07/03/2022
These days NFT and cryptocurrency have been the talk of the town. You’ve probably met someone who invests in one of these things, someone who claims that these things are the future and someone who says that these things are worthless. But what are “these things” actually? Before we get into why people invest, we must understand what cryptocurrency and NFT are.
First we must understand the term “Fungible”. Fungible is the ability of a good asset to be readily interchanged for another of the same kind. Or in simpler terms, Fungible things are items that can be easily replaced with another item that is practically the same. The opposite goes for Non-Fungible
NFTs can be considered part of crypto culture. You need a sum of crypto currency to trade NFTs. The difference is indicated in the name. Cryptocurrency is like any other currency which is fungible. NFT is non fungible which is implied in the name of Non-Fungible Token.
Non-Fungible Tokens are unique digital assets addressing certifiable things, for example photographs, music, videos, and more. Each NFT is unique, the digital asset cannot be traded or supplanted with each other because each NFT exists on a decentralised digital platform that’s based on blockchain technology.
This new technology is mostly beneficial for digital creators, it gives them a way to sell work that there otherwise might not be much of a market for. Also NFTs have a feature that will pay them a percentage every time the NFT is sold or changes hands. But why do people buy them?
It depends on the people, some really enjoy the art that they bought, some bought them to join a certain community but most people bought them to invest. NFT can be worth nothing and then worth millions in a day or two, it depends on its popularity, hype and for some, luck and dedication (you know who we’re referring to).