite artists developing NFTs. They are excited because they know that the market for NFTs will benefit them as consumers. In the case of BTS, their collector’s items are already selling for thousands of dollars on eBay and various marketplace apps. Those who agree with the idea know that a NFT version of these items will skyrocket in value on the blockchain.
When someone buys an NFT, they own the digital product. They can keep it as a collector’s item or trade and sell it in much the same way as the stock market works.
There is also the notion that the blockchain can not be trusted for security reasons. However, the blockchain is an extremely secure technology. It uses algorithms that incorporate multiple levels of encryption that supports information assurance and threat detection. NFT owners should know that encryption is a major aspect of their digital product being original on the blockchain ledger, and there is a relatively low risk of someone compromising it through cyberattacks.
As for K-pop, many of the genre’s music labels have already launched NFTs in 2022. BTS’ label, Hybe, has confirmed that they have plans to launch NFTs in the near future. They are collaborating with fintech company Dunamu to deliver their NFTs. They also expressed a commitment to continuously look for more energy efficient methods of producing their NFTs, which will assist the part of the fanbase that is concerned about environmental issues.