Have you heard of NFTs but have no idea what it is? Do you know that you can generate income with NFTs and that they are usually quite large? That’s how it is! There is a topic that has caused a stir in recent weeks, and that has come to stay, a series of digital assets or cryptographic tokens that are changing the way of selling and buying art on the internet.
The success and profitability of NFTs are thanks to their very high exclusivity value, where digital pieces available to everyone are transforme into non-expendable pieces, unique and impossible to exchange or replicate.
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What are NFTs?
Non Fungible Tokens, known by their acronym in English, NFT, are digital assets that do not exist tangibly but acquire unique and irreplaceable properties for a similar one. Something very similar to what happens with the works of art exhibited in museums today, but in this case, in the digital context.
An NFT can be any piece that exists only in digital file format, an image, animation, video, GIF, movie, text file, music album, etc…
NFTs, like cryptocurrency, is stored in the blockchain, a shared and transparent accounting book that allows keeping track of who owns the “x” piece and makes it possible to verify the authenticity of these files.
What does Non-Fungible Token Mean?
The title of Non Fungible Tokens that gives name to the NFTs and is translate into Spanish as a non-fungible token refers to the impossibility of replicating the works and assets that contain the files sold as NFTs, be it an image, song, video, etc…
The term non-expendable means that no substitution or exact copy is allowed. Even if there is a similar piece, it will never reach a value above the original, in case the one transformed into NFT.
Quite the opposite of what would happen with a physical ticket of any amount, for example, 100 euros, since another key in similar conditions could always replace this ticket and not lose its value: it would still represent 100 euros.
How do Nfts Work?
When a person sells an NFT, they would not only sell the file or piece of art it contains but also sell the property title that certifies it as a “unique and original version” and, therefore, the version with the economic value highest.
It solves the most common question of why if a file can be download for free on the internet, it is so expensive to sell it as NFT.
All artists can “tokenize” their works and artistic works and launch them on the NTFS market at auctions and sales, even keeping the copyright but selling the ownership certificates on their assigned pieces.
However, most of the million-dollar and viral NFT sales have been made by prominent media figures, such as Chris Torres (creator of the famous animation Nyan Cat ) and Grimes (musical artist and wife of Elon Musk). Willyrex (popular Spanish Youtuber and streamer) and even the co-founder of Twitter, Jack Dorsey, who sold the first tweet in history in NFT format for 2.6 million dollars.
Does it Make Sense to Buy and Sell Nuts?
Nobody knows, and it depends on how the rise of “crypto-art” and “crypto-collectors” evolves. While some consider NFTs to be just a bubble about to burst. Which can lead to significant monetary losses, others are already fans and think it to be the new art revolution.
Although there is nothing to prove that all these files will be worth what they cost today in a few years, those who buy NFTs argue that most of the great artists of the future will possibly. They have built the foundation of their careers with initially published digital creations on the internet.
If these works’ digital certificate can be acquire initially, it does not matter if they do not have a physical version. Then, of course, the token owner would have an asset of great value and would have made a good investment, but the beginning is a bet so far.
Where can Nfts be Bought and Sold?
Another very common question is where you can buy and sell NFTs, but the reality is that there is no single place. Everything will depend on the NFT itself and the web pages in which they are publish for sale.
- There are websites such as Coin Ranking where you can see NFTs for sale and be redirecte to purchase them.
- MakersPlace or Raible online stores allow you to buy and sell unique digital creations encrypted as NFT.
- Stores or official sites of artists that sell other types of items take advantage of them. Name to join the rise of NFTs and include them in their product catalogue.
To buy or sell NFT, you will need a cryptocurrency wallet to send or receive the Money for the works. Specifically with the Ethereum cryptocurrency.
NFTs, like cryptocurrencies, are store in the blockchain. This shared and transparent accounting book allows keeping track of who owns the “x” piece and makes it possible to verify the authenticity of these files.