In the last few years, there has been a huge hype surrounding guarded Non-Fungible Tokens, or like everyone, better know them under the acronym NFT. From 2020 until today, the popularity of these tokens has risen exponentially, attracting more and more investors worldwide to become a part of the growing NFT community.
Numerous interesting NFT ideas have been appearing since 2014. However, the year 2021 was when Non-Fungible Tokens finally managed to become mainstream. Last year the total NFT sales hit an impressive $25 billion. If we compare it to the $94.9 million only a year before that, we can see why NFTs have been in the spotlight lately.
For newbies who’re yet to find out the magic potential of Non-Fungible Tokens, we’d like to explain in simple words its true meaning before we answer the ultimate question, “Is it worth investing in NFTs in 2022”!
NFTs are explained to absolute beginners.
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NFTs, or Non-Fungible Tokens, are non-interchangeable units of data typically stored on Blockchain technology, a form of digital ledger that can be traded and sold. Usually, NFT data unit types are associated with multiple digital files such as audio, videos, and photos.
However, nowadays, NFTs can be in the form of tweets, GIFs, memes, and even some physical assets. Even though they are very similar to cryptocurrencies, the main difference between NFTs and cryptos such as Bitcoin and Ethereum is that NFTs are non-fungible, i.e. unique identifiers that are unable to be substituted or copied.
Non-Fungible Token ledgers are known to provide proof of ownership and a public certificate of authenticity. Nonetheless, all legal rights concerning NFTs are to this day uncertain. It’s crucial to note that copying or sharing the underlying digital files is not restricted by NFTs.
In addition to that, NFTs do not prevent the creation of Non-Fungible Tokens with files that are associated identically, nor do they convey the copyright of digital files.
Should you consider investing in NFTs in 2022?
If you are still wondering if there is any point in investing in Non-Fungible Tokens in 2022, we’ll give you some crucial information that will help you decide on your own. First of all, NFTs, in general, are not entirely “ready” for a thing such as primetime investing.
According to experts’ opinion, it’s much easier to own any cryptocurrency first before you consider investing in NFTs. The reason for that is that the process for buying NFTs is a bit complicated since you’ll need an Ethereum-compatible crypto wallet and own some ether.
In addition to that, NFTs are suscep[tible to both crypto scams and hacks which are very common in the virtual world. If you type “NFT scams” on google, you may see how many articles and complaints there are on the internet. There’s a great potential to fall into trouble.
However, despite all this, some experts claim that investing in NFTs can be a good thing if you consider that it will grow exponentially in the following five years. Thus, if you are a serious, intuitive, and long-term investor, you know which NFTs have the most significant potential.