How to know if NFT will be appreciated?  – Cryptocurrency – Estadão E-Investidor – Top Financial Market News

How to know if NFT will be appreciated? – Cryptocurrency – Estadão E-Investidor – Top Financial Market News

  • NFTs are digital assets that represent real-world objects – such as art, music, video and game items – and are traded online.
  • The most common digital assets are related to digital artwork, but there are also gaming, music, photography and sports equipment that can be used to register physical objects following the NFT protocol.
  • The appreciation of NFT, like the artwork, depends on the equation between scarcity and demand that arises around this type of product. Therefore, the rarer the work, the greater its value.

You may have already noticed that NFTs The world of investing and beyond is a topic of discussion. In 2021, “NFTThe British Collins Dictionary named it the best word of the year. But, finally, What is the value of NFT?

To go deeper into the subject, the E-Investor During the VTEX DAY, Digital Business Accelerator spoke with Raphael Dietrich, founder of BetMinds – a digital transformation event held in Sao Paulo (SP).

What is NFT?

There are non-fungal tokens (NFTs) Digital assets Which represent real-world objects – such as art, music, video and game items – and are traded online. “Unlike cryptocurrencies like Bitcoin and many other utility tokens, NFTs are not interchangeable,” Dietrich said.

Dietrich explains that fungal things like money, Another fungal item can be exchanged. For example: “A real note can be exchanged as long as its monetary value is the same”, he said. Impure objects are artifacts, rare objects and other unique patterns.

Mona Lisa frame in pink, blue and purple pixels
NFTs are digital assets that represent real goods and trade online. (Source: Shutterstock)

Each NFT is registered on the blockchain, A type of cryptocurrency laser. The system guarantees the uniqueness and ownership of the property, enabling its negotiation. “Non-fungible tokens represent something unique and personal that cannot be changed,” the executive explained.

How to invest in NFT?

For Invest in NFTsIt is necessary Buy a digital asset. According to experts, the most common digital assets today are related to works of digital art, but also to games, music, photography and sports equipment.

NFT can be traded directly to interested parties. However, the most common Buying and selling NFT on special platformsSuch as OpenSea and Rariable Coinbase NFT.

Once purchased, non-fungible tokens can be used for any transaction, even as collateral in a decentralized loan.

How to know if NFT will be appreciated?

Young man showing NFT on a cellphone
Digital business accelerated startup launches collection of NFTs. (Source: Betminds / Reproduction)

Dietrich explains that the NFT praiseLike artwork, Depends on the equation of scarcity and demand Which occurs around these types of products. Therefore, the rarer the work, the greater its value.

If the work is appreciated by the people, then NFT creates value. “For this to happen, the project needs to understand and what it will generate for those who have it. The possibilities are diverse, but the scarcity will tell a lot about the future, “said the expert.

The cost of digital work may also be related to the artist who created it, as it were in the traditional art market. Criticism or the digital asset market is another factor that contributes to a Praise NFT.

Three NFTs from the Board App Yacht Club Collection
The Bored Ape Yacht Club’s collection of NFTs is the most expensive in history. (Source: Shutterstock)

Dietrich cited the collection of NFTs from the Board App Yacht Club. The iconic monkeys of the collection have elevated the industry by defeating celebrities. Bored Ape Yacht Club has established itself as the most expensive NFT collection in history, with the cheapest NFT priced at BRL 1.7 million. Transactions involving NFT easily exceed millions of dollars.

Also read:Board apps: NFTs that can own Neymar’s ‘partners’

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