(MoneyHippo.com) – While cryptocurrencies like Bitcoin have been around a while, non-fungible tokens are relatively new. The question of whether or not NFTs will be as big as the most popular digital currencies is answering itself every day. As more people and businesses begin to understand exactly what these wonders of the digital age entail, the more likely it seems the answer will be “yes.”
It’s not fair to compare NFTs with any other cryptocurrency. Bitcoin and cryptocurrencies operate as currency and have no other function. An NFT, by its very definition, is a unique method of ownership that steps far outside the world of dollars and cents.
Non-fungibles aren’t about currency, specifically, but they exist on a cryptocurrency blockchain. However, while you can trade one bitcoin for another and have the same value, the same can’t be said of NFTs. They don’t store simple monetary value; they digitally store anything in the world, from art to music to programs to video games.
Creators and owners hold the properties within the decentralized transparency of a blockchain. Like tangible art that hangs in museums, NFTs can accumulate value. So, could there come a time when you can use that expensive CryptoPunk you’ve been hanging onto for a few years to buy a condo on South Beach? The possibilities are truly endless.
It doesn’t stop there. Because of the versatility of a non-fungible token, the future may hold some exciting new frontiers. NFTs could be used to store complex contracts like real estate sales and land deeds on the blockchain, allowing ownership to transfer from a seller’s wallet to a buyer’s wallet instantly. NFTs could also enable individuals to establish ownership of practically anything without the need for a central authority and could become indispensable for international real estate transactions.
With a steady flow of trading and a $27 billion stake in the crypto game, it stands to reason that it may be worth keeping an eye on NFTs.
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