Irreplaceable digital signs .. a multi-billion dollar market

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Interchangeable digital signs (NFT) caused quite a stir in 2021 due to the big money and big names involved in it. About a week ago, Bloomberg News and Financial Information Services reported that the size of the fixed tokens market had exceeded $ 40 billion, much to everyone’s surprise, as the popularity of these tokens is steadily increasing as the year progresses. 2022.

American digital artist Pebble made a record $ 69 million in digital art sales in March 2021, and popular online memes are sold as immutable ground, including ‘Disaster Girl and side-eyed cloe clem’ and ‘Doge’. .

Even famous Bollywood stars like Amitabh Bachchan could not stop themselves from joining this fury.

In light of this confusion, we seek here to clarify much about these symbols.

NFT or Non-Fungible Tokens are unique, non-interchangeable digital assets based on blockchain technology. In economics, an interchangeable item is something that can be exchanged for something similar, e.g. a $ 10 bill that can be exchanged for two $ 5 bills each, or one bitcoin can be exchanged for another bitcoin.

But NFTs are not replaceable, as they have unique properties, and therefore can not be replaced by anything else. And it’s not just about the digital arts, any digital asset can be promoted as an NFT, and it could be a music track, a tweet, a meme, a video game or a photo.

But now the question arises: “Why would people buy something that could be repeated endlessly for such fantastic sums of money?” Well, yes, it’s true, all of these digital files can still be used and shared indefinitely, but with NFTs, these digital files are encrypted and their digital ownership certificate is created. These certificates may come with a contract to give the owner a portion of each future sale of this digital code.

But how do NFTs work? (NFT) are digital tokens stored in the blockchain register. Unlike other databases, blockchain is stored on thousands of computers globally and when any data is stored in the blockchain, it is shared with all computers in the reliability of irreplaceable arguments.

These digital lands can be bought and sold as regular collections, their price is determined by market demand and the original digital asset is encrypted and its digital property is created. Take the Mona Lisa for example, there is only one original painting, but you can find thousands of copies of it online and in the physical world. Non-interchangeable signs are also such, the individual who buys an NFT receives his digital ownership certificate.

There are markets for buying and selling non-exchangeable tokens, and most of these markets accept Ethereum as most NFTs are tokens based on Ethereum technology. You will need to link your MetaMask portfolio (Ethereum portfolio) to the NFT market of your choice, as each market operates differently and offers different properties.

You will also need to auction in most NFT markets, however some markets function as exchanges. The only drawback to buying fixed tokens from their primary market is that you can not easily estimate the demand, but some NFTs can sell for 5 times their starting price right after they go on sale.

Irreplaceable signs have turned into a new craze and gained so much popularity last year that many celebrities, rare memes and big companies like Coca-Cola have turned a $ 100 million market into a $ 22 billion market. dollars within a year. NFTs have also invaded the art world, causing most of the change in the sector. One unique digital artwork by Pebble sold for a record $ 69 million and two other works of art sold for more than $ 6 million.

But the most expensive NFT of 2021 was “The Merge,” which digital artist Buck sold for $ 91.8 million. Can it be trusted? These large sums of money snatched the headlines and soon NFTs spread across social media.

Another reason for the growing popularity of NFTs is the COVID-19 pandemic. With people staying inside for long periods of time, they read and shared more information about NFTs, and some of the people who were lucky enough to keep their jobs during the blockade saved a lot of money that would otherwise be spent on luxury. And so I found them all before a big investment in the form of NFTs.

The great controversy over the NFTs even made them famous. Some experts say we are in a bubble that could burst at any time. There is another debate about the harmful effects of NFTs on the climate. Creating NFTs and blockchain maintenance uses a lot of energy, hence the issue of climate change.

Non-interchangeable signs are the modern solution for traditional collections. The NFT market is booming in the US while it is still in its infancy in India. People are now starting to learn about NFTs, but it is still too early because most people still do not fully understand cryptocurrency.

There are also some risks associated with it because it is an unregulated market and experts believe that NFTs are nothing more than a bubble, although increasing knowledge about NFTs will eliminate these risks. Investing in NFT means creating a future portfolio and you need to make wise decisions before investing in them in the same way as before investing elsewhere.

The bottom line here is that although people were initially skeptical of cryptocurrencies, they are now widely accepted. The same can be said for non-exchangeable tokens, their market is growing very fast which means that more people will have to learn about them and more knowledge and investment will eliminate doubts.

I see Interchangeable Signs (NFT) as the future of investment and it is important to openly welcome any investment in the digital revolution. One should try to get as much information as possible about this revolution before judging it and calling it a bubble, and investors should know how much they can risk before investing in any new technology.

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