What Is An NFT?

in cryptocurrency •  2 years ago 

Non-fungible tokens (NFTs) are incredibly common in today's world. These electronic resources, which range from artwork and music to tacos and toilet paper, are selling like the remarkable Dutch tulips of the seventeenth century, some for very high prices.

But are NFTs worthwhile in terms of money or promotion? They are an air pocket that is about to burst, according to some experts, akin to the internet frenzy or Beanie Babies. Others acknowledge that NFTs are here to stay and that they will continue to alter financial planning for all eternity.

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What Is An NFT?

A NFT is a digital asset that simulates real-world stuff including artwork, music, in-game items, and videos. They are regularly purchased and traded online in exchange for cryptocurrencies, and they are typically encoded using the same software as many other cryptos.

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According to Arry Yu, managing director of Yellow Umbrella Ventures and chair of the Washington Technology Industry Association Cascadia Blockchain Council, NFTs essentially produce digital scarcity.

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