5 Amazing Things You Need to Know About NFTs

NFT

The Non-Fungible Tokens (NFTs) are a hot topic among the masses. Many are confused with its concept while others are already thriving with their investments. These virtual assets have changed the way of ownership in different sectors. From gaming to music, supply chain, hospitality, etc. every sector is adopting NFTs. You can also trade NFTs. However, you will require an internet connection for it. So, subscribe to a reliable provider like Spectrum internet to easily trade them on the web.

NFTs are receiving the same backlash as that of blockchain. Even with evident success, critics are criticizing it and believe it to be a fad. However, there are some amazing things you need to know about NFTs.

Understanding NFTs

Before moving further, it is important to clear the misunderstandings associated with NFTs. These Non-Fungible Tokens are unique crypto assets. Unlike cryptocurrencies, NFTs cannot be exchanged with another token having the same value. People are using NFTs to signify the ownership of digital artworks and valuables.

Even though NFTs have been around since 2014 but they have recently gained popularity. Today, it is a renowned method for buying and selling digitized artworks. Now, let’s learn some amazing things about NFTs that can change your perspective about it.

5 Remarkable Things About NFTs

Here are the top 5 amazing things you need to know about the Non-Fungible Tokens.

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#1. Smart Contracts Making Anything a Digitized Asset

Everything that holds to potential to become digitized can become a part of the NFT world. Even though the prime focus of NFT is on the sale of digital art and collectibles but the technology’s versatility permits almost everything to be tokenized. For instance, in-game assets, domain names, songs, Twitter tweets, and others. They all can be linked via a smart contract to produce proof of ownership.

#2. Ethereum The Major NFT Supporter

Even though Solana NFTs is making a crushing roar since 2021, the prominent blockchain supporter of NFTs is Ethereum. ETH supports many NFT collections and allows the sale in many online auctions. Since Ethereum is widely known for its security and protection, people prefer it to enjoy stable and secure transactions. If you have ETH in your blockchain wallet, you can utilize it and purchase some digital NFTs.

#3. Assisting Artists in Reaching Potential Customers

When it comes to the art industry, NFTs are being considered the “new disruptors”. They are taking over the space once owned by traditional investors. Artists like Fewocious and Trevor Jones are working together with other investors to find exceptional things from the marketplaces like SuperRare, OpenSea, and Nifty Gateway.

With over 1.4 million unique users every day, the sales volume has crossed $165,348 in 2021. Opensea claims that in 2021 they witnessed $20 billion in sales in NFT. Whereas Rarible netted $260 million in 2021.

#4. Highly Profitable Investment in NFTs

NFTs are now believed as a potential market for investment and therefore you can see the digital gold rush. Because of NFTs, Cryptopunk increased its value from $1,646 to a whopping amount of $11.8 million in a few years. This is a 71,000% increment!

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The industry is growing and therefore the chance of investment is higher than before. In June 2021, a generative art Fidenza was sold for 0.58 ETH which is $1,400. Two months later, the same art piece was sold for 1,000 ETH which is $3.3 million.

#5. Twitter In the Game

It is shocking for many, but Twitter is indeed in the NFTs game. In 2021 March, the co-founder of Twitter, Jack Dorsey, who is an NFT enthusiast sold his first Tweet as an NFT for $2.9 million. What’s more interesting is that during the auction for the tweet, two giants V.Cent.co and Sina Estavi, CEO of Bridge Oracle were having a price war. Estavi won it, who was also bidding on Elon Musk’s tweets. The money acquired by Dorsey from the sales went to a poverty-fighting charity.

Conclusion

NFTs are new, therefore, the market is bubbling with mind-boggling sales. It will be worthful to test a small amount of money for the investment. But there is something you need to understand before you start investing. The value of NFTs solely depends upon the percentage of money someone else is ready to pay. If Sina Estavi didn’t believe the worth of the first tweet of Jack Dorsey was $2.9 million, then such sales were not possible.

These stats and pointers confirm that NFTs are not a fad and are here to stay no matter what. You can decide now if Non-Fungible Tokens are worth the shot or not or if the critics are right about its worth and value! However, always do research before planning an investment.

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