This post is in response to the question put forth by @allisonmckinney. "What do you think is the biggest misconception or misunderstanding when it comes to NFTs?"
NFTs are very new to the people of the world. The majority of people have no idea what they are. There are many common questions surrounding NFTs that the majority of people are curious about. NFTs can be extremely beneficial to anyone who has the desire to buy them. So, because of that, the buyers should know all of the information about the product before they purchase it.
First of all, NFTs and cryptocurrency are very similar but they aren’t the exact same thing. This is the most common question surrounding NFTs. NFTs are not a currency. They represent the value of another possession that you own. For example, bitcoin is a type of cryptocurrency. Bitcoin allows you to purchase anything you want with your bitcoins. An NFT holds its value because it represents another possession that you own. So, if that possession doesn’t lose value, then your NFT won’t.
However, buying an NFT is almost like you are gambling your own hard-earned money. You’re betting that your product is more valuable than someone else’s product. NFTs are basically just an investment, ownership, utility, or future value. Additionally, NFTs come in all shapes and sizes. There is some worth over 100 million dollars while others are valued at less than 100 dollars. When you sink your money into an NFT you are just betting that someone else will come along and buy your product for a greater amount than you did.
In conclusion, these NFTs can be valuable assets, but you are still risking your money when you buy one of them. You could hit the jackpot and have someone buy your NFT for way more than you bought it for. However, you could also lose all of your money and as a result, you could fall into a deep depression.
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