From artwork to a Tweet – anything can be bought as an NFT.
“Hey, did you hear the news? Somebody just bought Twitter CEO Jack Dorsay’s first tweet ever 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 technology has taken the virtual auction industry by storm. You can sell anything as an NFT. Taco Bell auctioning their “Swivel Taco” NFTs for 100 Ethereum proves our point.
What led people to buy one virtual, inedible taco artwork for $196K? Here’s everything you need to know.
So, What Is An NFT?
It’s short for Non-Fungible Tokens. Ring any bells? Suppose you’re trading Ethereums for one another — you’ll receive the same currency in return for the same value, making it a fungible asset.
Non-fungible tokens are one-of-a-kind, irreplaceable assets. NFTs can be in any format; music, artwork, animation, or bizarre, inexplicable stuff like the video of someone burning a Banksy painting.
If you’re trading an exclusive Nyan cat artwork, you’ll receive a super-rare Pokemon trading card in exchange.
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.
Are NFT’s Related to Crypto?
Like cryptocurrencies, every one of them is individually encoded. Most of these NFTs are an integral part of the ETH blockchain. Besides, other blockchains, including the Chinese crypto chain TRON, are joining the new wave.
But How Did It Become So Popular?
Even though the world was introduced to NFTs way back in 2014, the newly-rising virtual artwork sales culture has skyrocketed its notoriety. Some refer to it as the renaissance of rare art collections. Some see it as the much-awaited monetization platform artists deserved.
Either way, it’s the future of content auctioning.
How Do I Buy NFTs?
Before making a purchase, you’d need to create an e-wallet that supports cryptos and NFTs. You’d need to purchase the specific cryptocurrency your NFT seller accepts to make the trade happen.
Should I Buy NFTs?
A Forbes study claims that although NFT is a 7-year old tech, it’s relatively new as an investment option.
Will the artwork you’ve bought stay relevant in the next five years? Considering the severe lack of past performance history, it’s hard to predict. It’s a personal decision but start with small purchases if you’re into it.
Summing It Up
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 in total.