NFTs; The Real Deal In 2022

Introduction

If you've been keeping your ears to the ground in the crypto industry and financial market, you've probably heard a thousand times about NFTs and NFT marketplaces. The NFT market is currently worth a massive 27 billion dollars, and there are no signs of it slowing down.

Just like that, there has been an increase in references of NFT initiatives and NFT Marketplaces particularly since the beginning of 2020.?The high profits produced through the selling of NFTs are enough to lure anyone searching for knowledge as regards this investment, especially with inflation on the rise.?

Understanding NFT

For someone trying to look in from the outside world, the millions of dollars spent on basic cartoony computer images is strange. Yet the massive results are mouthwatering.

So as a result, before diving into the various marketplaces and top artists, it's important to clear your curiosity by first grasping what NFTs are and why they're so popular in the cryptocurrency industry.

What are NFTs?

In a language we can all understand, NFT– Non-Fungible Token is simply “the ownership of traceable Properties online.” It can be anything digital, including films, music, highlights from sporting events, online jokes, Gifs, collectibles, articles, digital art, drawings, and wait for it – Your Tweets! Yes, you read that correctly – Your tweet.?

Why are NFTs valuable?

This is an important question to ask because NFTs can command crazy prices, some of which are warranted, while others are simply 3D or 2D photographs stored on the lockchain.

So what makes them valuable??

Utility

Aside from their use in the game world, certain NFTs provide the bearer with a real-world benefit. For example, a well-known musician may issue an NFT that grants the bearer VIP admission to all of the artist's future shows. It might also be for a monthly supper, and this makes the NFT a popular property to own in either event.

We have seen countless frauds where people send tickets to a music festival via the internet because there's no way to verify the ticket's authenticity. If an electronic ticket is in the form of an NFT, a smart contract might be used to generate the ticket, receive money, and send it once it has been verified as valid.?

Owner's History

Buying a $5000 suit from a supreme retailer might be a good investment, but if you were to purchase the same jacket, which had previously been worn by a renowned person, the jacket's value could skyrocket to hundreds of thousands of dollars.?

This simply means the price increase in this situation is due to the previous OWNER'S HISTORY. NFTs connected with well-known musicians or major corporations are typically expensive. When the former owner of an NFT was a well-known figure, the price rose as well.

Rarity

One unique thing about NFT is that no two NFTs are exactly alike. One cannot be substituted for another. Nothing has equivalent value with NON-FUNGIBLE TOKENS. With built-in authentication technology, the NFT technology allows consumers to possess something absolutely unique.

For example, if you exchange one bitcoin for another, you will obtain the same result. However, if you swap one NFT for another, you'll get something completely different than what you had before –Yeah!

Take, for instance, the crypto kitties collection. They all have unique identifiers and features which distinguish them but a piece of art would cost far more than a crypto kitty.

Liquidity

NFTs have a higher value since they are more liquid. Many investors prefer NFTs developed on the Ethereum blockchain (ERC-standard NFTs) to those built off-chain for this reason. They are simple to purchase with Ethereum, which reduces the danger of retaining them.

To summarize, the larger the liquidity, the more people who are willing to buy. The higher the asset's value, the better.

Present and Future Value

One of the most obvious advantages of purchasing art is that it allows you to financially support artists you enjoy, and this is also true with NTFs which can be in the form of Telegram stickers. When you buy an NFT, You obtain some basic usage rights, such as the option to publish the image online or use it as your Display picture. There's also the bragging rights of owning the work, which is backed up by a blockchain entry.

Similar to any other speculative asset that you buy, NFTs can function and increase in value over time so that you can resell it for a profit.?

How can you become the owner of a property on the internet?

NFTs are described as a one of a kind, unique, a digital asset that cannot be replaced with something else and a unique number that cannot be altered is permanently affixed to the property as proof of ownership.??

This number can only be traced back to the owner. So, How can you become the owner of a property on the internet?

Forms of?NTF Ownership

As it is traceable to only the owner, you might want to ask – how do I own a property online?

There are two forms of NFT ownership.

1. Ownership of a digital piece like art, content, historical objects, or other things that can be uploaded online.?For Instance, Jack Dorsey, the founder of Twitter, sold his first tweet for a whopping sum of $2.9 million, so you can tell that it's a real deal. For this online ownership, upload any of these to a specific platform online and turn it into an NFT.?

You've probably seen NFT photographs of trees, monkeys, sketches, and other artworks. The owners of these NFTs uploaded the pictures they had sketched and turned them into an NFT.

2. Ownership of real-world property. For instance, you take a picture of an art you have in its physical possession, upload it to a specific platform, as an NFT. As the art owner, you can decide to sell the digital photo together with the physical art in your possession.

Take home

So,?you might still be wondering –why would someone pay millions of dollars for a digital image of something they could easily copy, download, or screenshot off the internet for free? The simple answer to that question is that NFT gives the buyer ownership of the original item and contains built-in validation that serves as proof of ownership.

But, before you go out and buy one, make sure you use the markers I stated before to assess its current and future value. Nobody wants to be stuck with a pixelated asset that has no value.?

The NFT field is expanding, and we'll almost certainly witness a major explosion as the year progresses into 2022.

So, what are your thoughts on investing in NFT?