NFTs to 2021 is what Bitcoins were in 2017. There were polarizing opinions about the subject, and almost everyone was either interested in it or against it. However, there was one thing in common with them. More people were investing in them than the people that understood what they were. (Disclaimer: This is not financial advice but created for informational & educational purposes only)
In this post, we’ll be looking at NFTs, what they are, how they work, how the markets work, and how to start investing in them.
What Are NFTs?
NFTs or Non-fungible tokens are online tokens that are unique. They are digital assets representing real-world objects like art, paintings, music, and even videos. Unlike bitcoins, where every single bitcoin’s value is identical, each NFT has its unique value.
However, just like bitcoins and other cryptocurrencies, they’re all reliant on a blockchain. For the most part, NFTs are a part of the Ethereum blockchain, which is the main support for NFTs. And just like bitcoins, the purpose for them being on blockchains is to establish proof of ownership to guarantee the uniqueness of each NFT and to prove who owns it.
How Do They Work?
NFTs are essentially digital properties on blockchains, and because of this, they work similarly to how cryptocurrencies work. They require a relatively large amount of energy to use an energy-intensive function in computers called mining, and this might have been where you’ve first heard the problems of people with the subject. Because it requires a high amount of energy, the carbon footprint of NFTs is significantly high.
However, this doesn’t mean that NFTs are completely bad like some people may say it is. Although they have a huge carbon footprint—especially with how much of them are currently taking space on the ethereum block—there’s still hope for improvement.
There are several NFT owners, creators, and companies that are trying to take an environmentally-friendly approach like CurrencyWorks. They are is currently looking at the idea of releasing Zero Contact, a movie starring Anthony Hopkins that’s set to become an NFT without any carbon footprint. Specifically, they’ll be turning oil waste into energy that powers crypto.
What Is The NFT market?
The NFT market is where all the magic happens. It’s used by artists, brands, companies, and even gamers of all sorts. It’s a stepping stone for many artists and finding another way to sell art. It’s a place where companies can make money. And it’s a place where gamers can invest in non-fungible pieces of art to their heart’s content.
The NFT market has every digital art you can dream of and more. From major paintings like a now burnt Banksy to William Shatner’s memorabilia and even Taco Bell GIFs.
How Do We Start Investing in NFT?
Investing in NFT is more complicated than cryptocurrency because each NFT has a different value. However, this also means more potential to make more money with the right investments.
Buying NFTs, holding on to them while they increase in value, then selling them to others is the simplest way to explain how people make money off them if they aren’t artists. As of the moment, there are a variety of platforms and marketplaces like OpenSea, Axie Marketplace, and NBA Top Shot.
What do you think about NFTs? Are they going to be the next big thing? Or are they just a sham that doesn’t have any real value?
Feel free to let us know in the comments. And as usual, don’t forget to like and subscribe on our YouTube channel.