NFT Myths – You should know about

NFTs are non-fungible tokens that are unique and not mutually interchangeable. NFTs are usually stored on blockchain containing information on digital assets and ownerships. Artists from any field can avail the benefits of NFTs. NFTs can take as many forms as avatars, memes, audio tracks, etc. Several properties like the uniqueness and authenticity, inability to get lost or destroyed, royalties for the artists, easy market access make NFT very successful. According to the NFT 2020 Yearly Report, NFT has achieved a profit of over $250 million. Every old and new artist today believes in investing in NFT and if some are new in this field then they can approach Non Fungible Token Companies to build NFT for you. Today’s era is the era of NFT but with rising popularity comes criticism. The chatter that goes around crypto and Non Fungible Tokens is not always true. There are some myths that are harmful. 

Let’s look at some popular myths and analyze the facts and myths:

1) Complicated nature of NFT:

This cryptographic coin signifies ownership over a digital asset and the record regarding the ownership is carefully preserved. The idea of scarcity makes it hugely appealing to collectors. All the nature of buying, collecting, and storing of NFTs might sound too complicated at first glance but that’s not the case actually. The value of collectibles in NFT depends on factors like quality, authorship, uniqueness, scarcity, and cultural relevance. New technology is generally hard to use at the beginning but over time it will be just like some app running in the background of the phone smoothly even if you don’t pay heed to the technical aspects. It will be so easy that a kid can also enjoy NFT in the coming future.

2) NFTs have no real value:

This is another big myth circling around NFTs. Many consider it to be one bad investment due to its inability to get converted into cash. Usage of NFT varies from person to person; some like to play around with the collectibles whereas some simply like to store them. The open editions of digital collectibles are priced to resell for a small window span. Here the scarcity factor gets decided by the amount of time for purchase. Making wise NFT purchases with the help of Non Fungible Token Development services can be done by investing in original works.

3) NFTs are useless:

It is undenying fact that NFTs saw the dawn of success after a period of time when they triumphed in achieving the trust of many. The slow rise might be a reason behind the traditional art world’s misunderstanding of NFTs. Today many legendary artists are exploring NFT today. NFT has also encouraged the traditional painters to explore this digital wonder, who otherwise preferred canvas and paintbrush normally. For e.g. the Centre Pompidou of Paris is known for digital art exhibitions.

4) Anybody can copy NFTs:

It might occur to few that since NFT is some 3D animation with music playing in the background and can be copied easily. Wrong! 

The digital assets on NFT are backed by blockchain where ownership is recorded in the form of codes that are not to be altered. This way this is more secure than a physical asset which gets easily copied. NFT doesn’t act only as a guard to your physical assets but also gives exposure to different utilities such as VIP access to some event, early access to any album before launch, discount on merchandise, membership to some exclusive committees, and many such.

5) NFTs are harmful to the environment:

For minting, buying, and selling of NFTs, cryptocurrencies are used. Minting is one fancy term for data recording on the blockchain. Bitcoin and Ethereum use “Proof of Work” to validate all the transactions. This model uses a lot of energy to solve complex math puzzles and the complexity increases with the addition of new blocks. As a result, more computing power and electrical power are getting into use to keep the network running. This claim is partially true because in recent times blockchains are moving towards a more energy-efficient validation method. The new method is called “Proof of Stake” which eradicates the need to spend huge amounts of computing power.

6) NFTs top in money laundering:

It is a widespread misconception that cryptocurrencies are for criminals and tax defaulters. In fact, cash is much more crime-driven than crypto. Every information put in Blockchain is completely transparent and the slightest amount of scam is easily traceable. Moreover, it’s easy to track wallet addresses and recover stolen funds in cases of mishaps. Fiat money crime is much larger than crypto crime.

The treasure that blockchain owns is going to develop more in the coming future and will become more than a fad. NFT is still in the developing stage and it is hard for all to get their hands around it all at this moment. It’s important to study about NFTs first otherwise anyone can fall into the trap of the ongoing myths. The outlook towards NFTs varies from person to person; traders will want to make money, collectors will find joy in assembling unique pieces whereas fans will desire to own little something of their favorite movie, comic, or music track. It is up to the user how they want to connect.