NFT stands for non-fungible token. NFTs started becoming known in 2021, especially within the crypto realm. NFTs are usually shown as pieces of digital art. However, as NFTs grow and adapt to more everyday personal usage, you will start to see different NFT concepts. In today’s formal article about NFTs, we will dive into what NFTs are and if an NFT is a solid investment for YOU!
A true definition of a non-fungible token (NFT) would be cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Let’s break down that statement and make it a bit easier to understand. An NFT can be ANYTHING, but NFTs are generally seen as digital art (as stated above) or some form of digital item. An NFT could be a picture you see online or even a car driven within the Metaverse. An NFT could be a video or a pair of shoes on your virtual world character in a video game you play. With the versatility of NFTs, the possibilities are endless.
Getting back into the definition of an NFT, you can see it is an asset stored upon the blockchain with its unique code. As Bitcoin or other cryptocurrencies are on the blockchain, so are NFTs. This sets an NFT apart from other digital art, the blockchain code that proves YOU are full/part owner of that NFT. Anyone can screenshot or save that digital art piece to their phone, but without blockchain proof of ownership, it shows they do NOT own that NFT. Having the blockchain proof of ownership, people will know you own that NFT. This is the beauty of NFTs: owning a digital asset that can be kept or sold in the future to someone wanting to acknowledge that NFT.
An NFT is generally purchased with cryptocurrencies through whoever sells them (single personnel or a business). Still, sometimes you can buy them with debit/credit information given to the seller. I have seen NFTs sell for as cheap as $5 per digital asset to even multimillion dollars per single asset. NFTs should be considered investments since each digital asset’s price will vary. The price changes drastically, so knowing what you are purchasing is crucial. Sometimes certain NFTs are trending while others are not. Making sure you do your research on NFTs is needed before making the jump into them.
As stated above, an NFT could be digital art, a video, a pair of shoes on your character in the Metaverse, or even digital land purchased in a virtual world. The list of NFTs is endless and keeps growing every day. Staying up to date on what is popular and trending is key to NFT knowledge. As our physical world is becoming more virtual (more people are using the internet for MANY uses), NFTs will become used more consistently. This is your chance to do your research now and get in on the NFT hype before everyone wants in. This is not financial advice, so make sure you do what is in your best interest before investing!
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Written by: Matt Senn
