NFTs are not something new but certainly the latest rage in the cryptocurrency community. It has gained popularity in the last few years, with investors taking a notable interest in them. However, is there a future for NFTs thriving or they’re just catching the eyes of the curious and hopeful?
What are NFTs?
Non-fungible tokens are a form of cryptocurrency which are created on a smart contract platform like Ethereum. Simply put, they are digital collectibles that represent the ownership of an asset. Collectors have taken an interest in NFTs lately, as it is an investment in the long hall.
Fungible VS Non-Fungible
Cryptocurrencies are fungible which means that all units and coins are identical. If you own a coin, all the others on the network are the same. Non-fungible tokens, on the other hand, are unique and cannot be generated again.
The non-fungible assets can be used for various things, from cartoon characters to types of currency. The recent hype is, however, regarding digital art and collectibles. Investors have realized that collectibles and unique artworks can be of high monetary value. NFTs have become popular within the realm of games, sports, and artworks.
The Working of NFTs
NFTs function differently on various platforms. Let’s narrow it down to Ethereum as it is the most common.
You can create an NFT on the Ethereum blockchain which is unique and cannot be recreated. It signifies your ownership which cannot be altered in any way. It’s open for anyone to view or purchase. Think of it as a collectible item that is on display for everyone but only one can own it at a time. In most cases, NFT is represented by an image that is digital artwork. One can argue that digital artwork can be replicated quite easily. However, it is not the same as owning the original, and its presence on the blockchain is what makes it valuable.
Just like the painting of Mona Lisa; we see it everywhere; may it be advertisement or recreation of artworks. However, there is one that you call original and its value is incomparable.
Buying & Trading NFTs
Before you purchase an NFT, you would need to know its true value. This is simply if you like it enough to purchase it or not. For instance, you may enjoy a game, and buy an official NFT collectible of your favourite character. That would be high in terms of monetary value, and also something that interests you.
The image of an NFT is a right-click away to be saved on any computer. However, that is just a copy of the original which resides safely on the blockchain. You cannot own it unless you buy it.
Moreover, you may also go for verified sellers, such as a musician you admire who announces his Ethereum address and confirms all NFTs available there are his. These are some ways you can pick and choose to put your money where you like. Many times, NFTs will give you access to privileges. If you invest in a gaming NFT, you may receive a reward during your gameplay.
You might feel some NFTs don’t seem valuable but sell for millions of dollars. This may take place but is a rare happening. There are also crypto whales, who own a chunk of cryptocurrencies, and they would purchase an NFT from themselves, pushing the price to skyrocket. Occasionally, you may see this happening, bear in mind to not get engulfed by the price tag.
NFTs – Smart Investment?
Purchasing an NFT because you like it is a personal choice. Investing in it, however, is another thing altogether. Everything takes time to gain in value, and so would the NFTs you invest in.
Since NFTs are digital assets, it is difficult to make a definite analysis in comparison to tangible artworks. Keeping an eye on its growing popularity, it doesn’t seem like it’s losing value anytime soon. We have digital currencies like Bitcoin which saw a high of USD 68,000 at a point, so there is room for more digital assets to thrive.
Before you decide to dive into the arena of NFTs, you would need to survey the market on your own to see what is your cup of tea.
Christiano Ronaldo goes in for an NFT Partnership
The Portuguese footballer, Christiano Ronaldo joins forces with Binance to work on a series of NFT collections. This will exclusively launch on Binance’s official NFT platform. The users registered with Binance from selected countries will be able to make purchases if they wish.
This news broke into the market and increased the interest in NFTs amongst investors and collectors. Ronaldo hopes to build the relationship with his fans stronger by bringing unmatched experiences through crypto public relations company.
Binance is gaining hype and cashing on the new craze of NFTs by making smart decisions. They are aiming to take sports fandom to a new high by making it accessible for more people. Christiano Ronaldo is a household name when we discuss football, with notable rewards under his belt. Without a doubt, this news has come as a pleasant surprise for all his fans.
We cannot wait to see and bring to you what the collection entails!