Meet the new rising star in the crypto world: NFT!
Cryptocurrencies and tokens have enabled plenty of new possibilities and opportunities, especially in the investment world. Because of them, there are a lot of new ways to invest and possibly make some profit.
Even though the complete crypto world has allowed fantastic creations, not all are worthy of your time. On the other hand, there are a lot of opportunities that are truly rising stars in the industry. The latest of these, which is becoming more and more famous, is NFT. They started as a trend, but now they have managed to root their spot in the world of crypto. So what even are NFTs and are they worthy of your time and energy? Let’s find out!
NFT is an abbreviation of the words non-fungible token. These words are thrown around a lot currently, but not everyone even knows what the term exactly means. NFT is a sort of data that is stored on a blockchain, just like other cryptocurrencies or tokens. But there is one very specific aspect, which makes NFTs differ from other cryptocurrencies and tokens.
Unlike cryptocurrencies like Bitcoin or other tokens such as Ethereum’s ETH, NFTs are not interchangeable. This is exactly what the word non-fungible means. As an example from the non-crypto world, you can think of dollars. Normal fiat currencies are fungible. If you and your friend both have one dollar, you can exchange them with each other. Both of you will have the same value of dollars. If someone famous will sign one of the dollars, its value will suddenly rise, making it a different value than the dollar your friends have. This means that now you have a non-fungible dollar. If this still isn’t clear to you, you can watch a video series on CNN about the subject.
NFTs were first introduced in 2015, by Ethereum. Six years later, in 2021 they have become very popular. This is mainly due to different digital artists, who started to create NFTs of their art. NFTs let artists sell their digital art for profit to anyone who is interested in owning a piece. You can find anything from small individual pieces like the ones behind this link https://buynft.com/collections/winter-bears/ to big pieces like Everydays: the First 50000 days by Beeple.
Digital art is not the only popular type of NFTs. Some game developers have created NFTs that can be used as in-game assets. Also, the film and music industries have started to use NFTs to their advantage already in 2020. Some producing companies began to create marketing material, such as movie posters or short clips of upcoming movies.
What can you do with NFTs?
Just like any other cryptocurrency or token, NFTs can be used for trading purposes. Otherwise than that, they are mainly collectibles. NFTs can’t be used for accessing the different features of a blockchain, like many of the currencies and other tokens can.
As we mentioned, NFTs are mainly collectibles and can be used for investing purposes. It is difficult to say whether NFTs will go up in value since this depends on the individual work. So in other words, whether you should or shouldn’t buy NFTs depends completely on you. However, this could be said about any other art or music.