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What Are Nfts, The New Digital Investment That Is Sweeping

What Are Nfts, The New Digital Investment That Is Sweeping

Around technology, many revolutions have emerged that have made it possible to know more and more terms related to the digital industry and the latest to join this have been the NFTs. This term may not sound familiar to you, and it is not easy to relate it to its true meaning. We will explain what NFTs, the acronym for Non-Fungible Tokens, already leaves us with a better idea of ​​what it is really about. This term that has begun to gain popularity in social networks is not a game but a complex and challenging to foresee system where investments are taking a presence.

Explaining The NFTs

To understand what NFTs are about, we have to take several things into account. It is a store of value that we cannot touch and, therefore, has a special relationship with bitcoins or the rest of digital currencies that we cannot have with us. These assets that exist only in digital versions can be bought and sold, although only a unique and exclusive version cannot be reproduced. File copies are much simpler than, for example, real pictures, making it more difficult to identify them.

However, NFTs are usually accompanied by a certificate of authenticity that proves that we have the original version and cannot be reproduced again. In this case, collecting and the virtues of having a unique element are different from cryptocurrencies. We went from encountering real coins and tangible art to using digital art and digital currencies. These two mechanisms can lead us to know a world that is too futuristic for some but that, nevertheless, is already a reality.

Virtual Art Of The 21st Century

Although the representations of the NFTs are many, the most common and easy to understand is through an artistic image, which reminds us more of reality. In this case, it would only be present on the screen of the computer, mobile phone or the place where we store it, although it would still be art.

The variety of expressions allows us to find NTFS in the video, audio or other digital mechanisms that we do not have to feel through our fingers. This investment system is reminiscent in many cases of what happens with gold or other precious metals. People give value at the end of the day, and therefore a digital file where there is only a drawing made in Photoshop and simple can also be a unique work of art.

What Makes NFTs Different From Cryptocurrencies

In this case, the main difference is in indivisibility. If we are interested in buying bitcoin, we do not have to get one. Being something digital, it can be divided into millions of portions, and there is no limit to it. This time we cannot do it since the representation and power of the NFT is unique and is recorded in a digital certificate of ownership, such as a house or a flat.

But these, in turn, can have minor points of interest for the artist, ensuring that if the work is sold again in the future, a part of those profits will go back to them. This does coincide with cryptocurrencies because it is new, and as times progress, we will know more about what it means to us as real human beings.

A Precarious Purchase

The value of these NFTs has started to skyrocket, and we have already seen the sale of digital works worth over $ 6 million. However, this price does not assure us that it will cost the same or more in a few years. We have to be aware of the significant risk we run when buying a piece for a minimum and maximum value. There is not yet a broad market that decides what costs the most and what costs the least.

For now, the nicknames of those who have developed the works are often the only element to represent. This has caused renowned singers to sell their art in digital format and the CEO of Twitter himself, who sold his first Tweet for more than two million dollars. As they have done, we could sell our publications and digital creations. Even this article could be a good NFT. However, it is most likely that most of the NFTs that go on sale shortly are worth nothing and do not appreciate over time either.

Also Read: What Is A Digital Trafficker And What Are Its Functions

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