To understand whether NFT is a fad, one has to first be conversant with what Non Fungible Token is.
What is NFT ?
It is a digital token, generated using a cryptographic protocol of the same sort that underwrites currencies such as bitcoin, certifying the uniqueness of some image or other digital file. An NFT hence can be viewed as a collectible digital asset that acts as a unique digital certificate of authenicity and ownership for a physical or virtual item.
What is a NFT market place ?
Next hop on to the bandwagon for where the curious on NFTs hang out. It is called the NFT market and what better place than the 3 most popular ones : OpenSea, NFT Gateway, and Rarible. There are many more out there, but for now, let’s see what is piquing interest. You can also see NFT collections trending over the past 24-hours or filter by the past seven or 30 days. You can also explore examples of NFT digital art and view secondary sales. You will see NFTs can be created for a physical or digital painting , video, animation, piece of music or text, a tweet or a collectible like a digital sports trading card. There are many more out there in the market place.
Is it another Bitcoin frenzy?
Some of the cases are eyebrow-raising, especially at high valuations, so it is hardly surprising that many have taken to calling NFTs a fad. NFT can be bought with real money or other crypto currencies and the transactions are recorded using blockchain technology, in other words, in a public digital ledger. Hence it is means all the computer in the network have a copy of the digital ledger for NFT and such information is difficult to forge. Just like the internet was considered a bubble back in the days when it first started. There was a bubble and it burst, howerver, it did not wipe out the Internet. So, is the technology for NFT strong enough ? Maybe. Is NFTs important for the future of crypto and tech sphere ? It is a very high risk asset class at this moment. The NFT craze is reminiscent of the Bit coin frenzy in 2017 and it could drive innovation. On the other hand, could it turn out to be another big bubble ? The jury is still out, and one does not know where the pendulum will swing in a year or so.
