Non-fungible tokens (NFTs) are here to stay. Once an abstract concept, NFTs now permeate music, art, and sports. The rise of crypto technology has made it possible to buy, breed, and virtual racehorses. Those horses cost real money, and some of them can reach quite impressive sums. Learn more about this new and promising trend in this article.
Understanding the Concept
NFT is a kind of digital asset stored on a blockchain, ensuring this asset is unique. Blockchain technology also guarantees proof of ownership for every NFT. Recently, The Burned Picasso project has turned one of the master’s works into an NFT. Afterwards, the original burned in a stunt.
The main point behind the project was that Picasso’s works could live forever unchanged as NFTs. The concept of the digital asset has migrated to other fields, and horse racing seems to be a hot trend. Through a platform called Zed, people can buy digital horses, breed them and train them.
Once you’ve worked your stallion to a competitive level, it’s time to try it out. Digital horses don’t get tired, so races are going around the clock, 24/7. It’s even gone so far as being open for gambling enthusiasts to wager on their favourite horse on platforms such as NetBet.
Digital horse racing is gaining traction and attracting jaw-dropping investments. Investors are willing to pay as much as €100,000 for breeding horses online. Never-stopping races have also created a gambling market for enthusiasts. Transactions are usually made in Ethereum, being Bitcoin a second option.
Breeding a champion is a complex and expensive process. Horses can be bred or bought according to their bloodlines. There are 4,000 original bloodlines and countless variations of them.
The first and most costly ‘generation’ of those lines counts 38,000 horses. People also buy and resell those horses in a secondary market. Top-race awards can reach six figures, while smaller ones will return only a few bucks.
Zed platform already has a few successful cases. Pinkman’s won over 12.5 ETH (32,600 USD), while Steph Curry’s brought home 11.8 ETH (30,800 USD). Horses like Pinkman and Steph Curry can breed three times a month and charge for it. A mare can breed only once in the same period.
Digital horse racing is incredibly famous among crypto enthusiasts. It’s an environment where cryptos are more than welcome, after all. Here are the main points for and against NFT horse racing.
Fans and investors defend that digital breeding and racing can potentially end animal suffering in this sport. Because no animal is involved, races can happen all day long. The breeding process is incredibly realistic, and users can be sure to own a truly unique item.
Cryptocurrencies aren’t generated for free. An NFT transaction in Ethereum can consume up to 8.7 megawatts/hour. Comparatively, it’s more than double an average British household consumption in one year. The pressure for a ‘green cryptocurrency’ is rising, but there’s no release date at sight.
NFT horses have been attracting fans and investors lately. Some companies and startups are investing in full ‘stables’, up for breeding and reselling. Still, there’s space for those after a hobby, esports betting, or simply watching the race.