What Is An NFT? The Latest Blockchain Trend
If you’re into cryptocurrencies, you’ve probably heard the term “NFT” bandied about a few times. In recent times, NFTs have soared in popularity among crypto enthusiasts and digital investors.
But what is an NFT? NFT stands for Non-Fungible Token. This refers to a digital certificate that serves as proof of ownership for a digital asset. A digital asset is any digital file that has value to someone else.
Among these digital assets, videos, audio clips, motion graphics, and digital art are the most popular.
Digital art has become the most popular asset for crypto investors wishing to secure NFTs.
Here’s what you need to know about what are NFTs and how to get NFTs:
Why Crypto Users Like NFTs
As cryptocurrency becomes more popular, crypto users are looking to invest their coins as you would with fiat currency. NFTs show that you are the rightful owner of an original digital asset.
One concern that skeptics have regarding NFTs, is that digital assets can be easily copied. So what’s the value of having proof of ownership for the original digital asset?
Oddly enough, you have to think about digital assets in the same way you think about physical assets. There’s greater value in owning the Master Recording of an album than owning a copy of the album.
Likewise, there’s more value in the first edition of a popular novel than in any copy of the book.
The same logic applies to digital assets. This is why NFTs have caught on, as they offer an opportunity to own the original of a valuable asset.
Among popular digital assets, digital art currently has the highest demand. Many crypto investors have found digital art to be a great investment.
As such, we can expect to see more crypto investors buying digital art. We can also expect more artists to offer their digital art with an option to purchase an NFT.
But how did digital art become so popular? This was largely due to an artist named Beeple and an investor named MetaKovan.
The American artist Mike Winkelmann had sold NFTs of his digital art for several years. He did this under his pseudonym, Beeple. One of his most popular buyers was a mysterious crypto investor known as MetaKovan.
In 2021, Beeple sold his digital art Everydays using the auction house Christie’s. MetaKovan bought the painting, paying slightly over 40,000 ETH (Ethereum). At the time of sale, this amount was equivalent to $69 Million!
As one can expect, this became a huge news story. MetaKovan revealed his identity. The Indian entrepreneur Vignesh Sundaresan revealed he wanted to inspire others to invest in digital art.
As we learn more about his reasons why he stands by NFTs and cryptocurrencies, we can expect to see more demand for digital art.
How NFTs Benefit Creators and Buyers
But why are NFTs so valuable? Are digital art and other assets as valuable as tangible assets?
The main advantage of NFTs is that they are open to the world in a way that tangible assets aren’t. Cryptocurrencies, such as Bitcoin, have given the world a universal currency.
A person in a developed nation can buy, sell, and invest using cryptocurrency. A person in a failed state can also do the same.
As such, NFTs provide a way for people across borders to invest and promote art that they believe in. The story of Beeple and MetaKovan is a classic example.
It’s the story of an Indian entrepreneur who wanted to promote a work of art created by an American artist. It gave a person from one culture an opportunity to promote artwork by a person from another culture.
NFTs give a voice to the voiceless. Through the internet, we’ve been able to hear voices from cultures across the world.
The internet has helped different cultures increase their soft power throughout the world. NFTs are the latest opportunity for anyone to promote art that they find valuable.
As for creators, NFTs ensure that they always receive royalties from the sale of their work. In the physical world, an artist earns royalties once their painting gets sold. This is the only time they’ll get paid for their work.
With an NFT, the artist retains some rights to the art. Whenever the NFT gets sold, they’ll always earn royalties. So if MetaKovan decides to sell Everydays in the future, Beeple will earn even more money for his work!
How to Get NFTs and Why You Might Want Them
You want to first look at services such as https://www.bytefederal.com/uniswap/ to buy, sell, and trade cryptocurrencies.
If you wish to acquire NFTs, you must first focus on accumulating as much cryptocurrency as you can. Once you’ve done this, you can start looking for NFTs.
You can start by looking through online marketplaces that sell digital assets as NFTs. If there’s a particular creator who intrigues you, they can sell you their NFTs directly.
As with all investments, only you can know what’s best for your portfolio. There have been numerous stories of NFTs being bought at a low price and later sold for an exorbitant amount.
You also want to decide why you wish to purchase NFTs. You might wish to buy them to sell them at a later stage. Or you might want to display your NFTs in the virtual world.
Digital art will become more visible in virtual art galleries. Digital music will become played in virtual concerts. These types of NFTs will get bought by collectors and curators, rather than investors.
Now You Know What Is an NFT
Now that you know what is an NFT, you can consider if you want to invest in them yourself.
As this is still speculative, you want to make sure you continue to do your own research. But it seems that NFTs are here to stay for years to come.
Just as MetaKovan’s purchase of Beeple’s painting has become headline news, we expect to see more digital investors rush into buying NFTs. We can also expect more artists to offer their work as NFTs.
You can also read more great content on cryptocurrencies on our website!