Wednesday, 7 April 2021

What are Non Fiungible Tokens? NFT - Opportunities and Threats

Lets break down Non Fungible. It is such an interesting term that its meaning is bound to arouse some curiosity.

Non Fungible of course comes from Fungible. Fungible is derived from the Latin word "Fungi."

As per online dictionaries, fungible means mutually interchangeable. Something that can be substituted by something similar of equal value. "Similar" and "equal value" are the key words that render the fungible goods interchangeable. 

One great example that I found is that your House may not be fungible, but the dollars with which one buys it is. 

Now coming to the context of NFTs.

The normal cryptocurrency 

Cryptocurrency is a digital, virtual currency. Bitcoins are the most recognisable of them. They are enabled by the blockchain technology. They operate out of the normal banking system, so the user base is still limited to those with an understanding of the digital world. However you dont really need to know coding to own cryptocurrencies. One can buy them using normal transactions. However each place has its own legal implications with regard to trading and mining cryptocurrencies.

It was a matter of time before crypocurrencies became more specialised. There comes NFTs. 

Can you believe it, in the world of NFTs, a cat, or more appropriately a kitty, assumes a significant role. Crypto Kitties, creating and selling digital art of kitties, is the basis of one type of non fungible token. Cryptokitty is a video game where one can collect or breed ones own furry friend!

So is there opportunity in owning NFTs or Cryptokitties?

https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq

It is early days yet. But the experience of bitcoins have showed, the opportunities are immense. Newer and more complicated NFTs are going to come into effect, some will take off, many will fall by the wayside. Cryptocurrency mining is limited, so the more people show an interest, the harder and rarer it will be to come by thus increasing its value. What makes NFT even more rare is that each one is supposed to be unique.

Like a collector of rare arts and artefacts, each NFT will have its own space on a collector's shelf, in an ideal world. Other than graphics, tweets, videos, green ideas are some stuff that are on the way to be NFTS.

So watch out! and err... keep mining or ..loooking out for virtual gold.

This one sold for more than 6 mn USD!!!

https://niftygateway.com/itemdetail/secondary/0x12f28e2106ce8fd8464885b80ea865e98b465149/100010001


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What are Non Fiungible Tokens? NFT - Opportunities and Threats

Lets break down Non Fungible . It is such an interesting term that its meaning is bound to arouse some curiosity. Non Fungible of course com...