NFT Facts: Myths & Truths

NFTs are the latest trend and innovation that is changing the way we see things.

For the upcoming new year, NFTs are a groundbreaking thing that is making everyone talk and think differently. So, what is the big deal about NFTs?

What are NFTs

NFTs can be defined as “non-fungible tokens.” A non-fungible token is one of a kind and non-interchangeable piece of data. This data or unit is on a blockchain, which can be defined as a form of digital ledger.

For example, with art, an NFT in art will be like buying a digital artwork on the internet. But, more than that the NFT will be a unique digital token known. This token will prove your authority over the artwork you bought.

NFTs are currently taking the digital art and collectables world by storm. When everyone worldwide believed Bitcoin as the digital answer to currency, NFTs are now pitched as the digital answer to collectibles. Digital artists see their lives changing thanks to massive sales to a new crypto-audience.

History of NFTs

The first ever NFT was created in New York in the USA. The “NFT”, called Quantum, was made and pioneered by Kevin McCoy and Anil Dash in May 2014. The future of NFTs grew and developed quickly enough.

Today, NFTs are often linked and used with certain types of media. For example, you can use NFTs with digital files such as photos, videos, and audio. For the future, many see NFTs as revolutionizing the way we think about digital assets, making their ownership legitimate and their sale secure. For many artists and collectors, NFTs represent the future, enabling financial freedom for creativity and opportunities to invest.

NFTs are one-of-a-kind creations

An NFT is more special than many realize. Every individual NFT commonly uses the Ethereum token standard of ERC-721. What this means is that each and every NFT minted is a verifiably unique asset that is worth as much as someone’s willing to pay for it.

NFTs have unique attributes that make them really valuable and unique . Before Dogecoin and NFTs became the new hype and big thing, there were already a few marketplaces for non fungible token and digital items.

In summary, because every NFT is unique, they can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets.

NFTS are not exactly like Cryptocurrencies but more Special

Many may compare NFTs to cryptocurrencies, but NFTs are unique and special. For example, unlike Bitcoin, NFTs are individualized. NFTs have unique attributes that make them really valuable and unique.

Something like Bitcoin is always equal to another Bitcoin, but this is not the case with NFTs. An NFT is basically closer to what would be like a digital signature. Furthermore, the NFT makes it impossible for an NFT to be exchanged. As the NFT is not exchangeable for or equal to one another. This would be similar to how you would see the Mona Lisa, by Leanardo Da Vinci, as an original piece. Therefore, an NFT is just as original as a piece of artwork like this.

NFTs can benefit musicians and filmmakers in the Creative Industry

Artists these days have a hard time connecting on their own. However, many will be surprised how beneficial NFTs have been since their inception. Investing in the arts and artists is made easier with NFTs.

For example, American rock band, Interpol released a limited series of eight non-fungible tokens developed with filmmaker David Lynch. The animated films were accompanied with the music of Interpol.

NFT platforms offer a quick and less challenging way for all types of artists to penetrate the market. Therefore, NFTS gives a boost to these industries.  that has long been dominated by famous names and those with connections. All in all, NFTs make it easier and make it easier to connect buyers to artists.

NFTs offer a profitable opportunity for Investment

18237500 – businessman hand pointing to investment as concept

Investors are now seeing NFTs as a moneymaker.  Some seem to see NFTs as something similar to a “gold rush,” but a digital version. For example, an NFT creation like Cryptopunk is greatly increasing in value by crazy amounts. An estimated amount would be  71,000% from $1646 to $11.8 million in a short amount of years.

The mentality of many investors is to jump on the bandwagon especially if it is trending. All in all, the NFT Market and Investment potential is gargantuan. The element that is growing is more within crypto-investment in the tech industry. Many may not realize that the NFT market is growing faster than many other industries.

In general, the NFT market had nearly 18,000% growth  in a year. The market for NFTs and industry in general has generated $2.5 billion in sales. This 18,000% growth in transactions is translating into a thriving and healthy economy. For example, the industry has reached $3.4 billion in sales alone early on in 2021. The potential for NFTs are changing the way we view creativity.

NFTs have been sold for nearly 70 million dollars

The rising value of NFTs has created an opportunity to jump on a goldmine of investment. Why? The price of NFTs is shocking. For example, an NFT sold for $69.3 million, which shows the investment appeal is robust. This particular NFT is called Beeple’s “Everydays: the First 5000 Days.” This NFT art is the most expensive NFT ever sold.

The original creator had been active from May 2007 to February 2021, where there was a lot of artwork that was available. In particular,  all of the artwork was put  all into one picture.

The original value of the artwork grew quickly and immeasurably. The original piece of art was almost 10 times the price of any single NFT.  There is a clear case that NFTs are heading towards becoming a valuable art form, which will be very profitable.

NFTs make money for your digital art and artwork

If you are an artist and make art then profitizing your work is challenging. However, this is a possibility with NFTs. Selling artwork is a market that has been transformed by NFTS.

You have the ability to sell digital art, which opens many possibilities. Also, you have the potential of the digital form, with NFTs, thus making and proving ownership more feasible. With this digital art, you can sell and make money with integrity, security, and confidence.

NFTs have created easier  access for artists. Now, there are many ways people can get involved and make contact. At the moment, the art world had had intense bidding wars. Also, there have been some odd sales, which would have been harder to pull off without NFTs.

NFTs are more affordable than you think

In reality, NFTs are more reasonably priced than many may realize. Even though some NFTs are expensive there are plenty that are quite affordable and economical. Basically, NFTs are that expensive.

Overall, most are able to buy most NFTs for less than $200. As a consequence, the average price of an NFT can vary from as low as $1 to a median price of $900. All in all, the overall cost of an NFT is mainly determined by its rarity.

NFTs have a questionable relationship with the Environment

NFTs utilizes ethereum as it is a popular network. In general, Ethereum utilizes thousands of distributed computers. These energy-intensive riddles need to verify each and every transaction, so electricity is required and needed.

All in all, the viable activity of more Ethereum usage means more energy. This type of power within the network is a challenge for NFTs. In summary, NFTs can be compared to standard printed art and real gas guzzling cars.

The average NFT can vary. However, there is a lot of variety within the NFT market. For example, a piece of printed art can be on average 2.5 kg of extra CO2 emissions. But, the CO2 emissions from minting used for an NFT can be up to 100 times or more higher. So, clearly there is a complicated relationship that NFTs have with the environment.

NFTs are Indestructible and can’t be destroyed

With every piece of NFT data, the information is stored on a blockchain. This information can not be lost.  In summary, this means that each token can’t be destroyed, removed, or copied.

The unique quality of NFTs means that ownership of these tokens is permanent and individual. Therefore, NFT owners or buyers actually possess their NFTs, not the companies that have created them. An NFT is personal, unlike music from the iTunes store.

NFTs are popular with Gamers and in the Video game industry

In summary, NFT coins are widely accepted and used in the gaming industry. Because these tokens solve some of the tech and video game industries. For instance, popular game companies often use NFTs like support as well. NFT coins can help aid and develop drive in-game economies.

However, with NFTs, these characteristics can quickly and conveniently be transferred and used in different games. Therefore the future is full of investment for many overall.