What is a NFT and why should I Care?

“NFT” stands for non-fungible token. An NFT is a unique (“non-fungible”) digital asset (“token”) that cannot be directly replaced by another digital asset. Some people hear or see the phrase “digital asset” or the word “token” and think NFTs are a kind of cryptocurrency.

Is NFT a bad thing?

However, at a certain point, when the flow of new investors diminishes and the reinvestment in the project diminishes, that bubble will eventually burst. So, investing in NFT is not a bad thing, but it is necessary that you do it with awareness and informing yourself as much as you can.

What does NFT stand for?

“NFT” stands for “non-fungible token”, which simply means that it’s a one-of-a-kind token. Unlike cryptocurrency, such as Bitcoin, each token is different from another and can be uniquely identified on the blockchain. Each token therefore also has its own history. With Bitcoin, it doesn’t matter which one you have.

Why do people buy NFT?

People buy NFT the same reason as they buy a piece of artwork or antique in the real world. They enjoy buying rare, adorable and valuable things. Some people simply display it and like to show off, while some earn from trading it.