“Hey, did you hear the news? Somebody bought Twitter CEO Jack Dorsay’s first tweet for $2.9M as an NFT ” — Wait a minute, NF-WHAT?
If you’ve experienced a crippling, mind-boggling FOMO surge through your veins after reading this viral story – believe it – you’re not the only one.
This so-called NFT technology has taken the virtual auction industry by storm and most of us by surprise. You can sell anything as an NFT, regardless of how bizarre it may sound — and Taco Bell auctioning their “Swivel Taco” NFTs for 100 Ethereum proves our point.
So, what led people to buy one virtual, inedible taco artwork for $196K? No, seriously, what’s up with this sudden hype?
Don’t fret, people! Here’s everything you need to know about this rapidly booming technology.
So, What Is An NFT?
It’s short for Non-Fungible Tokens. Ring any bells?
No, I’m still confused. How does it all work?
Okay, suppose you’re trading Ethereums for one another — you’ll receive the same currency in return for the same value, which makes it a fungible asset. Alright?
Here’s the deal with non-fungible tokens — they’re one-of-a-kind, irreplaceable assets. The crazy part? NFTs can be in any format, be it music, artwork, animation, or just straight-up bizarre, inexplicable stuff like the video of someone burning a Banksy painting.
So, let’s say, if you’re trading an exclusive Nyan cat artwork, you’ll probably receive a super-rare Pokemon trading card in exchange.
But here’s the catch — it’ll be the only original piece in the world, and the ownership rights will be all yours. Now that’s something to brag about.
I’ve Heard NFTs Are Related To Crypto. Is It True?
Glad you asked. Yes, every NFT is individually encoded, just like cryptocurrencies. So don’t worry about some hacker copying or duplicating the million-dollar artwork NFT you had just bought from their basement.
Also, most of these NFTs are integral to the ETH blockchain. Besides, other blockchains, including Chinese crypto chain TRON, are joining the new wave recently.
But How Did It Become So Popular, All Of A Sudden?
Okay, so even though the world was introduced to NFTs way back in 2014, the newly-rising virtual artwork sales culture has, out of nowhere, skyrocketed its notoriety. Some refer to it as the renaissance of rare art collections, and some see it as the much-awaited monetization platform artists deserved.
Either way, it’s the future of content auctioning.
I’m Convinced. How Can I Buy NFTs?
Before making a purchase, you’d need to create an e-wallet that supports cryptos and NFTs (bonus cookies if you already have one). Subsequently, you’d need to purchase the specific cryptocurrency your NFT seller accepts to make the trade happen.
There you go, now you’re all set to buy your first ever NFT.
Wait, I’m Still A Bit Skeptical… Should I Buy NFTs?
Just because you’re capable of doing something doesn’t mean you should go all-in at first-try.
A Forbes study claims that although NFT is a 7-year-old tech, it’s relatively very new as an investment option. We’d agree on that.
Just imagine, is the artwork you’ve bought going to stay relevant in, let’s say, the next five years? Considering the severe lack of NFT’s past performance history, it’s hard to predict.
Ultimately, it’s a personal decision, and the wisest course would be to start with small purchases if you’re really into it. Or if you have money to spare for something unique that you’ve deeply resonated with yourself, then, by all means, get sole ownership.
From million-dollar tweets to Shawn Mendes accessories, anything and everything can be sold as NFTs. This up-and-rising trend of collecting unique artworks and content has resulted in a thriving business of $533 million. So, when are you trying your hands on it?
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