NFTs, although a mainstream topic now, have been around since 2014. There was a significant spike in popularity around 2017 due to digital characters like CryptoPunks that paved the way for a whole generation of NFT collectors.
From Hollywoods’ elite to the blue-collar worker, NFTs have been regarded as in-demand and highly desirable. In 2020, Jack Dorsey, co-founder of the social media platform Twitter, sold the NFT of his first-ever tweet for 2.9 million dollars. In 2021, a digital piece by the artist known as Beeple sold for 69 million dollars.
NFT Collections creators have found great success on the marketplaces. Bored Ape #8817 sold for 3.14 million. This propeller hat sporting animated ape is part of the Bored Ape Yacht Club, or BAYC as it is better known, one of the most successful collections to hit NFTs yet.
With all of this money talk, you probably want in, right? Well, how many people truly understand what an NFT actually is? Why have they become so coveted among all walks of life? The most straightforward place to start is answering the question of what does NFT stand for?
What NFT Stands For
NFT is an acronym for non-fungible token. To understand that, we must first understand what non-fungible means. A non-fungible item is rare and cannot be exchanged for another of the same value. Some examples are paintings and family heirlooms – non-replaceable things that we invest emotional value in.
While people use cryptocurrency to buy things, an NFT is a purchased token of ownership. It represents a digitized item that you found valuable enough to invest in. Though somewhat alike, NFTs are not the be mistaken with cryptocurrencies like Tether and Dogecoin. NFTs are usually built into the same programming as crypto, which explains why people get them mixed up, but that’s really all they have in common.
Like money, cryptocurrencies can be exchanged or traded, making them fungible – meaning that they can be replaced with almost the same thing of the same value. NFTs, on the other hand, can be purchased at a low amount and re-sold for a considerable profit.
Who uses NFTs?
Although that is a great question, I think a better one is who doesn’t use NFTs? Artists, Musicians, Fashion designers, you name it. Hundreds of thousands have joined in the NFT fun, and many are making a killing at it. Creators are now connecting directly with their fan base, excluding unnecessary intermediaries, offering digital tokenized work delivered in the most unique form currently available – an NFT.
With studios focused on entertainment like Non-Fungible Films, visionaries are empowered to take their imaginations to other levels. The highly experienced team constructed the Non-Fungible Films Membership Pass offering an all-access token for everything within the NFF ecosystem, offset with carbon credits. Minters will receive a free Oscar Haley and The Great Beyond NFT!
For businesses building their brand, a domain NFT is a fantastic option. Combining your crypto wallet address with your website allows others to send funds or crypto right to your domain. Can you imagine the convenience this gives your customers to make payments quickly and easily? Quite the selling point if you ask me.
Companies like Mcdonald’s and Nike are using NFTs for marketing purposes. Releasing limited edition NFT collectibles, these large brands are not only building loyalty with their consumers but emotional attachments that can last a lifetime.
What are NFTs Used For?
NFTs can be almost anything. Generally speaking, there are about ten major NFT types at the moment, but this can change at any time. Technology is evolving daily and presents new opportunities to all. The current most popular forms of NFTs are digital artwork, collections, and music/media.
There is an increase in the popularity of buying and selling digital property. Real estate is the latest addition to the NFT register – thanks to the development of smart contracts, the process couldn’t get any easier, not to mention the security factor. Like IRL properties, prices have been steadily rising, leaving Scouters in somewhat panic.
The business world, as a whole, has been dramatically impacted. Customers are buying experiences, and while being entertained, they’re earning business owners revenue. It’s a win-win. Furthermore, smart contracts alongside NFTs sure have made exchanging information easy! With the ability to write in the T&Cs and other pertinent info, why would you conduct business any other way?
Conclusion
The critical factor in all of this is NFTs are available to everyone, despite their status, age, race, or gender. An entirely new horizon is ahead, and many people are taking the opportunity to make their dreams come true. Businesses are constantly developing new ideas, and with access to secure, online transactions that are easy to conduct and verifiable – NFTs are quickly becoming the go-to alternative marketplace.
