Let’s debunk NFTs today!
The somewhat cryptic abbreviation stands for Non Fungible Tokens. And it has become a modern megatrend in the crypto sphere of cryptocurrencies and digital arts.
Basically, NFTs are a link on a decentrally stored blockchain. They are unique and hence cannot be replaced or exchanged with something of the same value – are non-fungible. Bitcoin, for instance, is something that is fungible. You can trade it with any other Bitcoin.
NFTs are quite rare. You won’t find a bunch of these out there. Carl Runefelt is a global crypto leader who has been investing in cryptocurrency and NFTs for quite some time now. These investments have made him a multi-millionaire. He says, “NFTs are definitely speculative, but as you have seen, there is a lot of demand for them because they are scarce. There is always a new collection coming out all the time.”
These are pretty much the basics. Now let’s explore NFTs a little bit more.
What Can You Trade NFTs With?
There are certain factors behind the success of NFTs. For starters, it offers impregnable security – virtually tamperproof. This is accomplished due to underlying blockchain processes at its core.
You can link NFTs to any digital – even real objects! – and can trade it in digital marketplaces. In other words, you can call NFTs digital certificates of authenticity.
Wondering what can be linked to NFTs?
The short answer: Anything! You can link animated graphics, music compositions, digital arts, or even digital gadgets from games and can trade them on the internet.
A new collection of NFTs comes out from time to time, and investors rush to purchase them. These investors can then sell these NFTs for massive profits later on. Carl Runefelt says, “When you see the new NFT collection coming out, you have to make sure that it is of high quality because anyone with a computer can create an NFT collection. You find the right collection either where the artist is the famous one because it gives it value.”
Let’s see some of the popular forms of NFTs
You must have heard about the well-known Panini cards. Trading cards are the virtual equivalent of such cards. Since player cards are extremely popular, some companies offer player cards as NFTs. You can find these player cards on digital platforms as NFTs on sale.
Investors or NFT geeks who like to collect digital arts often prefer animated graphics. You’d be amazed to learn that a popular Nyan Cat NFT was sold for $600,000 dollars last year. Mindblowing, right?
What’s even more insane is that an NFT “Merge” graphic design was sold for 91 million dollars. It holds the record of the most expensive NFT sold to date.
On purchasing crypto punk NFT, Carl Runefelt said, “I really think that the crypto punk NFT is a good purchase which I bought for 1 million dollars. I am very certain that I can easily sell it for 1.5 million dollars if I put it out for sale and who knows in five years maybe it’s worth 20 million dollars.”
If you’ll ask one place where NFTs are most widespread, that is the space of virtual games! These tokens are clothing and pieces of equipment for the game characters in the game. These developments are going a step further; if you are a player, you can create NFTs yourself.
What Are the Benefits of Trading NFT?
NFTs are certificates of authenticity. This means that you cannot alter them – they are forgery-proof and cannot be copied.
If you are an investor who wants to buy NFTs, you can visit numerous digital platforms where NFTs are placed on sale. Artists from around the world put up their artwork on these platforms without even involving the intermediary authority.
Not even this, once a particular NFT is sold, the author continues to receive a certain percentage after every resell. This is actually done when NFT is structured via a so-called “smart contract.”
From a buyer’s perspective, once you buy an NFT, you can then resell it at a significant profit. A time is inevitable when cryptocurrency and NFTs will take over as digital currencies and assets. So get your hands on some while you still can!