NFT stands for a non-fungible token. Or a picture that cannot be replaced. It’s unique. In this case, a unique digital file. This is often a digital work of art. That can really be anything. From a new armor in a familiar game to an emoji. NFT is also used to make someone the owner of a digital work of art. That is also necessary. Because if there were no ownership, the file could be duplicated infinitely. Then there is no longer any question of an irreplaceable (unique) digital work of art.
Despite this knowledge, it is still incomprehensible to many people why so much money is spent on a simple digital file. Why do people sometimes pay millions of euros for a small digital file? What makes this so special? How did the hype come about and what exactly does the future of the NFTs look like? And what does this mean for the people who are interested in NFT? Should you join NFT alpha groups first? Is it wise to invest in this now? What’s in it for you?
All these questions and still too few answers. In this article, we try to change this.
The huge hype about NFTs
NFTs have been around for many years. However, there was no talk of hype yet. As with many other hypes, these often only arise after a special and above all surprising development. You also saw this with bitcoin, for example, when a young Dutch person suddenly earned millions. Simply because he had bought in at the right time. A lot of people suddenly saw trading in bitcoin as a way to get rich quickly. Of course, these are just exceptions, but they do fuel the popularity enormously. We also saw this at NFT.
The hype about NFT has been around for quite some time. However, this also became clear to the general public in the spring of 2021. At that time, an NFT was sold in a traditional auction house. It was the very first time in years that this happened. It was a sum of no less than 69 billion. A few weeks later, the very first tweet from the founder of Twitter was also sold for 2.9 billion dollars. This news was even discussed on the NOS eight o’clock news. And when that happens, you know that everyone is going to talk about this. The hype had really started.
When do you buy an NFT?
This is a good question and different for everyone. An NFT is always bought (and sold) on an NFT Marketplace. This is done through cryptocurrency. People who buy an NFT often have different intentions with this. One is simply an art lover and has fallen in love with a specific digital file. The other think mainly from profit and has the feeling that more can be gained from such a unique file over the years. This can lead to an NFT being purchased for a reasonable amount and reappearing on the market in a few years.