non-fungible token or NFT Has digital assets become popular lately? The sales of NFTs have increased manifold in the recent times, with many Indian celebrities like Amitabh Bachchan, Vishal Malhotra, Sunny Leone and many others launching these digital tokens of their own. These digital assets are slowly entering the Indian market and have become particularly popular among investors. An NFT is a unique crypto token that appears on a distributed ledger. Although their market is still relatively small, young people are mostly attracted to crypto coins. However, NFTs are currently being portrayed as a one-of-a-kind digital solution to collectibles. Read on to know whether you should buy NFTs this Dhanteras.
What is NFT?
Simply put, NFTs are a one-of-a-kind digital asset that represents real-world objects such as music, art, in-game articles, videos or even social media posts. Being irreplaceable, the NFT cannot be replaced by anything else as it is unique and irreplaceable. In recent times, NFTs have become a popular way to sell and buy digital artwork. However, these digital tokens have been around since 2014.
But what makes NFTs unique? Data can be easily stored from the Internet, one could argue. However, even though one can get a free copy of an item in NFTs, the unique properties will definitely be missed. This is where the irreplaceable part comes into play. Simply put, there are millions of copies of Van Gogh’s painting The Starry Night available all over the world. But the original, kept in the Pushkin Museum in Moscow, still holds the same value.
How do NFTs work?
Traditional artwork or similar things have importance to them because they are unique but digital art can be copied millions of times without any restrictions. This is where NFTs come in and ‘tokenize’ them to create a digital ownership, which can be bought and sold for a reasonable price. NFTs exist on a blockchain (a distributed public ledger that keeps track of transactions), specifically a digital blockchain.
NFTs are created from digital works, which represent objects such as art, GIFs, videos, music, collectibles and even tweets. According to Forbes, the first tweet by Twitter founder Jack Dorsey was converted to NFTs and sold for over $2.9 million.
Should you buy NFTs this Dhanteras?
NFTs or non-fungible tokens are the new talk in town, but many skeptics worry that these digital assets are a bubble waiting to burst at any moment. So, before buying NFTs this Dhanteras, you should take a step back and think, as it depends on a lot of factors.
According to a Forbes report quoting Ari Yu, president of the Washington Technology Industry Association Cascadia Blockchain Council, NFTs involve a lot of risks and their future is not certain. “We don’t have much history yet to judge his performance. Since NFTs are so new, it might be worth investing a small amount to try it out now,” she tells Forbes.
NFT is overall a personal decision. You can buy these for less than Rs 10 or even spend lakhs of rupees on them. You can also go for it if it suits your personal taste. However, if you are investing in NFTs, it is advisable to keep an eye on the recent market trends before buying on Dhanteras.
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