NFTs have grown to enormous proportions in terms of popularity, moving billions of dollars annually.
Perhaps you’ve noticed that some celebrities are buying NFTs for thousands, if not millions of dollars, and the product they receive is an illustration’s certificate of ownership, for example.
These assets have an impact on several markets, particularly art and investments, as it recovers the scarcity and uniqueness of works that are shared for free on the internet.
But what exactly is an NFT, and why is it so important to understand this phenomenon that is changing the way people invest and collect?
What are NFTs?
NFTs are digital assets that represent unique real-world products such as artwork, music (and ringtones), photographs and videos. Non-Fungible Tokens (NFTs) generate the feeling of scarcity and ownership, where none – under any circumstances – can be equal to another.
Consider Leonardo Da Vinci’s painting of the Mona Lisa. This masterpiece is available in thousands of physical and digital copies around the world, and anyone with a cell phone can access it. The original work, however, is in the Louvre, and despite the fact that it can be viewed digitally on a smartphone screen, the work receives millions of visitors each year.
With due proportions, this is how an NFT works. Although anyone can print and reproduce the image, only one person owns the original with an authentic, blockchain-protected certificate, ensuring that that one-of-a-kind piece cannot be duplicated under any circumstances.
Examples of NFTs
1. Art – This is the most common type of NFT, and it includes photographs, videos, gifs, and other forms of artwork.
2. Music – A person can now purchase a song, and even if it is played on other devices, the owner retains ownership of the copyright. Ringtones are also included in this category.
3. In-Game Items – The world of digital games is an ocean of opportunities for this market, and it is possible to sell NFTs of items, skins, characters, voices and so on.
4. Memes – Yes, you read that correctly. Even memes can be turned into NFTs. A famous example is Nyan Cat, a 2011 meme in gif form that was sold for $590,000 worth of cryptocurrency in 2021.
5. Trading Cards – Another type of NFT that is gaining popularity among collectors is trading cards. It is possible to find everything from art cards created by a specific artist to MLB-licensed sports cards.
Okay, maybe you’re interested in this market, but where and how can you safely buy and sell NFTs?
7 Best NFT Marketplaces
Certain conditions must be met before purchasing, creating, or selling an NFT:
- Create a digital wallet to store cryptocurrencies and NFTs
- Buy some cryptocurrency, which are coins used to buy NFTs
After that, you’ll be able to access marketplaces and trade NFTs of all kinds.
NFTs have grown in popularity year after year since its inception in 2014. And here are some statistics about this market that you might find interesting:
Twitter co-founder Jack Dorsey sold his first ever tweet as an NFT for more than $2.9 million.
he most valuable NFT is worth more than $69 million.
An estimated 250,000 people trade NFTs each month on OpenSea.
23% of millennials in the US collect NFTs.
Nearly $41 billion worth of crypto was spent on the NFT marketplaces in 2021.
Is It For You?
Well, NFTs have been on the market for over seven years, and without realizing it, they’ve taken on a huge proportion. Because they are collectible and exclusive, they mess with the vanity of being the only person to own a certain item, and that’s how people, companies and creators are increasing their collections or profiting in this market.
But what about you? Were you interested in starting your own collection or in producing some NFTs? Do you think this market could be a good investment for you?
I would love to know your opinion. Leave it here in the comments.