Debunking the Myths surrounding NFT

Perhaps you love them, perhaps you hate them or maybe you just heard about them from tech and art enthusiasts. Yes, you guessed it right, we are talking about NFTs (Non-fungible tokens).

NFT collectibles are digital assets with a certificate of authenticity and ownership stored on a blockchain. Everyone from musicians to businessmen have welcomed these digital Tokens. These tokens are assets that are sold at online marketplaces and online auctions, and include everything from music to website domains. For a while the hype has turned into a reality for the Middle East art market.

Now that we have given you the basic definition, lets dive deep into what the current trend is really about and what it is most certainly not! Unfortunately, most of the buzz surrounding NFTs is quickly turned into myths and misinformation.

NFTs are NOT Cryptocurrency

The biggest misconception surrounding NFTs is that its a type of cryptocurrency and that could not be more wrong. The main similarity between both is that cryptocurrency and NFTs are stored on the blockchain and the main difference is FUNGIBILITY. Cryptos are fungible items, it can be traded for another crypto. However NFTs are non-fungible, they are a one-of-a-kind collector’s item that cannot be replaced with one another.

NFTs are NOT a novelty with no value

Another common misconception is that NFTs are a novelty holding no real value to their owner. Although NFTs are relatively new, digital art and exhibitions have been around for quite some time, the only difference are NFTs have helped artists monetize their art further.

SHANAFA by Aya Tarek via NFTY Arabia

NFTs are NOT a get-rich-quick scheme

It is not impossible to gain wealth from NFTs but don’t buy an NFT in hopes of becoming a millionaire. Like any other investment, NFTs investors have had their share of successful and failed investments. In rare cases investors have also experienced fraud. It is not advised to take shortcuts when investing.

NFTs are Not easily accessible to everyone on the internet

We bet your mind wonders can’t I just take a screenshot of an NFT and sell it? Absolutely not! No one can forge or copy an NFT because the ownership of these items is recorded in a code set on the blockchain network.

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