Non-fungible tokens, known as NFTs, use the blockchain technology of the cryptocurrency, Ethereum, to record sales of digital businesses sold on the Internet. Its name means that it is a “card” that cannot be replaced because it is based on a computer file.
This is a fully digital market which means that assets need not be physical in order to be worth money. NFT can be photos, music, recipes, videos, and any file Digital registered on the blockchain, which makes it unique. With this record it is possible to find out the date of its creation, which buyers have already passed through it and where it is located at the moment.
Buyers are confident that what they buy may be worth much more in several years, or that they can sell it at a higher price than they bought it for, some running into millions of dollars.
The idea of being a unique piece is parallel to the real pieces. But just as it is possible to copy a painting, it is also possible to create copies of an NFT, so investors consider the difference to be very small. As we move into an increasingly digital world, is it normal for the buying and selling of artwork to become entirely digital? Is it the answer to the need for authenticity of this type of work?
In addition to the art world, many uses for NFT have emerged. Sports sells player group posters or enhances impressive plays into animated posters. An example of this type of sales was a poster of Cristiano Ronaldo, which had a value of about $300,000. Other celebrities can be used as party tickets.
At the moment, NFT is overrated, probably because it is a novelty and is directly related to the success of cryptocurrencies. Experts believe that values should decrease over time.
Since it is a kind of market that puts copyright at risk, since whoever buys it does not have any kind of property other than registering the token, it is likely to undergo many changes or even fall into oblivion.
However, the market may continue to rise. The future is unknown and uncertain, so investing in NFT should be well thought out and studied. To invest, try to be aware of the entire market and its implications. If you have artwork that you can convert to NFT, the risk is lower in theory, because the investment price is not very high.
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