The odds of you not hearing about NFTs over the past year are pretty slim. But, even though the name keeps popping up everywhere, few people understand what’s been going on. With so many trusted cryptocurrencies, like Bitcoin and Ethereum, available with a few clicks, many people are hesitant about NFTs. But we ought to see these tokens as digital versions of collectibles, just as we see cryptos as digital forms of currency.
So, what are NFTs exactly? And why are they so popular? If you’re interested in finding out more, we’ve got you covered. Just keep reading, and you’ll get all of your answers in a few minutes.
What Are NFTs?
NFTs are non-fungible tokens. If that doesn’t exactly clear things up, we get it. A non-fungible item is something that cannot be substituted with another item due to its uniqueness. Using the example of Bitcoin, if you own one, you can trade for another with the same purpose and value. So, a Bitcoin is fungible.
However, NFTs are not, as they represent one-of-a-kind cards that cannot be traded. If you’re wondering what can be non-fungible, the answer is anything. From a worthy house painting to a classic baseball card. Why is that? Well, even if you paint that painting again or take a photo of the baseball card, it wouldn’t have the same value as the original. And, ultimately, it wouldn’t be the same.
How Do They Work?
In the digital world, NFTs can be purchased and sold. If you want to learn more, we recommend going through a guide to buying NFTs — it could prove extremely valuable in the long run.
NFTs are a part of the Ethereum network and come from the Ethereum coin. Every available NFT has its unique signature in the digital world. In most cases, NFTs are purchased using Ethers or dollars. All transaction records are kept in a specialized blockchain.
Any digital objects online can be turned into NFTs through a unique process. So, things like images, music, videos, texts, and tweets can become valuable NFTs. Artists can also create unique digital ownership statements and certificates that help them digitally sell their art.
Behind NFTs’ Popularity
Naturally, there are a lot of questions regarding NFTs. And a lot of them can go unanswered due to how new and one-of-a-kind this topic is. However, we’ll try to explain why NFTs are so popular and what makes them so sought-after.
What Is the Point of NFTs?
It depends on whether you’re the seller or the buyer. Sellers or artists have a platform where they can show off their work, something that’s not typically available in the competitive art world. Since an artist receives a percentage from every sale, their work can become popular and increase in price over time.
If you’re a buyer, you get to support your favorite artist and receive online rights to the image. On the other hand, if you’re a collector, you might want to hold onto the image and hope its value increases over time.
What Should I Pick Up on the NFT Market?
That depends on your preferences as it can be anything digital. That includes music, drawings, videos, and such. At the moment, digital artists are all the rage. Some big brands and celebrities have also launched their NFTs, like Marvel and Wayne Gretzky.
Future of NFTs
The future of NFTs may be difficult to predict, but they could represent an innovative approach to ownership. This could even include properties and other assets. Some NFT enthusiasts say that all kinds of properties could become digitally tokenized in the future.
Ultimately, it’s up to the people. If you’re interested in purchasing NFTs, we suggest doing your research first.