Welcome back dear traders and investors!
In today's post I wanted to talk about a new discovery entwined in the crypto world, I mean what many experts and computer analysts have dubbed "NFT Boom". Which gives us a new and innovative connotation, since, at present, still many people do not really know what it is, how they can buy them, what their project is, what algorithm they are based on and what their profitability is! No you worry! your doubts -I promise you- will be answered with a good sense of detail and analysis.
What is an NFT?
NFT stands for non-fungible token.
In economics, a fungible asset is something with units that can be readily interchanged - like money.
With money, you can swap a £10 note for two £5 notes and it will have the same value.
However, if something is non-fungible, this is impossible - it means it has unique properties so it cannot be interchanged with something else.
It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be the one original painting.
NFTs are "one-of-a-kind" assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own.
The digital tokens can be thought of as certificates of ownership for virtual or physical assets
Information source: BBC https://www.bbc.com/news/topics/cyd7z4rvdm3t/cryptocurrency
Six essential factors in NFTs:
1. NFTs are born as marketable and collectible
It all starts in any given week, in which a new market open to economic possibilities is born through blockchain technology based on the Ethereum system and network. It was then about the creation and incorporation of assets and tokens (not currencies) that function as commercial bubbles with powerful explosion and growth power.
2. The NFT in its beginning like cryptocurrencies were given away
You are right. Some of them were special gifts for specialized purchases, prizes, raffles, contests, bets ... Of course, at that time the revolution and dominance of the NFT was not so publicly known. Shortly after, it began to become a kind of "fashion" among artists, musicians and celebrities who used this financial strategy to generate funds against the new pandemic outbreaks of the covid-19.
3. The NFTs have achieved a positive and pleasant vibe in the market, in all types of public
Despite the traditionalist economic criticism; NFTs are a valuable and multifunctional strategy, in the short term they have changed the market, the digital economy and public opinion of the Ethereum network. The projects are educational and the NFT-like tokens are hilarious too, like the DOGE cryptocurrency.
4. It is unknown if it is a fashion or if it came to stay
Taking advantage of the commercial growth of crypto, NFTs have joined the technologies developed by the blockchain system with the greatest worldwide popularity. So much so that even Coinmarketcap has listed several of them so that we can read their projects, meet the group behind the token, news and much more. But we still do not know for sure if this "fashion" is here to stay or if it is just a financial instrument. However, at a technological level, it is known that the vitality of NFTs will be quite long-lived.
5. It goes hand in hand with the Blockchain and Crypto system
"Believing in NFTs is a step to believing in cryptocurrencies" Any connoisseur of the blockchain system would be very sure that believing in NFT is only the first step to believing -formally and public- in cryptocurrencies.
6. The NFTs show good results, capitalization and market volume
Currently it is an erotic and attractive commercial targuet for investors, as well as for collectors, that is, a fusion between both. Acquiring pieces of digital art, content, samples with blockchain technology, is changing everything.
More info in: https://coinmarketcap.com/nfts/
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