Over the past years, you’ve probably seen everyone chatting or talking about NFTs. Indeed, they’ve been through quite a few developments, and believe it or not, even celebrities spend a fortune on non-fungible tokens, not to mention those creating their own.
But then, what’s with all this NFT craze? Why’s everyone buying pictures of apes? What do they actually mean?
The NFT madness explained
Digital work comes with many misconceptions, but somehow, this industry took off. What counts as digital artwork? Simply put, pretty much everything works, from emojis and music to random sounds and animations.
Sure, you can save any picture or NFT on your computer or device without too much hassle. You own it for free, but that’s only in your mind. The blockchain will recognize the original owner. There is no evidence whatsoever that you own it. Someone searching on the blockchain will find the real owner.
Such tokens are quite varied, and apart from regular people, celebrities also launch their own. People are paying a fortune for such tokens, and a brief search over the news will give you some incredible results.
A digital professional known as Beeple sold most of his work for nearly $70 million. That’s more than enough for a few generations of people in his family to never have to work. Former Twitter CEO Jack Dorsey has managed to sell his first tweet. It was sold as an NFT and went for nearly $3 million.
As you can see, anything online can count or can be turned into an NFT, including tweets.
To help you get an idea of why NFTs are so popular, think about sports trading cards. In fact, the NBA is even selling short videos of iconic moments, so any fan could buy something that spectacular. The program, known as NBA Top Shop, made more than $230 million this way.
These numbers are the main factors behind this modern NFT hysteria.
Indeed, owning some NFTs may sound cool, but the truth is many of them are not worth a fortune. Unless you’re a celebrity, chances are your work will barely be worth a takeaway cappuccino. Your Twitter rants won’t help you retire early, either.
As for any rule out there, you can find some exceptions, and the NFT industry is no different. People who make millions out of NFTs are the actual exceptions. To most others, NFTs look like a get rich quick scheme. It may work, but chances are you’ll hit a dead end if you see it this way.
On the other hand, NFTs are also seen as investments. It’s hard to tell whether they’ll make you a millionaire one day or they’ll simply fade away, but to many, it’s worth a try. Like any other investment, it comes with some risks.
At the same time, there are clearly a few misconceptions about this industry too.
Misconceptions
NFTs are just some pictures
Most people assume the NFT industry is a JPEG industry, simple as that. It’s not hard to see why. Indeed, many of today’s pieces of art consist of actual pictures. These are the most popular NFTs at the moment. They fetch more money than other forms of art, too, so they’re more common in today’s news.
In reality, there are many applications that have been turned into NFTs. The music industry has seriously seen a wave of NFT conversions. There are official platforms out there, as well as artists like 3Lau or The Weekend, offering exclusive NFTs to their fans.
The gaming industry has experienced the exact same level of growth lately.
Screenshotting or saving an NFT is as good as owning it
On a computer, you can right-click on an image and save it. There you go, you have that NFT for free. If you can’t save it, you can screenshot it and benefit from pretty much the same effect. In reality, saving a picture is like taking a photo in an art gallery.
You have a copy, but the original is designed and owned by someone else.
Owning the NFT implies owning a certificate of authenticity, too. Even if two pictures look identical, in reality, they’re different files, so they’ll be treated accordingly. NFT owners can gain rewards cryptocurrency and even sell their NFTs for more money.
NFTs are overpriced
Some NFTs cost millions, others cost cents. There are more reasons wherefore some NFTs cost that much. Most of them don’t.
Before understanding prices, it pays off becoming familiar with the fact that NFTs are not easily available on secondary marketplaces. You can get an NFT from a secondary market or get it minted. Minting NFTs will cost a fortune, but there are times when it could be free.
The price of an NFT is also given by the demand. Famous projects, such as those from celebrities, will obviously fetch higher prices. It’s just like in the retail industry. Products in demand from quality brands will cost more.
NFTs are all about cash
There are people out there who made a fortune out of buying and reselling NFTs. While it works for some, this isn’t a get-rich-quick scheme. Different NFTs have different utilities, depending on the projects. Some NFTs indicate support for mental health problems or perhaps inclusivity.
NFTs will also include you in a community. No matter what NFTs you’re after, you’ll realize big NFTs have a solid following on various channels.
Owning some NFTs will provide a feeling of belonging and support, a new family of people who share common goals and interests.
Bottom line, NFTs can easily be misinterpreted, but that’s mainly because people often fail to do their homework and actually understand the industry. Jumping to conclusions is simply easier. In reality, the NFT industry keeps going up, and chances are it won’t stop too soon, but grow instead.
It’s not a get-rich-quick scheme, despite looking like it at times. When you see some simple designs fetching millions, you’re probably thinking you can get in there, too. It works for some, indeed, but it takes a deeper understanding of the industry to be successful with NFTs.
