Do you know what NFTs are?
To understand the concept of NFTs, we first need to know and understand that in our legal system, there are fungible goods and non-fungible goods.
Expendable goods are those that can be exchanged, having a value according to their number, measure or even weight. Non-fungible goods are those that are not substitutable and are intangible.
In other words, an example of fungible goods is cash. A banknote can be exchanged without any problem for another banknote or even for coins. Moreover, this banknote is consumed when you use it, and you can get more.
And on the other hand, an example of a non-fungible good would be a work of art. If you have a painting at home, it is not consumed when you use it, and it cannot be replaced by another painting. A work of art is unique.
NFTs have a very close relationship with cryptocurrencies, at least technologically. And, although they are opposites, since a Bitcoin is a fungible good, and an NFT is a non-fungible good, they are like two sides of a technological coin. NFTs work through blockchain technology.
Transactions in the virtual world are generally conducted using cryptocurrencies, and apart from these, non fungible tokens (NFTs) are the primary method for monetizing and exchanging value within the metaverse.
An NFT is a unique digital asset, serves as proof of ownership and is not exchangeable, as we discussed above.
Why would you buy an NFT if NFTs cannot be bought and sold as easily as Bitcoin?
Well, it’s simple, because we believe that its value will increase over time, and then we can sell it at a higher price. Nobody spends €20,600,000 for a house in the metaverse because they like intangible houses, but because of the value of that particular house being an NFT.
Therefore, it is that if I buy a NFT for 1,000,000 euros, in the future I can resell it for more money. It is a unique asset, which in theory should give it a higher value as there is no other like it.
Do you want to make NFTs? Here is a video so you can learn how to do it in just 10 minutes.
If you want to learn more, you can read everything about Metaverse here.