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Blockchain

What is NFT? Why can it become a USD 1M investment?

The digital revolution in art represents an excellent investment opportunity

2021 is the year of digital investments. We have seen it with Bitcoin, which reached its all-time high and then plummeted. However, another digital asset promises to revolutionize the way we consume content, to the point of redefining what we considered as works of art: NFTs.

The first thing to say is that this concept should not be confused with the NFT Hydrophonic, which comes from agriculture. An NFT is a Non-Fungible-Token, which means a digital asset with an utterly subjective value.

It is the equivalent of works of art and other products, such as gold or silver in real life. The difference is that they are tangible goods, while NFTs are 100% digital, as we cannot touch them. Although cryptocurrencies are a similar concept, the truth is that NFT and crypto are not the same.

Precisely, the first ones emphasize the possibility that the objects are intended for collecting. In other words, the “authenticity” of a digital piece is what makes it possible to enhance the value of one of these assets, something that also occurs in “real life,” but, until now, has never been implemented on the Internet.

Let’s take an example to understand it better. In the world of painting, perhaps the best-known painting on the planet is “La Joconde.” The value of the original piece is practically priceless, not only because of the magnificence of the work, the technical prowess, and the time it took Leonardo da Vinci to create it but also because there is only one on the entire planet.

Although there are many copies of “La Joconde,” none can approach the value of the original work. No matter how well the painting is imitated, the authenticity certificate makes the original always the most valuable, no matter how many duplications there are. 

 

 

Features that make NFTs a digital revolution

The following are the main characteristics that define NFTs:

  • Unique. No two TFNs can be the same. While there will be similar assets, as is the case with works of art, each NFT itself is unique. It is worth mentioning that there will be “copies” in the network. For example, a tweet, an NFT, may be retweeted countless times or have thousands of screenshots taken. In the same way, a GIF or an image can also be “captured” by another user. However, you and only you will have the original copy.
  • Authenticity. Thanks to the blockchain system, the authenticity of the purchase can be verified. There will be a history of who bought and sold an NFT to confirm acquiring the right asset.
  • Owned. Here enters one of the most important factors in this whole affair. Unlike with music or movies, and NFT will be yours. That is, you are not buying a license to play a song or a movie, but the asset will be your property, something that can be corroborated with a certificate of authenticity.
  • Indivisible and without interoperations. Unlike crypto, you cannot acquire portions of a unit. It is impossible to own 1/5 of an NFT, as you need to obtain it in one piece. At the same time, depending on your usage, there may be no interoperability. For example, an avatar from one video game cannot be used in another, as they are different systems.

 

How to create my NFT for free and sell them for a lot of money?

Generating an NFT is easier than it seems.

Whether you are an artist, musician, or simply interested in the world of digital art, there are several ways to generate your first NFT for free, for example, through some services, such as OpenSea, Rarible, or S!ng.

In this last application, you will only need to touch the circular button to create or load a specific file. That is to say, the artwork that you will transform into an NFT may have been created through some specialized design software, such as Adobe Photoshop.

Once you have uploaded it, the service will generate the NFT executed under the Ethereum blockchain. That is, you will be the holder of the NFT, with its corresponding certificate of authenticity. In the future, if your artwork has a higher value, you will be able to sell it and get a significant profit margin. 

NFT


NFT and crypto: the future of 100% digital investments has arrived

NFT and crypto can be tremendous investment opportunities.

We must keep in mind that the future seems to be more and more oriented towards virtuality. Therefore, we observe that Non-Fungible-Tokens mean a real revolution for the traditional concept of art and collecting.

For many years, people had been betting on collecting in different ways: special cards, antique objects, or limited edition items have been just some of the things that people bought with the aim that, at some point, the value would increase.

Now the same thing is happening but in a 100% virtual way. Best of all, not only can you create your own NFTs quickly, but you can also purchase them, expecting the value to rise in the future. More and more companies are releasing completely digital exclusive collectible items, which could be revalued soon.

It’s the same thing that happens with Bitcoin, for example, as people buy a piece of a particular asset in the hope that it will increase and they can make a profit. The difference with NFTs is that, in addition, you become the owner of a work of art that also has an aesthetic experience value.

Anyone interested in investments needs to know what an NFT is, its characteristics, and how it can be created. If you want to know more about them, we invite you to read some of the articles you will find on our blog.