NFTs, short for non-fungible tokens, are the new thing on the blockchain market. They do differ from normal cryptocurrencies in various aspects, but are still traded via Blockchain. In fact, NF tokens are not interchangeable, they´re unique. And in their uniqueness, they represent the worth of a specific digital file and prove the buyer´s ownership. But why would anyone want to invest money in digital creations and have them slumber on the blockchain?
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What Are NFTs?
NFTs are blockchain tokens. For the most part, they are administered by creators and investors on the Ethereum blockchain. Their value is manifested by the amount of Ether coins that was paid for the file. NFTs are a very modern form of art investment, which has only been around since 2017. To learn more about the hype of NFTs visit the website nftexp.
Why Would Anyone Spend Money on This?
If a big investor pays a huge amount of money for a popular oil painting by the dead artist Picasso, nobody would question their motivations. Art is a great store of value. Digital art is not much different from analogue artwork – it´s a creation that features skills, technique and expertise that are combined with a message. And even though hashmasks, video games, virtual baseball cards or collages cannot be hung on a wall, they exist in an abstract way, storing value on the blockchain.
Many contemporary artists are of great potential – just like Van Gogh or Rembrandt used to be back in the day. Instead of storing their artwork away, they sell it via blockchain technology.
Why Are People Buying NFTs Now?
Now is the perfect time to invest in NFTs. Just like with every trend, you get the best opportunities at the very beginning of it. That is when most people haven´t heard of it yet or simply don´t trust in its potential. Rewind a few years and remember the time when cryptocurrencies hit the market: Back then, only a small group of people invested in Bitcoin. Today, those people are rich.
The NFT market hasn´t inflated yet. What investors find on platforms now, are collectibles and limited editions that are innovative and promising.
Will NFTs Remain Their Value?
Just like with any other type of investment, value can be volatile. But with NFTs, the value doesn´t depend on market fluctuations. As long as the investor picks promising artwork and pays a realistic amount of crypto coins, chances are high that the digital creation will remain its value. Some pieces even gain more and more value.
What Do You Get When You Buy an NFT?
Buying an NFT makes you the legal owner of a digital file. That can be a photo, a hashmask, a certificate, a video game or a pixel collage. The collage “Everydays: The First 5000 Days” by the artist Beeps brought in the incredible amount of almost 70 Million USD. But there is a broad variety of things you can invest in when buying an NFT. If you prefer an interactive investment, you can try games like CryptoKitties, where you buy a unique digital cat to take care of. If you breed your kitty and it has babies, you can have them be listed on the market for new investors to buy them. But there are also NBA collectibles, comparable to baseball cards. The offer is so diverse that every interested investor can find the perfect store of value.
NFT Buyers Are Not Necessarily Fans
In order to invest in NFTs you neither need to be a fan nor a connoisseur of a specific artist or creational technique. All you need is a good gut feeling and the skill to smell a chance when you see it. You don´t even need to be convinced of the fact that the NFT market is a serious thing – experience will show you that it is and that any good investment could be the base of financial security.