By Heyoan | | 29 Jan 2022

What is NFT?

An NFT is a digital object that you can own. NFTs live on the blockchain, so no one can take them away from you. And with the NFT marketplace, you can buy, sell, trade, and display your NFTs. A little something. Blockchain technology allows us to see who owned the work before and who owns it now. In other words, it acts as a certificate of authenticity and you can be sure you're not buying a fake.
Conclusions? (1) The NFT market has become an attractive market and is attracting more and more celebrities, athletes, movie stars, collectors, and NFT investors. Billionaires like Elon Musk, Mark Cuban, and Michael Jordan are investing cash in the NFT are Hollywood celebrities like Madonna, Mick Jagger, and Snoop Dogg.
(2) In the past 12 months, the NFT market has grown by 18,000%. A truly impressive result!  
(Do you know any market that has grown 18,000% in 12 months? Because I don't).
And that makes some NFT collectors and investors, rich. Here are some examples: (1) The New York Post confirmed that a teenager from London made $400,000 in two months selling NFTs. (2) The story of a Wisconsin father who made a fortune of $69 million on NFTs was popular in Forbes, CNBC, and the Washington Post. 
In 2022, despite the tepid market conditions related to current events, the NFT market is going strong and new collections launch every week.

I think collectively if you look at all the NFTs and the fact that 2021 was the first year of market adoption, there's definitely still a lot of room for growth - said Bobby Ong, one of Coingecko's directors. We already have a set of blue-chip NFTs, but I think the industry is still barely scratching the surface of what NFTs can be and what they can do, especially if Metaverse comes to fruition - he added.


Someone may say that in the digital world, everything can be copied. Yes, it is true. But, the NFT that a digital artist has created is the original. And thanks to the NFT marketplace, that digital artist can become a rich man - if his works are successful, of course.
The buyer of the artist's work, on the other hand, becomes the single owner of that work. And other NFT collectors can only own worthless copies of the work.
(Just as there are thousands of copies of the Mona Lisa painting. But the original is one and it is owned by the Louvre in Paris).



And how do you estimate the actual value of an NFT?

Most people determine the value of a digital work based on its provenance (e.g., whether it was owned in the past by someone well-known in the public space). But there's more to it than that.
To determine the value of an NFT, you need to collect a lot of data, select it, and then analyze it cold. In other words, you have to take into account a dozen or so factors to at least approximately determine the value of a given NFT. That is why it is so difficult.
And if we want to take shortcuts... there will be those who will tell us that the NFT market is a bubble that will burst soon. And then dilemmas arise in the mind of an NFT collector. On top of that, some pieces now have more value than they should. And others, are undervalued now compared to what they will be in the future. But if I knew how much a work of art would cost in the future - I would become a very rich man, wouldn't I?



So, it's really hard to say how much a particular piece will cost in the future. But I think the NFT market has a bright future. Projects that are highly regarded by collectors now have a bright future. (Because already today, thanks to a specific NFT, you can, for example, get into a concert, get a free tattoo or get free tokens).
Other projects, on the other hand, will simply disappear. And to the question: which of these projects will be valuable in the future - I answer - nobody knows.
And for this reason, you should at least buy something that if it doesn't turn out to be valuable in 3 or 4 years - then at least you will have a picture that you like and that you can hang on your wall.



And how do you recognize a fake or fraudulent NFT?

Simply tracing the origin of the NFT, won't do you any good if it turns out that the specific NFT was stolen elsewhere. So, don't take shortcuts. That is, don't let yourself be cheated.
Don't buy NFTs from unreliable sources. If you buy Crypto Punk on OpenSea, for example, that is a reputable source and you are safe. If nevertheless, something would be wrong with your NFT - then OpenSea will check exactly what you bought. And it will start by contacting the digital artist to determine if it is a real work by that artist and if they minted it. You can count on them for help and possibly financial compensation.
On the other hand, if you create an account on a suspicious NFT site, you could be scammed. And then you will have a problem that will be difficult to solve.

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I'm a fan of cryptography and blockchain technology.

I am a crypto vault enthusiast and I have been dealing with the digital market since 2015. I systematically analyze market trends and invest in crypto values. In the articles, I present my opinion and leave it to the readers to draw conclusions.

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