The world of cryptocurrency is not limited to fungible tokens. A huge number of coins that appear on the market are "diluted" with NFTs - unique records in the blockchain that have a special value. It is precisely because of their uniqueness that non-fungible tokens have begun to gain popularity among collectors, artists, and anyone who wants to make money on digital technologies. In this article, you will learn what makes an NFT valuable and what affects NFT's future value.
Unlike open and accessible records in the blockchain, which are equal to each other and can be interchanged, each created NFT remains unique. This record is not shared and cannot be changed or faked - it is eternal. It turns out that the essence of the token is immutable and this is of particular value, especially for securing copyright and uniqueness on various objects: images, music, and even Tweets.
Having learned what makes NFT art valuable, one can also understand the value of those objects that were created specifically for sale. For example, anything autographed by a celebrity will become rare, unique, and valuable. A physical thing can be counterfeited, but a digital token with a record on the blockchain (which can be verified) cannot be replaced with a similar one.
You can find out all the information about the token very easily, as well as how much is NFT worth. It is enough to copy the address of the object in the blockchain. You can go to it and see absolutely all operations on the token, its history, and other information. Recently, this technology began to be chosen not only by artists but also by famous musicians, celebrities, and creators of social networks.
All properties of the rarity of the token are stored there, in the blockchain. Buying it means obtaining an exclusive right to all content contained in the NFT. Such digital collecting is gaining popularity because many public people have already seen the benefits of the release of their projects. For example, the first Tweet on the most popular social network in the world was sold for millions of dollars.
On the other hand, everyone can enjoy the selected digital art objects: view, copy, listen, read, and send. However, all these manipulations are performed with copies of the real NFT - the original token has only one owner and it will remain unchanged until the person decides to sell or transfer it to another.
It is the same as buying an original painting by a legendary or simply talented artist or owning a reproduction. The meaning of NFT is very similar to the worldview of the traditional art world. At auctions, it is customary to sell only originals and for a lot of money.
Another question arises: “How to value an NFT?” because with art objects everything is more clear. The value is formed from the age of the object, its author, and its type (painting, sculpture, photograph). Anyone can create a non-fungible token. Moreover, on special sites, you can create entire collections on your own.
Connoisseurs of digital rarities are helped by special services that determine the value of a token. The system knows exactly how to check the NFT value in a few seconds. This takes into account factors such as demand among requests from other users, recent transactions for the selected collection or similar token, information about the creator, previous owners, and much more.
NFT technology is still very young - it appeared just a few years before it thundered all over the world. The first experiments with it began over ten years ago. In 2015, the first full-fledged NFT project was created, which was shown at the first conference of Ethereum blockchain developers in London, and two years later people began to actively learn about NFT.
The first piece of art that was turned into an NFT token was the work of the artist Banksy. The Morons (White) stencil created in 2006 has been digitized. From this stage a whole performance: the owners of the picture created its digital image - a non-fungible token, and the original itself was burned, broadcasting this process on social networks. The NFT token was subsequently purchased for $400,000.
The day after the burning of the Banksy painting, American rockers Kings of Leon released their studio album When You See Yourself as a non-fungible token. One of the editions included a digital album, its animated cover, and vinyl, and some included life-long front-row seats for the group's concerts.
Elon Musk's ex-wife, singer Grimes, has sold her digital drawings. In less than 20 minutes, NFT pictures brought her nearly $6 million.
At the same time, art in the traditional form is not always converted into NFTs. For example, in this format, they were sold:
The cost of these lots varies from hundreds of thousands to several million dollars.
Experts are looking for new ways to use NFTs. There are several prospects for using the technology:
Knowing what makes an NFT expensive, you can expect to profit from your investments in these objects, and eventually make a fortune on them.
The value of considered projects is calculated from the:
And don't forget about the increase in value due to the ability to bind any item using this technology. Copyright will never be infringed if only one person or company owns any NFT. So, if you own a specific token, you can prohibit using it at your discretion and issue such a right for a fee. This way of “registration” is reliable and simple.
The presented technology is developing very quickly and more and more people are paying attention to it.
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