Are NFTs a Way to Collect Digital Masterpiece or Gain Ownership?
Sure, cryptocurrency has been more famous than ever. Especially in this pandemic, many people had grown more interested in it than when it first debuted in our respective countries. Nowadays, though, in the world of online trading, it is not only about coins anymore; have you ever heard of NFT? If not yet, we will provide you with a summary of what it is and how it plays a significant role in cryptocurrency.
The Non-Fungible Token in the World of Cryptocurrency
We have all heard of Bitcoin, Ethereum, Ripple, and other major cryptocurrencies being traded and purchased in the cloud market. These coins can be purchased and traded according to when a trader wants to, but their value does not change — meaning, you can trade a Bitcoin for another Bitcoin, and it’s still the same thing.
Non-fungible Tokens (NFTs) play a bit differently than these coins. These are tokens that have premium value. When we say premium value, we want to put it this way: original artwork of a certain someone that revolves digitally. With that said, we can say that these are like “watermarked” properties that traders can purchase, which can either be “collectibles” or “ownership rights.”
Why Would We Want to Purchase NFTs if These Are Just “Collectibles”?
These tokens are embedded with the owner’s copyright. For example, I am going to purchase an original Picasso painting. That Picasso painting can be replicated to the tee, even including Picasso’s signature, but only I have the original version of it.
Now, what does that mean if you purchase them? It means that since you purchased the digital masterpiece with the creator’s copyright, you can use it to your liking (upload a photo of it, use it as a primary photo in social media, etc.).
What Do We Do With These Non-Fungible Tokens?
Well, it depends on whether you are the buyer, the collector, or the creator.
- What if I am the buyer?
If you are the buyer, definitely you’ll have bragging rights. Purchasing these tokens shows that you have a “shared ownership” of that masterpiece, which is commonly referred to as “security.”Since that is the case, as we have mentioned before, you now have the right to use that particular artwork according to your liking.
With “security” in mind, NFTs can be placed out there to give equity (shared ownership) or as a way to battle debt (collateral).
2. What if I am a collector?
There’s no problem with that. You may purchase these tokens to have a “copy” for yourself.
3. What if I am a creator?
Nice! Then we will need to put your masterpiece out there so that traders and enthusiasts can purchase it! You can consider it another way of being commissioned apart from the traditional marketing strategies out there.
Our Final Thoughts on These Non-Fungible Tokens
It has been debated if purchasing NFTs are to collect digital masterpiece or a way of trading security (either equity or debt). Well, these tokens play different roles depending on the person purchasing or creating them. But one thing is for sure: it spices up the world of cryptocurrency.