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What are NFTs and Why Have They Become so Popular

In recent years, NFTs have become really popular, digital collectibles that promise to increase their output value rapidly.

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Thus, due to the promise of investing money in them, many collectors are entering this fever of digital collecting on a large scale.

Many who enter this market do not fully understand what NFTs are and why they have become so popular. Below we promise to explain everything about NFTs in a simple and easy way.

What are NFTs?

NFT stands for Non-Fungible Token.

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A Token, usually translated as “chip”, is a unit of value issued by a private entity, such as casino chips, which only have value inside the casino, but not outside it.

While non-expendable goods, according to international law, are all those goods or objects that cannot be replaced. I mean, they are unique.

For example, a consumable good would be a 20 dollar bill, you can easily find another one. A non-expendable good would be the Mona Lisa, there is only one authentic.

So, in a nutshell, NFTs are digital items of which there is only one. And, therefore, owning it makes us the owner of something exclusive and collectible.

What gives them value?

The idea behind NFTs is to transfer to digital goods the narrative of value that, for centuries, we have had related to physical goods.

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That is, assume that the same thing that gives value to a physical good applies to digital goods.

Therefore, it is to think that a unique Token of, for example, the popular Nyan Cat GIF is worth 590 thousand dollars for only one existing. Does it seem excessive to you? Well that was just the price at which it was sold .

And that does not mean that the rest of us mortals are prohibited from continuing to use the Nyan Cat GIF, the GIFs of the feline are still on the web and are used millions of times a day.

What makes the Nyan Cat NFT that was sold unique is that it is associated with blockchain technology, the same one that allows the use of cryptocurrencies.

Most NFTs are associated with the Ethereum network, which is used to assign them a kind of unique asset certificate. So even though many NFTs are versions of very popular GIFs, images or videos, they are not the same, they are unique.

Being related to Ethereum also makes it easier to sell and buy them through associated wallets -such as the popular MyEtherWallet, Mist or MetaMask- with this blockchain.

How does an NFT work?

Thanks to being associated with a blockchain, the metadata of an NFT is unmodifiable, and allows us to know that it is authentic, as well as all the times it has been sold, how much, as well as its author.

Precisely for this reason, in the last two years, many artists from the most different disciplines have entered this market. They know that their name sells and their work is collectible.

In the beginning, those who took the most advantage of the NFT fever were digital artists, then illustrators, even Jimmy Fallon joined the wave, and more recently the big movie studios are launching NFTs of their most important releases.

Therefore, the NFTs that may be better sellers are those that are linked to some celebrity (even digital like Nyan Cat) or some memorable moment.

It’s also a good market for emerging artists who, in addition to making a button or sticker with a clever illustration that they can only sell at a convention, can now sell their work through NFTs.

Thus, although, in theory, everyone can sell their own NFTs ( NFTs from tweets have even been sold), not everyone has a potential market to sell their digital collectibles.

Why buy them?

In reality, NFTs are just an evolution of collecting, so their potential customers are people who currently collect physical goods.

The idea behind an NFT is that, like the collector of postage stamps, its buyer will acquire these tokens for the simple pleasure of having a collection or, as it also happens, to speculate on the possibility that a non-fungible good will rise in price. in the short, medium or long term, and can have a profit.

That is why it was not surprising that this year, Warner gave away NFTs of DC Comics superheroes at the DC FanDome event, appealing to the fact that comic book fans are an attractive audience for all kinds of collecting.

Similarly, the rock band KISS, which has one of the fandoms most linked to the collection of products related to the group, announced that it will launch NFTs.

Not to mention, many iconic moment photographers are taking their work to NFTs, knowing they can make ancillary profits without losing the rights to their images.

So, if you are one of the many lovers of collecting, or you just want to speculate with the possibility of earning a lot of money, there is still time to enter this new digital market in which everything is marketable, as long as it is “unique”. and different”.

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George Philip
George Philip
George is a tech-savvy professional and enthusiast. He writes content that gives you the insights and information you need to understand how tech is impacting your life, workplace, and world. You may contact him via his email - [email protected]


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