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| What is NFT? How We Earn NFT IN 2022 |
The concept of 'NFTs' was coined in 1999 by the creators of a digital copy-able file that, despite its unoriginal nature, could be reproduced as many times as it took to render it possible.
NFT stands for a non-fatal token but we define them as follows:
NFTs are not physical items. They represent a virtual or abstract representation of an underlying property or intangible asset. While there is no concrete value attached to NFTs, they can convey the same information in the mind of users and provide access to a limited number to them. With this technology, anyone has virtually infinite opportunities for monetization that may be provided with minimal fees.
NFTs are a subset of crypto-assets. This is where people get worried since some of these are highly volatile on prices, and thus unreliable compared to other assets like gold and precious metals.
Also, you need about 25% capital to invest in any project that would qualify for an initial coin offering (ICO). It is also not easy to track each transaction to avoid fraud. But when it comes to investing in crypto-assets, all that's required is a decent wallet, internet connection, hardware that supports mining and hosting the bitcoin and Ethereum coins, etc,., or at least enough cash flow from your account to cover costs and maintenance. You will end up making more money if you have a reliable source of funding. So, what is NFT?
Let’s understand the nit process briefly. For every NFT that is created, each creator of one NFT gets rewarded for his/her contributions. The top 10 percent gets awarded NFT currency which is usually based on market supply. If the NFT is accepted by retail stores then more consumers can purchase the NFT, which increases the supply, leading to a higher reward. The NFT is now available on the e-commerce marketplace, getting more sales and earnings. Also, you can sell NFT through auctions where sellers will either receive a fixed fee in return for providing their NFT for sale (e.g. LIFESTYLE) or they can pay buyers through cryptocurrencies such as Ether, Wave shine, Dogecoin, and so on. Finally, you can offer multiple services, including trading and art, using NFTs. All these activities create additional content and generate new and interesting content depending on what service you own and how much traffic you bring to the platform. UT its history as we learned in lectures:
In the year 2005, Satoshi Nakamoto published the paper 'Bitcoin: A Peer-to-Peer Electronic Cash System'
In 2014 Bitcoin price rose and then came back lower and eventually started rising again and again until 2017 when it reached its peak.
In 2018 investors poured billions of dollars and released tens of millions of Bitcoins till recently it peaked till November 22, 2018, at which point BTC price went down again
In 2019 after a crash in crypto prices due to the Covid-19 crisis, a major spike in both USD and NFT prices happened around July 2018
In 2020 the world is battling against the Coronavirus pandemic and bitcoin has become one of the biggest financial backers. Here are some statistics on NFT market cap and valuation in the USA in August 2020:
As you can see, the value of NFTs has been growing over the years and now a significant chunk of global investors consider buying NFTs to store digital copies of assets for trading. Let’s understand why bitcoin and other NFT holders are really buying NFTs:
NFTs attract big investment interest because most cryptocurrency investors are looking forward to getting rich fast and getting access to a lot of coins when the time comes when they need to make investments, buy homes or start businesses.
NFTs allow us to easily move money around without fear of losing it. We can also use our NFTs to host events and keep people entertained. Nowadays almost everyone owns NFT wallets, the same way people own smartphones, laptops, etc. So, why should people go out and buy NFTs?
NFTs encourage diversity in the industry. By creating these, you're giving different chances for people from different countries or professions to participate in the development and distribution of products and services.
NFTs, give ownership to creators. Once somebody buys something from Amazon or eBay, they have the right to decide who gets the item. And once someone else creates something in another person’s opinion and sells that item, someone gets to own the product in the first place
NFTs, give flexibility. In the past, only things that were tangible, like coins or real estate could be sold and bought. Now, NFTs allow you to trade digital copies of these items of your choice for even more amounts. Thus, you're able to transfer wealth from one continent to another as easily and quickly as you want. Also, you can make money online selling your old goods, and now you don't even need a physical presence to do that!
NFTs help spread awareness about a thing. One reason that makes NFTs very important for marketing nowadays is the social media advertising feature. Since 2016 NFTs have been used for promoting certain campaigns to promote music releases, movies, games, and apps. The main goal of Facebook Ads is raising funds for companies. Social Media advertising is basically NFTs and there are tons of examples of good work done by great teams using these tools.
Lastly, NFTs help raises awareness around a particular brand. When people are buying a car for example they tend to want a nice interior and attractive interior design. As NFTs grow in popularity they're becoming better and better. There are lots of reasons to believe that NFTs will take over traditional advertising, such as better quality content delivery with added features and tools, improved user experience, faster response, shorter lead times, and more.
NFTs are being built today as well as hundreds of thousands of projects being launched by various developers and partners who develop unique solutions for the specific business challenges and problems of the modern economy. These developments open the door to exciting future possibilities, thus making the idea of blockchain being a big part of everyday life better.
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