What is NFT and what is its value?

What are NFTs and where did they come from?

What is NFT? Abbreviation means non-fungible token, ie irreplaceable badge. This shows us that we are dealing with a unique, collectible, unique asset here. Not surprisingly, this has attracted the interest of investors willing to spend millions of dollars on oil.

NFT can take many forms. Can be JPG photo, gif, movie, text file. It must have a digital record, which is also a declaration, a certificate The given file is available in one copy only. The investor who decides to buy it will be its sole owner. Each token has a unique value, is not equal to the other NFT token and cannot be copied. Thus, they began to be used as proof of authenticity.

NFT is represented as a digital asset graphics, music, movies, game elements, virtual avatars and video game skins, even tweetsIt has been around since 2014, but is currently experiencing a renaissance as it becomes an increasingly popular method. buying and selling digital art. In fact, NFTs are like a physical collection, just digital.

Is NFT a cryptocurrency?

Where can I get NFT? In private exchanges and one of the most popular is the platform Open sea. Tokens are mostly sold and bought there in cryptocurrencies. Behind NFT is blockchain technology, one of the greatest revolutions in the world of new technologies. The entire cryptocurrency market also operates on a blockchain basis.

However, the similarities between NFT and cryptocurrencies end here. Cryptocurrencies can replace each other, ie they can be traded and exchanged for real physical money. They also have the same value – one Bitcoin is always equal to another Bitcoin. NFTs are different. Each of them may have a different value. Each NFT has a unique digital signature that prevents it from being exchanged or exchanged with each other. Hence the name “irreversible”. However, they can be sold on the secondary market.

How to invest in NFT?

How much is NFT? It certainly depends. Some of them achieve astronomical values ​​mainly due to the value of the collector. The consensus of the collector’s unchangeable token is based on the market, the brand and their rarity.

So NFT should be the basis for choosing and buying pays special attention to the validity of the token. Is it from an approved creator or a collector? As with all other online transactions, so do NFT payments Pay attention to the security of your digital payments and, for example, use websites of known origin. Buyer protection in the oil markets creates much to be desired. So it is worth researching and researching to make sure the payment for the token is going to the right place.

The NFT market, while boasting great growth, is still a very risky place. Therefore, you should not invest in these assets more than you can lose. To get started, experts recommend investing a small amount to test the market.

Is it profitable to invest in NFT?

NFT is mainly an opportunity for artists. Platforms like OpenSea have become auction houses for them. Their virtual works of art reach astonishing amounts, similar to those at real art auctions. In any case, NFT has already entered the auction house. Mike Winkelmann’s JPG work sold for $ 69 million at Christie’s.

According to Forbes, the oil market in 2021 alone was worth $ 41 billion. New NFTs entering the market can gain value in a very short time and bring great returns to investors. Prices are still rising. Continuous demand will shape the price. However, there is an investment risk associated with market dynamics.

It is difficult to say unequivocally what use of NFT technology will be accepted in the long run. So far, his story is too short to be judged rationally. Tokens are also very sensitive to fashion, which can change from day to day. Another risk associated with the oil market is the risk of fraud and theft. Because NFT is a virtual asset, it is often targeted by hackersimitators who modify and sell their work without the consent of the authors or unscrupulous cryptocurrency exchange operators.

Moreover, the resurgence of NFT does not mean that participation in this market is right or moral. It is also worth noting about the dark side of controversy and NFT non-convertible token exchangevery harmful to the environment. Basically about Exciting power consumption and therefore – a large carbon footprint. Increased demand and bargaining only lead to an increase in CO2 emissions.

Modern capitalist wealth-creating methods such as Bitcoin and NFT exacerbate the problem of global warming., temperature rise, species extinction, etc. Therefore, statements about the harmfulness of blockchain technology are widespread. So far, this has not diminished the popularity of NFT, although it is difficult to predict its future.

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