Unraveling the hype behind cryptocurrency and NFTs

For this year’s last article, we want to leave you with some alternative forms of investments that you may want to explore. The internet’s recently been exploding about?cryptocurrency?and?NFTs. If you haven’t joined the bandwagon due to the complexities & risks they come along with, we’re here to equip you with easy-to-digest, useful information!????

About?4.3 million Filipinos, or 4% of the total population, own cryptocurrency?as of today. Meanwhile,?32% of FIlipino internet users have disclosed that they possess NFTs, making the country rise to the top rank of NFT adoption among 20 countries according to a recent survey.

These figures represent the openness of Pinoys to exploring new investment channels.?

But, you may ask:?What do these two things really mean and how do they work????

Cryptocurrency aka “crypto” defined

Not governed by any form of central bank, cryptocurrencies are simply?virtual currencies that are powered by blockchain technology?wherein users exchange their money for virtual coins that have corresponding values.?

Depending on the performance of the market, the values of coins can either skyrocket or plunge due to their volatility.?

Before you make any transactions and investments that involve cryptocurrency, you have to know the risks involved. Numerous financial experts have warned people to be extremely cautious and vigilant about crypto trading and only put up what they can afford to lose.?

There has also been a previous report of a?scam involving the squid coin (inspired by the KDrama “Squid Game”) where coin developers did the?rug pull?where the scammers ran off with the investors’ money.

Non-fungible tokens aka “NFTs” defined

Non-fungible tokens (NFTs), on the other hand, are cryptographic assets that can be represented in various forms on a blockchain possessing?unique identification codes and metadata?that cannot be copied, substituted, or divided. In layman terms, these are non-replaceable distinct items that can only be owned by one individual.

The first NFT ever created was in 2014 in the form of “quantum.” At that time, it didn’t get much traction.?

The hype surrounding NFTs only began in early 2021.?About 600,000 units were sold in January?which was?98% higher than the 11,000 sold in January 2020.?

First NFT artwork entitled “Everydays: The First 5000 Days” sold at a whopping USD 69-M!

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Twitter founder Jack Dorsey’s first tweet that dates back to 2006 was sold at USD 2.9-M.

What about Axie Infinity

Does everything seem interesting so far? We still have a few more things to share before we wrap it up so you may want to take a breather first.

One of which is the NFT-based online video game called?“Axie Infinity”?that has lured many Filipinos with its?play-to-earn?system.??

The game uses ethereum-based cryptocurrency wherein users can convert the Axie Infinity Shards and Spell Love Potion tokens that they’ve earned from their battles into cash.

That’s a lot of jargon and information to digest but if you’d like to learn more about this groundbreaking game, you can read more about it in?this article.?

Beyond the hype

As your financial buddy, SAVii wants to make sure that you?‘DYOR’?or?do your own research?before putting out your hard-earned money in investment channels as volatile as cryptocurrency.?

There are successful ordinary people such as?John Aaron Ramos, an avid Axie Infinity player, who was able to buy two houses from his profits. On the flip side, there are also people who have lost huge amounts of money.?

In SAVii’s upcoming blogs, we’ll let you know how to begin trading in the world of crypto. We know you want to hop in on the trend but hold your horses first. We want you to join the bandwagon with much info on your belt.?

With that, we wish you a happy, safe, and blessed new year’s celebration! We’ll catch you soon, buddy???