New NFTs on the Horizon
Various types of NFTs and how they function in the cryptocurrency world
In my previous post on bitcoin, cryptocurrency, and NFTs, I discussed the basics.
Since NFTs are a hot topic, continuously trending, evolving, with new NFTs dropping consistently, I’ll just recap its definition.
Mark Cuban, one of the billionaire sharks on “Shark Tank,” and Dallas Mavericks’ owner, best defines an NFT as — “a digital version of a piece of art.”
And if you’re not watching closely and keeping up, new NFTs may just pass you by. But, app creators have that covered so you won’t miss a thing!
NFT trackers have been created as apps, which are available in the Google Play Store.
So, just what types of NFTs exist?
In the world of the “bankless community,” NFTs have blown-up!
According to “Just Creative,” an NFT can be just about anything.
If you can imagine it, create it by drawing it, or even have an ear for creating a sound byte, and add a monetary value to it — you’ve got an NFT, and there are tons of them!
What makes an NFT valuable is its unique, original, one-of-a-kind creation, hence, the “non-fungible” tag, which usually are of more value to collectors, although some NFTs can have duplicates or clones.
NFTs, so far, have been categorized in 10 different areas — according to Just Creative:
- Collectible items/Trading cards
- Event tickets
- Music and media
- Big Sports Moments
- Virtual Fashion
- Real-world assets
- Domain names
So, how do NFTs function in the bankless world?
Well, it’s real simple.
NFTs are bought, sold, and traded as collectible trading cards for goods and services, and even real estate (Real-world assets).
Subscribers relish the idea of not having government oversight, and their financial transactions not having to pass through third-parties, such as banks. This eliminates a financial trail, and perhaps taxable assets and income.
However, non-government involvement with cryptocurrency is becoming short-lived.
NFTs and crypto can be tracked on a digital ledger, unless they use privacy cryptocurrency coins — your IP address is tracked so the government can always snoop.
When I filed my taxes last year for 2020, and again for 2021, this year, I was asked if I had any cryptocurrency transactions and receipts — if I had, I would’ve had to pay additional taxes.
So, if you decide to subscribe to the bankless world of NFTs, just be aware and consider the pros and cons of having them in your possession.
In the meantime, if you want to see additional posts from me, click the link to subscribe: https://whitepaperscasestudies.medium.com/subscribe