Around the NFT market, various fables are steadfastly held. At the same time, the indicators speak for themselves: in the first quarter of 2022, the volume of trade exceeded the mark of $54 billion. Although at the end of 2021 this amount was only $13 billion. Not surprisingly, the NFT has become overgrown with myths that are not so easy to get rid of. We offer to deal with the 5 most "tenacious" and popular.
Myth 1: NFTs are hard
For many, it remains unclear: what exactly does he pay for? A vivid example is the Nyan Cat GIF. It flew around the world 10 years ago, and in 2022 NFT with it was sold for 580 thousand dollars. Why pay if you just download?
In fact, everything is simple - you buy a unique digital product with proven characteristics. As with traditional art, value is determined by the fame of the author and the popularity of the asset. For example, paintings by Van Gogh or Monet sell for tens of millions of dollars. But anyone can download a picture from the Internet, print it out and hang it at home. Only this copy has no value.
In the case of NFT, the situation is the same as with a Van Gogh painting - you buy the original work of the author. Therefore, the cost of tokens of famous artists, musicians reaches several million and even tens of millions of dollars.
Myth 2. NFTs are a bad investment
This misconception is closely related to the notion that non-fungible tokens are a bubble with no real value. This myth is fueled by the way unscrupulous sellers counterfeit NFT or speculatively inflate the price. Only one thing will help here - investing in original non-fungible tokens from a well-known author or project.
Myth 3. NFTs are pointless
Digital art has long been part of our lives. Well-known galleries hold various exhibitions from artists in this genre. NFT is just another way to monetize your work, an opportunity to attract new fans to your work. Various additional features, such as animation, allow you to take a fresh look at the works of the author.
Another advantage of NFT is that artists keep in touch with admirers of talent. There are even online galleries that host the same exhibitions as in real life. During the pandemic, this proved to be invaluable and promising.
Myth 4. NFT tokens contribute to the growth of fakes
The more popular the product, the more scammers appear on the market. This fact has not bypassed NFT. If in the world of traditional art there are experts who confirm authenticity, then in the crypto market they are replaced by blockchain. It is in it that all data about the token is stored: the author, creation time, owners and other characteristics. The data is open, so be sure to check the authenticity of NFT before buying. So you will be sure that in front of you is not a fake.
Myth 5. NFT is harmful to the environment
This statement came against the background of statements that miners spend a lot of electricity than cause damage to nature. However, regardless of whether NFTs are issued or not, the crypto world will continue to exist. There is no additional harm from issuing tokens. By the way, large blockchains are starting to take this issue seriously, exploring the possibility of changing approaches to mining, gradually reducing the impact on the environment.
What other myths around NFT do you know? Share your opinion and stay up to date with the NFT world with the Cifris blog.