Why Is Everyone Investing in NFT?
Non-fungible tokens, or NFTs, have become an instant investing phenomenon, with sales of $ 60 million on Tuesday, more than total sales for all of 2020. NFT is a type of cryptographic token that is used to create unique digital media and therefore can be collected. whether it’s a GIF or even a sporting event. If you’re wondering why everyone suddenly forgot how to take a simple screenshot, or is otherwise confused by it, you are not alone.
What is NFT?
Using blockchain technology, NFT stands for the official copy of digital media that artists, musicians or sports organizations can then sell to make money from content that would otherwise be cheap or free. NFTs are different from cryptocurrencies because they are not fungible – each one is unique.
If you buy NFT through the cryptoasset market, you can store it in your digital wallet or list it for sale on the market. When sold, all computers on a decentralized network record the transaction in a shared ledger, which is essentially a certificate of authenticity that cannot be altered or erased.
NFTs have a wide range of uses including collectible sports cards , digital art, and virtual real estate . According to Yahoo, brands such as Nike , Louis Vuitton, and the NBA have already started building NFT-based assets, and the NBA has launched a dedicated collectibles site called NBA Top Shot . Last week, artist Chris Torres sold a one-of-a-kind version of Nyan Cat , the popular flying cat meme with a Pop-Tart body leaving a rainbow trail, for the equivalent of roughly $ 580,000, according to the New York Times. … Justin Royland of Rick and Morty also joined the NFT .
Why would anyone spend money on this?
It may seem odd to buy a “genuine” version of something that can be easily captured with a screenshot from your desktop, but it’s easy to overlook the emotional value of collecting, especially when it comes to original art. Part of the appeal is owning an authentic item created by an artist you like and the bragging rights that it gives. Basically, it’s not much different from owning an original Andy Warhol painting that you can display, sell, or share – it’s just digital. Additionally, crypto art is finally solving the problem of paying artists, as creators can program these assets to pay them royalties every time a collectible is sold.
Moreover – and perhaps more importantly (if we explain the renewed interest in NFTs that has been around for many years) – people increasingly view these digital assets as speculative investments as they can be bought and sold in online markets (NBA Ranking Top A snapshot of the digital collectible card of basketball star LeBron James was recently sold , for example, for $ 100,000 ).
The rise in recreational investment during the pandemic is probably also a factor: most of these exchanges will of course accept cryptocurrencies, which satisfies the demand of individual investors who have cryptocurrency reserves and are willing to spend on something that is both fun and beneficial. … the opportunity to make more money later. It is not yet clear if this interest will continue to support the half-million dollar estimate of the Flying Cat GIF.