What is the uniqueness of this technology and can NFT be considered a new investment tool?
NFTs are often used to buy and sell digital illustrations.
Recently, the head of the Ukrainian Ministry of Justice, Denis Malyuska, put up his NFT photo collage for sale. And Overpriced, a British apparel brand, sold the hoodie as NFT for £ 19,000. Earlier, the NFT-portrait, created by the robot Sophia, went under the hammer for $ 688 thousand. These reports in the media raise the question: is NFT a new hype or a gold mine?
Let's try to understand the concept. So, NFT (non-fungible token) or “non-fungible token” is a unique asset in the digital world that can be bought and sold like any other property. Alison Manjero, president and co-founder of IT company TQ Tezos, describes the NFT as "a unit of data stored on the blockchain that can represent any unique digital element."
NFTs are commonly used to buy and sell digital illustrations and can take the form of GIFs, tweets, virtual trading cards, images of physical objects, and the like. Digital tokens can be thought of as certificates of ownership of virtual or physical assets. Simply put, NFTs transform digital artwork and other collectibles into one-of-a-kind capital that is easy to trade on the blockchain.
NFT collage by Denis Malyuska "The sea is temporarily unavailable".
NFT may interest, for example, an artist, as it is an additional way to sell a work. In addition, the NFT has a function that allows the author to receive a percentage every time the NFT work is resold. And thanks to the NFT blockchain element, fraud and theft can be avoided.
On the other hand, technology allows fans to financially support their favorite musicians and singers. In addition, thanks to NFT, anyone can try to sell their work. All you need is a digital wallet, a small amount of Ethereum, and an NFT connection. The most popular ones are OpenSea, Mintable, Nifty Gateway, and Rarible. With the help of the service, you need to upload your content, and then, following the instructions, turn it into NFT.
Also, NFTs can work like any other speculative asset. That is, it can be bought with the expectation that the price will rise over time, which will make it possible to make a profit after the sale. Like any other collectible, NFT objects are worth what you are willing to pay for them. For example, columnist for The New York Times Kevin Roos sold a screenshot of an NFT column for $ 560 thousand. You can save a unique image on your computer and hope that someone will pay more for it.
Chris Torres' work called Nyan Cat was sold for $ 590 thousand.
It is believed that NFT investment is based on the big fool theory. According to her, you can make money on anything, because there will always be someone who will pay more than you (that is, a bigger fool).
Some experts refer to the NFT boom as a “bubble” because the NFT series is rapidly losing value. For example, if in the second half of February the average selling price of NFT was $ 4300, then at the beginning of April it fell to $ 1400. This could mean that the NFT boom is slowly fading, analysts say.
According to many experts, if a person does not understand what makes digital art unique, or what market forces can make digital painting rise in price over time, he may suffer investment losses. Samson Moe, chief strategic officer at Blockstream, says the long-term benefits of such an investment are uncertain.
If you are determined to invest in NFT, experts advise you to set a spending limit for yourself and buy exactly as much as you do not mind losing.
NFTs are often used to buy and sell digital illustrations.
Recently, the head of the Ukrainian Ministry of Justice, Denis Malyuska, put up his NFT photo collage for sale. And Overpriced, a British apparel brand, sold the hoodie as NFT for £ 19,000. Earlier, the NFT-portrait, created by the robot Sophia, went under the hammer for $ 688 thousand. These reports in the media raise the question: is NFT a new hype or a gold mine?
Let's try to understand the concept. So, NFT (non-fungible token) or “non-fungible token” is a unique asset in the digital world that can be bought and sold like any other property. Alison Manjero, president and co-founder of IT company TQ Tezos, describes the NFT as "a unit of data stored on the blockchain that can represent any unique digital element."
NFTs are commonly used to buy and sell digital illustrations and can take the form of GIFs, tweets, virtual trading cards, images of physical objects, and the like. Digital tokens can be thought of as certificates of ownership of virtual or physical assets. Simply put, NFTs transform digital artwork and other collectibles into one-of-a-kind capital that is easy to trade on the blockchain.
What motivated the interest in technology?
NFT collage by Denis Malyuska "The sea is temporarily unavailable".
NFT may interest, for example, an artist, as it is an additional way to sell a work. In addition, the NFT has a function that allows the author to receive a percentage every time the NFT work is resold. And thanks to the NFT blockchain element, fraud and theft can be avoided.
On the other hand, technology allows fans to financially support their favorite musicians and singers. In addition, thanks to NFT, anyone can try to sell their work. All you need is a digital wallet, a small amount of Ethereum, and an NFT connection. The most popular ones are OpenSea, Mintable, Nifty Gateway, and Rarible. With the help of the service, you need to upload your content, and then, following the instructions, turn it into NFT.
Also, NFTs can work like any other speculative asset. That is, it can be bought with the expectation that the price will rise over time, which will make it possible to make a profit after the sale. Like any other collectible, NFT objects are worth what you are willing to pay for them. For example, columnist for The New York Times Kevin Roos sold a screenshot of an NFT column for $ 560 thousand. You can save a unique image on your computer and hope that someone will pay more for it.
Is it worth investing in NFT?
Chris Torres' work called Nyan Cat was sold for $ 590 thousand.
It is believed that NFT investment is based on the big fool theory. According to her, you can make money on anything, because there will always be someone who will pay more than you (that is, a bigger fool).
Some experts refer to the NFT boom as a “bubble” because the NFT series is rapidly losing value. For example, if in the second half of February the average selling price of NFT was $ 4300, then at the beginning of April it fell to $ 1400. This could mean that the NFT boom is slowly fading, analysts say.
According to many experts, if a person does not understand what makes digital art unique, or what market forces can make digital painting rise in price over time, he may suffer investment losses. Samson Moe, chief strategic officer at Blockstream, says the long-term benefits of such an investment are uncertain.
If you are determined to invest in NFT, experts advise you to set a spending limit for yourself and buy exactly as much as you do not mind losing.
