What Are NFTs and Why is Everyone Talking About Them?

NFTs have been a hot topic for quite some time now, and with all of that having been said and now out of the way it is important to note that most people don’t really know all that much about it. While you might know that the full form of NFT is Non Fungible Token, what you might not know is what any of that actually means. One thing to note is that it is closely related to cryptocurrency, in that it is basically something that is stored on the blockchain.

The first thing to understand is that NFTs allow original works of digital art to be stored on the blockchain, and the owners of this art can prove the legitimacy of the piece thanks to its unique digital signature. That might seem frivolous to some, but it has turned into a pretty huge earner for artists that previously had no way of profiting off of their own work. What’s more is that the amount of money that’s changing hands is quite high.

The first half of 2021 alone saw NFTs being sold for a total of $2.5 billion with all things having been considered and taken into account. That’s an almost $14 million increase from the previous year, something that indicates that NFTs are increasing in demand as well. The value of NFTs is quite high, but many people see them as an investment since their worth is currently appreciating over time and that can continue well into the future turning them into quite an excellent opportunity that lots of people are going to be willing to explore.

NFTs have been incorporated into a lot of different areas as well. For example, if you look at the world of gaming you might notice that a lot of games are starting to offer NFT versions of unique items which you can purchase, and the great thing about this is that your unique items wouldn’t just be something that you can use in the game itself. Rather, they would turn into commodities with real world value that you can quite easily sell for a profit in the future.

Sports has also gotten in on things, which makes a lot of sense because many NFTs share characteristics with things like baseball cards. The similarity is that neither baseball cards nor NFTs have any innate value attached to them, but regardless of that they have the potential to become really valuable due to the reason that certain people would be willing to pay that much money for them. Fashion and music are also getting in on NFTs, and they are being used for charity as well.

Whether or not NFTs will become as valuable as people hope they might in the future remains to be seen. One thing that is certain, though, is the fact that they are surging in popularity, and virtually every person in the world who was a large enough following has referred to them at the very least to a certain extent. One should be cautious while investing though because of the fact that this is the sort of thing that could potentially end up tanking in value just like anything else of this nature. Take a look at below infographic for more insights, which comes courtesy of Expensivity.

What Are NFTs and Why is Everyone Talking About Them? - infographic

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