This is the era of digital currency! An age where we have discovered the power of technology, especially blockchain when it comes to investing in cryptocurrencies and other digital assets. One such digital asset is NFTs (non-fungible token) that is so peculiar in nature, making it irreplaceable with any other tokens. NFTs allow their owners to use unique assets that are kept digitally.
These assets can be in the form of art or music that are stored digitally. Sounds funny, right? But do not worry as they are secured and kept just like how you purchased them without any duplicity, you can be rest assured that they are maintained safe. NFTs are stored on blockchain and as with recent developments on blockchain technology, more investors are ready to purchase them and share their stories of buying NFTs with the world.
You must want to know why everyone is talking about NFTs and if you should invest in them. If so, let us get into it.
Uniqueness
Unlike cryptocurrencies like Bitcoin and Ethereum that can be traded for another Bitcoin or Ethereum currency, one NFT coin cannot be traded for another one as each of them possesses a separate set of value and information. If you trade the token, you will get something completely different than what you purchased in the beginning.
Usage
The way people can use it makes NFTs extremely popular as they get the opportunity to buy, sell, or exchange them. It is not restricted to only art or music as you might have heard or seen before, but you can also purchase or exchange anything else that is presented digitally. As mentioned above, NFTs are unique, and they cannot be replaced by any other digital asset of the same kind.
Value
As these digital assets are secured on blockchain, they cannot be accessed or deleted by anyone apart from the owner. Along with that the value of NFTs is not determined by the government or any single entity, they are valued by the market conditions such as geopolitics, stock market, inflation, interest rates etc. The investors can sell or trade their NFTs like any other digital assets.
Ownership
Owning NFTs requires a lot of clarification as its buying process is still not standardized across all the NFTs platforms. Most of the NFTs are created on the Ethereum blockchain and many investors trust the security provided on the blockchain of Ethereum especially when they want to purchase or own NFTs. Ownership is one area that makes NFTs unclear to vast audiences as the technology is yet to develop with a scope to make the ownership process simpler and streamlined.
Investment
One of the major reasons behind the popularity of NFTs is that they are a source of investment as they come with more potential for higher returns than any other digital assets. There is a lot more scope for improvement for NFTs, but investors do see a growth in the market due to the development of NFTs.
Conclusion
As of now, NFTs are enjoying surging popularity. More investors believe their concept and purpose, motivating more people to understand how NFTs work, their current use cases, and copyright concerns.
