If you’ve been online over the past two years or so, you’ve likely heard the phrase “NFT” a few hundred times. What you might be wondering is: why are NFTs so popular?
That’s a great question and one that we’re going to get into below. Let’s dive into the specifics of NFT popularity, shall we?
What Is an NFT?
First and foremost, let’s get into the question of “what is an NFT?” An NFT, or Non-Fungible Token, is a digital asset that exists on the blockchain and which cannot be duplicated. NFTs run the gamut from artwork to memes to music to videos and more.
At their core, NFTs are collectibles. They’re completely unique and so can be seen as rare possessions.
Why Are NFTs So Popular?
The NFT trend is driven by a variety of factors. Some of the biggest reasons for NFT popularity include:
They Enable You to Own Things That Couldn’t Previously Be Owned
You’ve always been able to own money. You’ve always been able to own a car. However, you haven’t always been able to own, say, a meme.
NFTs have changed that. An NFT enables you to buy a meme and therefore claim ownership over it. This is a new and exciting experience that many people are itching to get in on.
They’re Difficult to Replace
Another reason for the popularity of NFTs is that they’re difficult to replace. Yes, you can find other digital documents that present the way that your NFT does. However, because they don’t possess the same digital fingerprint, they may not possess the same value.
This differs from something like, say, gold or an automobile, both of which can be replaced by similar entities that possess equal value.
They Can Be Used as Currency
Just as you can trade physical baseball cards, you can also trade NFTs. Or, you can swap an NFT for direct cryptocurrency, for example. In essence, NFTs are their own form of currency, one that you can be used online at your leisure.
Make a bet with someone online? If so, you could put your NFT up as the wager. Then, if you lose, you can simply send the NFT over to the person to whom you lost the bet.
The fact that NFTs carry this real-world value makes them quite appealing to many people. They essentially serve as digital collectibles and are treated as such by many around the web.
The NFT Trend Might Not Be a Trend After All
We’ve answered the question of “why are NFTs so popular?” and, as you can see, there’s plenty of reason. While you may currently view NFTs as a trend, there’s reason to believe that they might not be a trend after all. Because they carry real-world value, they do, indeed, have staying power.
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