What is the difference between an NFT and a crypto currency?
As the trend of blockchain and cryptocurrencies evolve and mature, we see that there is incredibly progressing interest in non-fungible tokens. (NFTs) While most people today generally think of cryptos as currencies, NFTs are not just a digital representation of currency. They are a unique “thing” and represent any unique, digitally scarce object including real world physical goods.
A crypto is simply an NFT that includes some level of ownership or value associated with it. A game token, for instance, is a coin and a badge is an NFT.
What is an NFT?
The word denotes the ownership of something unique (individually owned). This “thing” can be virtually anything including domain names, game items, emails, data, certificates, stocks and bonds, and music production rights.
For example, Domain name: ChuckNorris.eth
One way to understand what an NFT is or might one day be is to look at the trading cards industry. The trading card industry is expected to generate $5.8 billion in revenue this year. There are more than 1 billion people who collect and trade various trading cards. Those collectors store their beloved pieces of plastic in albums, display them on shelves and share their passion at conventions. Most of these “things” are not fungible but simply individual pieces on various platforms such as eBay or inside the Ethereum wallet.
The majority of those collectors are not asking the question ‘What is an NFT?’. They are collecting the same exact thing in both cases - specific instances of humanity’s desire to own great assets. Crypto traders are not that different from the majority of this traditional trading card collectors who plan to hold their amazing assets as assets for years to come. As more and more new people begin trading real world things on the blockchain - what I believe is the true brilliance of these dark markets will shine forth. The true magic of owning an individual asset inside the blockchain begins when someone finally realizes that what they own inside their wallet is a unique piece of their heart and soul - something no one else can own. For all intents and purposes, there will never be another Bitcoin or Ethereum or SECURITYtoken or any other NFT ever created again that could be swapped with any other individual coin.
Those beliefs and properties will unfold, rest assured, as history continues to unfold inside this amazing era of blockchain and cryptocurrencies - shaping our future reality in profound ways.
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