Over the years, our generation has transformed into the digital era where industries have been revolutionised, leading to the conception of virtual currencies. More and more people have begun to appreciate the value of cryptocurrencies as a form of investment. In addition, non-fungible assets or NFT have recently gained attention from collectors and even celebrities. Some of these invaluable digital assets cost millions of dollars. In fact, Christie’s have auctioned and sold a single artwork for a tremendous amount of more than $69,000,000.
What are NFTs? Are they really worth investing in?
Just like cryptocurrencies, NFTs can also be categorised as digital assets. However, they do have fundamental differences.
Cryptocurrencies are known as fungible assets, meaning they can be interchanged to other good assets that have equal value. On the other hand, non-fungible tokens are considered unique assets which exist for a sole and specific owner at a given time.
Both NFTs and cryptocurrencies utilise blockchain technology. They can be traded, bought, sold and held through exchanges and trading platforms such as Bitcoin Era, if you want to start trading go to Bitcoin Era page. Since they are both intangible assets, the only way to store them is through digital wallets.
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NFTs has been around since 2014 and is mainly used in indicating ownership of a certain digital item. Basically, the term non-fungible refers to something that cannot be interchanged with another asset with the same value.
In the digital world, the artwork is one good example of something that is non-fungible due to its uniqueness and highly subjective value. NFTs, enter the scene as a way of authenticating artworks, whether in digital or physical form. The value of NFT can only be determined by the market willing to pay for it.
Why purchase and invest in NFT?
Like cryptocurrencies, NFTs are considered a risky investment. In the event that you are able to acquire an NFT asset, an artwork, for instance, the original owner, remains to the person who created it. As the second owner, you still wouldn’t be able to sell it at the original price.
On the other hand, NFTs are considered limited edition and one of a kind assets with identifying codes that are unique. This feature makes the digital asset scarce. The finite supply makes the assets more valuable with time.
With regards to accessibility, NFT digital arts can actually be viewed by anyone online for free. So what's the point of spending millions of dollars on something that can be viewed and downloaded online?
The answer is ownership. The buyer will be able to gain ownership of the original item through its built-in authentication. This is also known as “digital bragging rights“, which is the main consideration for item collectors.
One of the benefits of NFTs in the creation of more opportunities for budding artists and creators to monetise their masterpieces. They no longer have to undergo the traditional auction houses in selling their arts. Their items can be sold to consumers in NFT form. This way, they can be able to keep more profits.
The good news is that art is not the only thing that is bought and sold with NFTs. Even Taco Bell has auctioned an NFt art in order to raise funds for a charity. The said art was sold in just a matter of a few minutes, which rendered an amount of my more than $3000.
Where to buy NFTs
NFTs are powered by Ethereum. Therefore, just like cryptocurrencies, they can be stored through digital wallets. The first step is buying cryptocurrency such as Ether. Choose only the digital currencies that your provider accepts. Crypto can be purchased through your credit cards. Famous platforms such as Coinbase, Etoro and Kraken are known to be famous exchanges. Through your wallet of choice, you'll be able to move the NFT from your wallets. Some popular NFT markets are Opeansea.com, Rarible and Foundation.
Before buying your very first NFT, make sure that you have done thorough research so that you won't fall victim to scammers and impersonators.
The decision as to whether you purchase NFT or not depends on you. Just remember that NFTs are risky investments, and their future is uncertain. But if you have money to spare, then you might want to consider buying one, especially when you find that one thing valuable and holds a special meaning to you.