What are Non-Fungible Tokens (NFTs): A Future of Fine Art Collecting?

Creators & Collectors should read this before jumping into the crypto art market.

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What are NFTs?

Technically, they are called “Non-Fungible Tokens.” The word “non-Fungible” means a one-of-a-kind asset that is non-replaceable with anything else.

Um, Speak English Please?

Okay. Here’s an example.

Imagine you are the world’s greatest artist. That’s correct. You are Leonardo Da Vinci. Now, you’ve painted the most famous portrait of the Mona Lisa and showcased it in the most exquisite art museum in the world.

Now, everyone can take a picture of your painting, create almost something similar to the original or simply buy a print. But there will ever be the only original painting that’ll exist & that’s a privilege.

NFTs follow the exact concept in the digital world where you can buy and sell any intangible property which cannot be replaced by any means. Think of it as a privilege that can be monetized and capitalized globally.

How NFTs are Different than Cryptocurrencies?

Glad you asked. Let’s say if you want to tread a bitcoin for another bitcoin, what will you get? Bitcoin or any physical form of money is a “Fungible” currency. So, if you trade a bitcoin with bitcoin, you will still get nothing but, you guessed it. A bitcoin. Same value with no profit.

But, the “Non-Fungible” factor in NFTs is what makes them unique. Think of it as an Ice-cream. You get the same waffle cone each time but, you can choose which flavor you get on top based on the taste and rarity. You can now trade yours, let’s say the tastiest ice cream in the world with someone and get a whole different flavor in return or you can just take the money as well. As crazy as it sounds, wait until you know the flavors. Um, I mean NFTs.

So, NFT is Art?

Anything in a digital supermarket is an NFT! Such as Images, videos, music, drawings, and, even this article can be sold as an NFT. Won’t believe us? Here’s an example: Recently the founder of Twitter sold one of his tweets as an NFT for just under $3 million. Why? Because you can keep it as an autograph or sell it for more profit that’s why.

The cryptocurrency in the image cannot be an NFT. But, this JPG image of it can be. [Source: Etheriem]

So, Can I Sell My WhatsApp Stickers as NFTs?

Good question. we’re sure no one is going to stop you from doing that. But only if you are a digital sticker artist and you own a sticker with a large community that is willing to bid on your sticker. As peculiar as it sounds, it’s not going to be so easy as a lot of efforts are being made to create digital art, an evolution of fine art collecting.

Who Buy NFTs?

Here’s where it gets exciting. I mean, the person who bought Beeple’s video for $6.6 million must be someone out of his mind, right? Ouch.

But, you see, if you have an abundance of food and shelter and money isn’t your concern anymore, your next frontier will be to create value to stuff that does not have any inherent value and create a certain excitement with profits as well.

If you are an aspiring digital artist, it’s your perfect chance to create and sell your art on platforms like OpenSea, MintSpace & SourceForge. There are many communities and supporters who will happily buy your NFT projects for a profitable start.

What if Someone Stole my NFT?

That’s where the “T” comes as a Token. This means, with every asset you buy, comes a token that can be thought of as a certificate of ownership. Every minted asset is tokenized with the help of a distributed public ledger that records global transactions on a blockchain called Ethereum. So, there’s no way anyone can plan a digital museum heist of NFTs.

Is This a New Bubble?

It has been a weird roller coaster ride since the NFTs launch in 2015. Looking at the graph, one might also create an NFT out of all the controversies and actual facts rattling around us & sell it at the highest to save this supermarket. who knows?

Although their presence is so new, the world’s third highest-paid artist, Mike Winkelmann, also known as “Beeple,” thinks that NFTs are going to be a future bubble for investments. Whereas skeptics like David Gerard thinks this will be a risky venture and might burst like the famous dot-com bubble in the united states.

Since the future of NFTs is uncertain, visit us to stay updated weekly. The future of fine art collecting is going to be exciting.

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