In the past two years alone, the amount of NFT transactions globally has soared to a staggering number. NFT stands for non-fungible token, a digital asset the ownership of which is recorded on a tamper-proof blockchain that cannot be forged. NFTs represent real-world objects and properties. Compared to cryptocurrencies and fiat currencies, each NFT is unique and cannot be exchanged for another or used to purchase items whether.
NFTs may be music files, artworks, memes, memorable video clips, concert tickets, or trading cards. They may even be gaming items, the properties of which can be specified through smart contract rules that govern NFTs to increase or decrease depending on gameplay.
NFTs can be a collectible—some are rarer or more in demand than others, while some objects or products may seem common enough and have a constant supply ready to meet market demands. There is indeed a market for fashion, online games, music and art NFTs. In January 2022 alone, non-fungible token sales reached as high as $500 million.
While anyone may sell NFT collectibles at digital asset marketplaces like OpenSea or Rarible for a fee, some artists are more popular or have superior and more interesting digital items that make their NFTs a lot more expensive. For instance, a few of John Lennon’s personal memorabilia are being sold as NFT collectibles by his son Julian Lennon, such as the digital copy of the handwritten lyrics of “Hey Jude,” which fetched $57,000 in February 2022.
Factors like digital scarcity and unchangeable ownership generally affect the value of NFTs. There is so much online content that people usually do not consider these virtual commodities to have real monetary value, so the rarer the digital item and the more it has historical and cultural relevance, the more valuable it will be.
While NFTs may be copied or downloaded, only the creators own it and may sell it. Ownership may not be manipulated, since NFTs live on the blockchain where records are immutable, and purchasers may always directly verify a product’s authenticity before a sale.
A creator or seller can search for an online NFT marketplace where they can mint NFTs, which is essentially uploading the file to be transformed into an NFT and details pertaining to it. Minting is the online process where the files of the item or collectible is recorded on the blockchain.
Usually, one is required to have cryptocurrency and a digital wallet in order to transact with NFT marketplaces, but some platforms allow the use of credit cards. Almost anyone in the world can create, buy or sell on these websites or applications, provided one can pay the minting fees. Minting fees range from $70 to $300.
NFTs have eliminated some of the hurdles usually met by content creators who desire to monetize their art by serving it directly to the public. Not only is owning an NFT a trend nowadays, but it has also become a status symbol for those who get into it. In any case, it is an actual investment that has become profitable for both collectors and buyers.
Find more: Nft collectibles – Krypto-NFTs