Non-fungible tokens or NFTs are digital assets have become popular now-a-days. The sales of NFTs have surge manifold in the recent times, with many Indian celebrities Amitabh Bachchan, Vishal Malhotra, Sunny Leone and many others launching these digital tokens of their own.
These digital assets are slowly making their way to the Indian market, and have become especially popular among investors.
An NFT is a unique crypto token represent on a distributed ledger.
Their market is still relatively small, with young people being mostly drawn towards crypto coins.
NFTs are currently being present as the digital solution to collectibles that are one of a kind.
What is an NFT?
NFT is a one-of-a-kind digital asset that represents real world objects such as music, art, in-game articles, videos or even social media posts.
Being non-fungible, NFTs can not be interchange with anything else as it is unique and irreplaceable.
NFTs have become a popular way to sell and buy digital artwork.
These digital tokens have been around since 2014.
What makes NFTs Unique?
Data from the internet can be store easily, one may argue.
Even though you can get a free copy of one item in an NFT, the unique properties will be surely missed out on.
This is where the non-fungible part comes into play.
To put in a simple manner, millions of copies of Van Gogh’s painting The Starry Night is available all across the world.
But the original one, kept in the Pushkin Museum in Moscow, still holds the same value.
How do NFTs Work?
Traditional artwork or things similar to it have value to them because they are unique but digital art can be copy millions of times, without any restrictions.
This is where NFTs come in and ‘tokenise’ them to create a digital ownership, which can be then buy and sold for an appropriate value.
NFTs exist on a blockchain, especially digital blockchains.
NFTs are create from digital works, which represent items like art, GIFs, videos, music, collectibles and even tweets.
The first ever tweet by Twitter founder Jack Dorsey was convert to an NFT and sold for more than $2.9 million, as per Forbes.
Should you Buy NFTs?
NFT or non-fungible tokens are the new talk of the town but many sceptics worry that these digital assets are a bubble waiting to burst any time.
You should take a step back and think, because this depends on a lot of factors.
NFTs are by and large a personal decision.
You can buy them for as low as Rs 20 or may even spend lakhs of rupees on them.
You may even go for it if it suits you personal wish.
If you are investing in NFTs, it is advisable to keep track on the recent market trends before you buy.
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