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NFT: what is it, and is it worth investing in it?

You have many non-traditional investment options today when you are looking for money. One of the fun ways is becoming a member of a reliable casino like 7Slots and placing real money wagers on the games it offers. You can also opt to go with NFT, an investment option we will look at in detail below to decide whether it is worth spending your hard-earned cash or you will go with something else.

What Is NFT?

NFT generally stands for a non-fungible token. Non-fungible, in simple terms, is something unique that is irreplaceable. NFTS can be anything digital from music, drawings, your brain downloaded and converted into an AL, or any other collectibles and art presentations. However, there has been a lot of buzz around using technology to sell digital art.

How Do NFTs Work?

NFTs are part of the Ethereum blockchain at a very high level. However, note that other blockchains have also implemented their versions of the non-fungibles. Ethereum is a kind of cryptocurrency such as bitcoin or dogecoin, but it also keeps track of who is trading or holding NFT. Individuals can sell and buy real-life collectibles in the form of NFTs. For some non-fungible tokens, you can get ownership as well as copyright information of the items. You generally trade the NFTs online through cryptocurrencies operating under a similar code. For instance, if you purchase the token, you will store it in a wallet the same way you would crypto.

NFTs are all about tokenizing artwork offering uniqueness, hence creating digital ownership certificates that permit the selling and buying of unique items. All transactions involving NFTs are usually recorded on a public ledger that is available for anyone who wants to view. It allows people to view the history of ownership of any item. NFTs offer an investment opportunity. However, unlike physical art, it’s about the ability to attract the highest bids during a sale. It’s worth the investment if you sell an item for a higher price than you bought it since you will have made a profit. NFTs became quite popular when some people were making millions from digital items. Examples of some of the most expensive non-fungible tokens ever sold are

  • $69. 3 Million for Everyday: The First 5000 Days- A digital work from Mike Winkelmann, an American graphic designer, is among the most costly NFTs sold. It is a collage of Beeple’s earlier artwork. It was purchased for 69.3 million at a Christie’s sale auction by Metakovan, an NFT investor.
  • $ 52.7 Million for Clock- This depicts a dynamic timer that counts the number of days Julian Assange spent in prison. The founder of WikiLeaks was involved in a highly controversial case where he was facing extradition from Britain to America on various espionage charges and 175 years behind bars. Pak, a digital artist, created the item. He collaborated with Assange in a bid to support his legal costs. It was auctioned in 2022 to AssangeDAO, a decentralized organization established to crowdfund the sale.
  • $28.9 Million for Human One- Another record-breaking NFT is Human One, Which fetched 28.9 million dollars. It is one of the first physical arts by Beeple. It was auctioned in 2021 at Christie’s. It is a 3D moving sculpture with four digital screens displaying an endless video of an astronaut’s journey at different times of the day.
  • $23.7 Million For CryptoPunk #5822- Another popular NFT project is CryptoPunk #5822, which sold for 8,000 ETH translating to 23.7 million dollars to the CEO of a blockchain technology startup. It is made from one of the rarest unknown editions, with only nine of them in the entire collection, making it extra special. It also belongs to one of the 333 created with a bandana.
  • $ 11.75 Million for CryptoPunk#7523- Another valuable NFT is CryptoPunk #7523. It was auctioned in 2021 for 11.75 million dollars. It is also one of the scarce alien editions and the only alien to wear a mask inspired by the COVID pandemic. It is one of the features that the buyer found appealing.

Should You Invest in NFT?

Given that NFT works like other physical artwork, you should treat digital art like any investment opportunity. Ensure you do your homework well, especially when confirming the value of digital art you are buying and whether it has the potential to grow. Proper research is mandatory if you do not want to end up with losses. Remember that, like other markets, the success of NFTs also depends on supply and demand. When there is less demand, the item’s value will probably reduce. Limited supply, on the other hand, often means the value of the NFT will grow. It’s also advisable to steer off what is hot at the moment seeing that NFT is still a new form of asset. It’s better to look for a wide variety of assets that can help to spread risks. This way, some might fail, and others may succeed so that you do not end up with 100% losses.

Closing Remarks

A few people have made millions trading NFTs, making them a lucrative investment option. However, it is crucial to be very careful when investing in non-fungible tokens so you do not lose all your money. Reading the article above can give you a guideline you can use when you want to invest in NFT.

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