10 Sep Are NFT’s The Next Crypto
NFT stands for “non-fungible token.”
It is data that is stored or accounted for in a digital ledger, and that data represents something specific. An NFT can represent a piece of art, a music album or other types of digital files.
A common misconception is that NFTs are a type of cryptocurrency. The similarities between crypto and NFTs are that they both have a stored digital record on a blockchain. The similarities end there. With NFTs, each token has a unique value and cannot be exchanged for another of equal value. With cryptocurrency, the value and transparency are more obvious; you can exchange one Bitcoin for another, for example. Like is like, and every token of equal value can be exchanged for another.
To simplify matters, NFTs are like physical collector’s items, but they’re digital. So instead of getting an actual oil painting to put up on your wall, you as the buyer get a digital file instead.
You will also get exclusive ownership rights. NFTs can only have one owner at a time. Their unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them. For example, artists can sign their artwork by including their signature in an NFT’s metadata.
What makes NFTs valuable?
According to an article by moneyweb.co.za – You can copy a digital file as many times as you want, including the art that’s included with an NFT.
But NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork).
To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.
Mark Winkelman, the artist known as Beeple, made $69 million at Christie’s when he sold a piece of digital art as an NFT. This makes him among the top three most valuable living artists, according to the auction house.
How to invest in NFTs?
The problem with NFTs is that they are not like tokens that you can just buy and sell, they are exceptionally diverse, have different driving values and are thinly traded. If you were new to the market you wouldn’t be able to simply jump in and start buying. Essentially what you would be doing is Investing in NFTs like you would in small businesses or even playing the lottery – the chances of success are low but the payout is high.