The hype surrounding NFT's
There is no doubt that the cryptocurrency market and the blockchain have boomed in recent years, but what about NFT's? How are they related? Continue reading this article to learn more about the mystical world of NFT's.
To begin with NFT stands for Non-Fungible Token and is best defined as a digital asset that is encrypted with the same encoding as cryptocurrency and therefore cannot be exactly duplicated. Simply, NFT's have their own unique digital signature that makes it impossible for them to be exchanged for another of equal value. In short, NFT's are tradable rights to digital assets. NFT's have become increasingly popular for many music artists, digital artists, and even brands like the NBA, Taco Bell, and Pizza Hut.
It is important to note that, generally, NFT's have a strong correlation to one specific cryptocurrency for the reason that it was initially established through this cryptocurrency blockchain, Etherum. Another vital aspect to understand when learning about NFT's is the difference between this and cryptocurrencies. To establish the difference, NFT's are intended as pure assets, whereas cryptocurrencies are intended primarily as a form of currency.
Although first attempted in 2012, the rise of NFT's gained momentum in 2019/2020 when the world seemed to have gained interest in the markets, after stimulus checks and the freedom of learning became more popular due to COVID-19. The fresh generation seems to have embraced the lifestyle of art colliding with finance.
Despite the fact that NFT's currently seem to be a craze in the modern-day, there is no real way to know if they will thrive in the future. Some analysts claim there is a future for NFT's simply for the reason of transparency coupled with security and the natural human nature of progressing in the tech world. Do you believe NFT's are here to stay?
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This article was written and submitted by IGM FX.
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