Non-fungible tokens as an area of entrepreneurial activity: Global perspective and potential directions of change

Abstract

Objective: The objective of the article is to identify the intensity of the interest in non-fungible tokens (NFTs) in a spatial and temporal frame of reference (regions of the world in the period January 2021 – May 2022) and the project changes based on Internet users’ queries for the keyword ‘NFT.’

Research Design & Methods: The basic research material under consideration consisted of spatial-time series generated from Google Trends. The data generated were subjected to relational and ratio analysis relying on clusters, correlation, and regression. The analytical tools used allowed for a cross-regional comparative analysis in a dynamic frame and a simplified prediction of the interest in NFTs on a global scale.

Findings: The biggest interest in NFTs is found in ‘the heart of today’s fastest-growing economy in the world’ consisting of Hong Kong, China, and Singapore. The dynamic growth of NFT collection and transactions in 2021 translated into the culmination of the interest in NFTs in January 2022. However, this interest was short-lived and significantly dropped in the next few months. Regardless of the region of the world, the trends of exchange in this field coincide. The NFT market will probably develop, but the dynamic growth that took place in 2021 will no longer occur.

Implications & Recommendations: The results of the study have practical implications for creators, investors, institutions and governments, as well as those interested in understanding the growing NFT branch as a part of the new global digital economy and the dynamically growing market of digital assets. In particular, it is necessary to take into account the currently discussed vision of introducing digital currencies and abandoning cash. From the theoretical perspective, the article complements the NFT analyses and the research instruments used.

Contribution & Value Added: The conducted study is pioneering in terms of the cognitive plane, i.e. analysis of the interest in NFTs on a global scale. The analytical process based on data generated from Google Trends, together with the research instruments used, is not reflected in the current scientific output. As assets that are objects of trade, NFTs fit into the new and rapidly evolving phenomenon. It is a cognitive area embedded in a very modest scientific output. The article enriches theoretical and cognitive research in the field of artificial intelligence.

Keywords

artificial intelligence, cryptocurrencies, entrepreneurship, Google Trends, NFT, non-fungible token

Author Biography

Dorota Jegorow

PhD, Assistant Professor at the John Paul II Catholic University of Lublin, Faculty of Social Sciences, Institute of Economics and Finance, Department of Econometrics and Statistics.

Lech Gruszecki

Habilitated doctor, Associate Professor at the John Paul II Catholic University of Lublin, Faculty of Social Sciences, Institute of Economics and Finance, Department of Econometrics and Statistics.

Grzegorz Jegorow

Master of Arts, president of Sun Solution Sp. z o.o. A company in the creative industry, focused on digital graphic designs.

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