When you hear the word Non-fungible Tokens (NFT), the following comments come with it; is it the future of tomorrow's licensing and auctioning gallery, or is it just a way to get rich, is it a scam, or is it just a stupid idea to not waste time on.
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NFT in Simple Terms
To understand this, I will do a little class on NFT. NFTs are Non-fungible Tokens, meaning that they are tokens that serves as assets in that they store values and information that can be seen instead of algorithmic numbers (call it collectibles and you are right). So when i send an NFT token, i am sending a picture, document, video, and so on and not a token that displays in numbers. These tokens are built on the blockchain, they cannot be divisible, replaced, copied, and they can be sold for monetary value. While there are many JPEG and PNG images, MP4 videos and so on, meaning that nobody can claim complete ownership to this digital pieces, NFT is a way to confirm that the image is owned by the buyer, collector or producer. The NFT serves as a certificate of authenticity for the collectible since all records are stored on the blockchain which is a distributed ledger which cannot be tampered.
Its Value
While you can use the images at anytime, you are not the owner of the image. While some people think that it is a crazy idea and that it is not worth the time at all, a lot of people believe it is the future and that is what gives value to anything in the world.
Unlike just posting the image digitally everywhere, people love having the bragging right to own collectibles especially when they are rare and can increase in value over time.
The Ridiculous aspect of NFTs
While NFTs were to sell digital collectibles such as designed art, or exclusive collections but then, seeing NFTs such as Apes, Grandma's, Lions, can be very Ridiculous but to be sincere, the prices to go as high as thousands of dollars. Jack Dorsey sold his welcome tweet for millions of dollars but then the tweet struggled to be sold for $2000 when the buyer was going to sell because there was no Jack Dorsey behind the sales again.
Some NFTs provide utility, especially gaming NFTs but while they do, so many do not provide utility at all.
Some People are just in the world of NFT to take your hard earned money away by selling you NFTs that never exists and going away with the money. The recent Big Daddy Ape Rug Pull is an example where the individual made away with $1.3 million or 9 136 SOL.
Another is the cryptoongooz.app which cloned the original cryptoongoonz.com and made away with people's Ethereum.
What you should consider when Buying NFT
Check the History of the NFT via the blockchain so you do not end up buying PNGs with no blockchain history.
Purchase NFTs with Utility
Purchase what you love not what people are buying. Overtime, so many NFTs eill lose value.
Conclusion
NFT is still quite new, it has allowed people to make Millions and thousands but then, a lot of scams have been going on in this new industry. It is important that you stay safe and you but what is worth it for the future.
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I see a whole lot of people rushing to the nft because of the money therein but few knows much about the pros and cons of it. That can really be quite disappointing when they face after rushing to it.
It need thorough research and understanding
NFT is still young and while a lot of people are building an ecosystem around, some are buying assets for to sell in the future, a lot of people do not even understand what NFT is and so many of them end up making mistakes.
I advise that people Do their research before minting, or buying an NFT.
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