Non-Fungible Tokens or NFTs are digital assets representing real-world assets such as real estate, artwork, memes, avatars, videogame skins, and GIFS. They are tokenized on a blockchain and are unique. It can be argued that NFT artwork has two important purposes. They are:
- To provide the owner of the NFT a piece of unique digital representation of the real-world counterpart and or unique digital art.
- To provide investment opportunities. These are purchased from crypto exchanges such as Crypto.com.
NFTs are considered to be the next big thing in investment terms, and many commentators believe they could have the same potential as Bitcoin in this regard. So what is NFT art?
What is an NFT Artwork?
NFT artwork is artwork that has been created using digital tools rather than real-world tools. Through making an artwork an NFT, the uniqueness and subsequent value of the work are retained. This protects both the creation in terms of value and uniqueness due to the unique metadata of the original work.
It can be copied like famous artwork can be copied. The metadata, however, will show subsequent works as imitations, and their value will be less.
What is NFT Crypto Art Exactly?
NFT crypto art is an NFT that is tied to a blockchain such as Ethereum. This allows the NFT to be traded like a crypto coin or token. The value of the NFT is tied to the blockchain, such as Ethereum, and subsequent price rises and decreases affect the value of the NFT.
What is an NFT Artwork?
NFT art can take many forms. It is tied to other emerging investment vehicles and often exists in the metaverse.
This includes:
- Play to Earn Games Rewards – Some games allow you to unlock NFTs as rewards that you claim from the marketplace. This is often tied to a blockchain game.
- Digital Painting – Here, the artist has created a collectible of kind digital painting.
- Digital Collectables – Here, the artist or artists have created collectible digital ‘cards’ to collect. Bored Ape is a good example of this.
- Memes – These need no explanation
- Gifs – Again, these need no explanation
NFT as Investments
NFTs are creating a buzz, especially as celebrities are purchasing them. Rapper Eminem had a Bored Ape profile picture for some time. This has not gone unnoticed in the investment community, who are now purchasing metaverse land and NFTs like they would cryptocurrency.
Given the nature and volatility of the crypto market, many get advice from companies such as Financer.com before investing in NFTs, cryptocurrency, and stock and shares.
The investment comes in the form of direct NFT crypto art sales and investing in NFT projects that they feel have potential.
What is NFT Digital Art?
NFT digital art is a unique piece of digital artwork that has been ‘tokenized’ on a blockchain. The artwork is purely digital and exists on the blockchain, where it can be bought, sold, and collectible.
NFTs are considered to be the next big thing both in terms of art creation and investment. The time to get on board is now, regardless of your reasons for doing so.
