What Are NFTs And Why Do Crypto Nomads Need Them?
What are NFTs?
Non-fungible tokens, also known as NFTs, are quickly gaining adoption. Powered by blockchain technologies, NFTs allow users to purchase unique assets, goods, and services.
NFTs, or unique crypto tokens, are different from crypto coins like Bitcoins. One NFT cannot be easily traded for another, at least at face value. The value of each NFT is in the eye of the beholder.
NFTs are excellent investment assets that can be sold and resold on their own or third-party marketplaces, auction houses, or exchanges. NFTs can be converted into cryptocurrencies using decentralized auction houses, decentralized marketplaces, or decentralized exchanges (DEXs), such as Rarible, Zora, or OpenSea. NFTs can also be converted into fiat currency using cryptocurrency spot exchanges or centralized exchanges (CEXs), such as Binance, Coinbase Exchange, or Kraken.
As blockchain communities have defined their own NFT standards, blockchain developers built Layer 1 and Layer 2 solutions to empower creators to create or mint their own NFTs. Layer 1 solutions include Ethereum, Binance Smart Chain, or Flow. Layer 2 solutions include Polygon, Arbitrum, or Optimism.
NFTs are efficient and efficient means of value exchange. When you purchase an NFT, you are exchanging capital for a token. When you mint an NFT, you are monetizing your travel journey with one-of-one or one-of-many tokens. Thanks to lazy minting (a common feature of NFT marketplaces), you don’t pay transaction fees until you sell your NFT.
Who are crypto nomads?
A new generation of digital nomads or remote workers is emerging. People who travel the globe while working online, traveling to foreign countries, and making travel-related purchases using cryptocurrencies. This new type of independent globetrotter seeks to travel with more freedom and make payments with cryptocurrency.
These crypto-friendly digital nomads are called crypto nomads. They work remotely and travel the world with cryptocurrencies. Crypto nomads rely on crypto coins and crypto tokens to stay financially independent from local banks.
The coronavirus 2019, or COVID-19, has shifted the global workforce towards remote work and flexible working hours. From lack of tourism revenue to changing traveling preferences and behaviors, the travel industry experienced major setbacks. While travel restrictions and health requirements were imposed by global countries, digital nomads were eagerly anxious to start traveling again.
Today, the global crypto market cap is $1.98T. One year ago, the market cap for cryptocurrencies was $346.9B. In other words, the global crypto market value increased by 1,600x in one year. Examples of cryptocurrencies include Bitcoin ($BTC), Ethereum ($ETH), Binance Coin ($BNB), Bitcoin Cash ($BCH), or USD Coin ($USDC).
Digital nomads spend fiat currency on travel expenses, food, accommodations, and flights. Crypto nomads spend crypto currency to accomplish the same thing better, faster, and cheaper.
Where possible, crypto nomads chose cryptocurrencies over cash, debit, or credit cards. Crypto nomads realize that not all travel-related platforms, marketplaces, or applications accept crypto. They stay flexible by carrying cash, debit, or credit cards in places where asking about Bitcoin gives them blank stares.
In this article, you will learn about NFTs and why crypto nomads should not only purchase them but more importantly, create or mint them.
Why do crypto nomads need NFTs?
The crypto nomads are remote workers who choose to live a crypto-friendly lifestyle where they can move around the world, earn income and pay for expenses using cryptocurrencies. While all nomads must comply with laws and regulations, some nomads, depending on their citizenship, are exempt from capital gains on cryptocurrencies.
NFTs are becoming more prevalent in the world of travel. NFTs empower crypto nomads and communities serving them. NFTs are particularly useful for travelers seeking flexible and secure payments for digital products or services. They allow digital nomads to easily purchase goods and services in cryptocurrency instead of fiat currency, opening up new opportunities for crypto-enabled asset exchange and international arbitrage.
As the popularity of cryptocurrencies grows, more people are choosing to travel with their crypto wallets, not their physical wallets. Crypto wallets are a great way to store your crypto coins or crypto tokens where you control your own private keys. Mobile crypto wallets, such as Rainbow Wallet, provide an easy way not only to store NFTs but also to share them with others. Blockchain wallets have a master key made up of a 12-word phrase to unlock your wallet on the blockchain. In other words, signing into your crypto wallet, and viewing your NFTs, is as simple as typing your secret recovery phrase.
Similar to how Bitcoin ($BTC) and Ethereum ($ETH) altered the financial markets, NFTs are changing the way digital nomads and remote workers spend capital and earn capital.
From purchasing travel-related flights, activities, or food to earning capital by sharing travel journeys, NFTs empower digital nomads with crypto tools. NFTs empower modern nomads and global travelers to store travel-related content on the blockchain and create digital trails of their travel experiences. NFTs unlock new travel-related possibilities, opportunities, and experiences. They unlock unique travel experiments and offer hope to the dwindling tourist industry.
Originally published at localteam.xyz on August 13, 2021.