You’ve probably heard of a new hype in the digital world: NFTs. These non-fungible tokens, translated into non-fungible tokens, are increasingly appearing on social media. The boom came after several celebrities invested heavily in acquiring certain types of NFT. Neymar, for example, paid R $ 6 million in an NFT from the board ape yacht club collection in early 2022.
As it becomes more and more common, it is important to go a little deeper into the matter. After all, is NFT insanity a trend or another hype in the digital age? I’ll tell you what I think about it.
For starters, what is NFT?
A non-fungible token is a cryptographic token that represents something unique. However, unlike cryptocurrencies like Bitcoin and many other utility tokens, NFTs are not interchangeable.
And what does that mean? A fungus item, such as money, can be exchanged for another. A banknote can be exchanged for another of the same value or even for others adding the same value. However, NFTs are like unique, specific and distinct “works of art”. Therefore, immutable.
But is that all? No, these are used to create the concept of verifiable digital scarcity. Thus, the possibility of operating assets as a digital asset and through different platforms. That is, NFTs are used in a variety of applications that require access to unique digital items, such as cryptographic art, crypto-collectibles, and crypto games.
Trend? I don’t think so!
The idea sounds interesting, but treat it as a long-term trend? I do not think so. And there are some points I would like to mention that we need to pay attention before betting on a hype.
Policies to be vigilant about NFT 7
The first thing to pay attention to is understanding who is talking about it. After all, you shouldn’t believe everything that comes out of someone’s mouth to talk about what you need to do. NFT Hype wants a lot of personalities to talk about it, and with that, everyone tries to be a little more expert.
Another thing is that it was rare for those who have adopted and created a technology to conquer the market in the long run. That is, one who adopts a tendency at the right time survives in the long run in many more ways.
Mystery of potential NFT applications
Some argue that NFT is a new way of creating industry. Art is art, and that means that any kind of expression can have an artistic meaning, if it is the author’s purpose. However, we know that the artistic factor alone is not enough to justify all this hype.
Another aspect is the problem of access and exclusivity. There are already millions of other ways and technologies to guarantee exclusive access to those who wish to pay for it. So, there is nothing new so far.
Another myth that attempts to justify this hype relates to its use as an official document of ownership. However, in an online situation it may work, but trying to justify this ownership to the government is nothing.
Finally, a question that involves issues and that I want to make clear once and for all: NFT has nothing to do with Bitcoin! Cryptocurrency has many capabilities because it is decentralized, different from others. So, this is why when Bitcoin shows potential growth, other crypto tends to zero in the long run.
NFT? Don’t push too hard … beware of hype
Yes, it is true that NFT is on the rise right now, and we know it because everyone is talking all the time. However, this is why you need to be careful. After all, who are you talking about? What’s the point of trying to make an even bigger hype on the subject?
This does not mean that NFT will not be consolidated in the long run. But for now, it’s important to understand the raw truth that not everyone is talking about. In other words, don’t stress that NFTs are the trend that will control the market from now on. Always try to understand all aspects of what is emerging, try to better understand whether it is a long term trend or a hype of the moment.
In an exclusive training with the InfoMoney copy team, Rocky Vega reveals the secrets of how you can become a professional copywriter in no time.