Surely you have heard or seen the term NFT a lot in recent months. You must be curious to know about it and how to make money out of it. NFT (non-fungible token) is a cryptographic token that represents something unique. This token, which exists in a blockchain network, represents digital assets that are not exchangeable with each other for the same value or that cannot be divided into smaller values.
NFT can be defined as a unique digital asset that contains an image, sound file, video or proof of the digital equivalent of a physical asset. NFTs have become one of the most popular topics in the cryptocurrency world lately. Today, NFTs are widely used for digital artworks, but there are also other uses such as interactive game items and sports collectibles.
What differentiates an NFT from a bitcoin is its uniqueness. The former guarantees irrevocable property backing for the owner, while the latter is an exchangeable item. And it is precisely this guarantee of full traceability for non-material items, such as works of art that makes NFT so revolutionary.
So how does it help making money, you might ask! Since 2021, the NFTs have seen immense growth and adoption in different sectors. NFTs can generate revenue for artists, gamers and other producers of culture as well as their owners or collectors. Any artwork, music, design piece, GIF, games and other exclusive items can be traded in the form of NFT. It can be traded generating profit for the producers, traders and collectors of NFTs. Each NFT is unique as it has several specific characteristics such as rarity, scarcity, exclusivity, and authenticity.
And What Makes NFTs so Important?
In recent months, NFTs have become more important as they help prove ownership of a digital asset. These tokens are verifiable and can be traced back to the original creator. Thus, each owner of an NFT can be certain that only he owns it. Another thing that makes them unique is that they cannot be destroyed, deleted or duplicated as the token only exists on the native platform stored on the blockchain network.
How can I buy NFT?
To acquire an NFT, ETH or WAX Crypto Marketing currencies must be used. Most users prefer to use ETH, but each platform can choose the type of digital wallet they will accept. For example, WAX is most popular for purchases involving virtual characters or video games. Moreover, there are now a lot of platforms where you can buy NFTs. Many digital marketing services in Canada offer comprehensive NFT purchasing methods or advice potential buyers the right way to buy it.
Like any asset, the value of an NFT depends on its supply and demand game. Some voices continue to affirm that the determination of the price of a cryptographic token depends on supply and demand, in a critical tone and in relation to its volatility. You might ask if is there any good in NFT world, whose value does not depend on these variables?
It is true that the commercialization of these assets contains a speculative component. The buyer always believes that the demand for the NFT will grow and that, therefore, the value of his token will rise.
That is why, particularly in the world of NFTs, the concept of digital scarcity emerges strongly. NFTs will be worth as long as there are few of them, as long as the abundance and existence of said assets is controlled digitally.
We should not confuse this concept of scarcity with the concept of non-fungibility. As much as NFTs by definition are non-fungible and have a unique serial number, if the supply of a given NFT increases, it will no longer be truly unique, which decreases its value.
The Cultural Revolution through the NFTs
Inventions like the NFTs seem to really open the door to the third millennium, with no chance of going back. It is such an innovative and disruptive technology that its impacts are still difficult to measure.
For now, what can be seen are the multiple possibilities opened up with the use of NFTs, which can radically transform the way we deal with the arts, creating an environment in which the limits between the real and the virtual will be diluted.