NFT is a digital certificate, established via a connection to the blockchain, that defines originality and uniqueness to digital assets. A meaning to “Non-fungible Token,” NFTs have attracted attention after millions of dollars have been used to buy such assets on the Internet. For example, a digital Ape, made of pixels sold for exactly 1.5 million dollars (420 Ethereum’s for the as of today price of 1 ETH = $3,720).
An NFT attached to any digital item – an image, photo, video, music, message, social network post, etc. – makes that item unique to the world. – makes that item unique in the world, creating scarcity around the item and opening space for a market to take hold, involving collectors and investors interested in investing real money in the acquisition of digital works and assets. You might be asking yourself: how is this possible? The term for creating an NFT is known as “minting,” and when you mint a token (an image, video, music, etc.) you create a smart contract with the blockchain of the cryptocurrency in matter. The contract states that given the “hash code” provided after the mint, that token is not fungible anymore, it is unique and along those lines; it is scarce. Many platforms prefer to use Ethereum, the most known cryptocurrency in terms of NFTs, but others would prefer to use Cardano or Solana due to low transaction fees compared to Ethereum.
The bigger picture here is, the cryptocurrency environment has the ultimate goal to decentralize—break centralized power and distribute it in a healthy fashion. It also diminishes bureaucracy as huge transactions can happen at any given time without any logistical problem. It is shaping the world to eliminate those remaining steps for the 100% online step. There is one sociological model known as “Laggard’s Technological Adoption Curve” which measures the progressive adoption of technology.
Absolutely whoever is having exposure to the NFT market right now, it certainly is at the “innovators” stage. You might be thinking, “Some random pixel Ape was sold for $1.5 million at the earliest stage of the market, how is that possible?” and the answer to that question is: extraordinarily rich people. There are many tax incentives for art buyers, and NFTs qualify at that sphere, so in simple terms, it is a way of rich people pay less taxes. That is not the absolute only reason, there are uncountable projects in progress around the NFT world, and very soon we will see movie scenes or even TikTok videos being commercialized through these marketplaces, and you will be able to purchase these moments and say that they are yours! A hint: if you ever be in possession of such, congratulations. You just became very wealthy.
The crypto universe is crazy, filled with emotions in such a fast-paced fashion. Afterall, knowledge is key. To truly be successful at this universe, you must understand the concepts, the projects and be up to date with news; one spark can change everything, and you must be one of the first ones to see it. The Laggard’s curve displays to you that whoever is an early adopter, has the biggest chances to acquire some rare NFTs. It is important to know that there are millions of people that are trying to profit from FOMO buyers—the famous “fear of missing out” is extremely present in crypto.
This universe is simple, whoever enters early will benefit the most, whoever enters early and is educated will be an NFT king in the future. With that said, be patient and calm, educate yourself the most and do not FOMO in. Try not to buy too many NFT, punks!