NFTs, or non-fungible tokens, are becoming a big hit. Since last year, their popularity has been growing and you can hear more and more about the sale of digital and non-fungible art. But what it actually is? The easiest way is to consider NFT as a file format. For example, people use jpeg or png as images, which is a file format, to transmit information or values on the Internet. Non-fungible tokens are also a file format that transmits data and value on blockchain networks such as Ethereum.
Why it matters
It definitely pays off to watch growth of these tokens. There are already many ways to get or sell NFTs. The NFT guarantees you the ownership of the digital asset or art it covers. Whether it is an image, an item or, for example, just a profile photo. The NFT was a big hit last year and is not expected to be any different this year. You can also find NFTs in various categories – such as art, digital trading cards, traceability and digital certificates of authenticity, game items, domain names, but also content such as music.
What you can hear
If you’re in cryptocurrencies, you’ve probably heard a few stories about NFTs, such as the possibility of buying an NFT flower for Valentine’s Day or a Doctor Who: Worlds Apart card game. People are more interested in this type of game, because the value that the non-fungible token is able to acquire cannot be disputed by anyone. And if you played Magic The Gathering in your youth, you know the principle of how such digital card games work.
What it could mean
Basically, it could move huge collections of cards, that some of you maybe still have at home, into the digital world. Their value is undeniable and two cards do not necessarily have the same value. And there will definitely be artists, but also traders who will successfully earn on the NFT hype.
What you can do
Given how huge these tokens are and that it will be a trend, it might be worth thinking about finding a favorite game and trying to invest in non-fungible tokens. But remember the golden rule of investment: invest only as much as you can afford to lose.