How do you know if an NFT will appreciate it? – Cryptocurrencies – Estadão E-Investidor – Main financial market news

  • NFTs are digital assets that represent real-world objects, such as art, music, video, and game items, and are sold online.
  • The most common digital assets are related to digital artwork, but there are also games, music, photography, and additional sports that can be used to record a physical object following NFT protocols.
  • The valuation of NFTs, as with works of art, depends on the equation between scarcity and demand that arises around these types of products. Therefore, the shorter the job, the more valuable it will be.

You may have already noticed NFTs are issues in the investment world and abroad. In 2021, “NFT”Was named the word of the year by the British Collins Dictionary. But in the end, how is NFT valued?

To delve deeper into the subject, he has electronic investor He spoke with Rafael Dittrich, founder of the digital business accelerator Betminds, at the VTEX DAY – São Paulo (SP) digital transformation event.

What is NFT?

They are non-fungible tokens (NFTs) digital assets which represent real-world objects (such as art, music, video, and game items) and which are sold online. “Unlike cryptocurrencies like Bitcoin and many other utility tokens, NFTs are not interchangeable,” Ditrich said.

Dittrich explains a fungus element, like money, can be exchanged for another fungible element. For example, “a real banknote can be replaced as long as it has the same monetary value,” he said. Intangible elements are works of art, rare objects and other unique specimens.

Monalisa frame with pink, blue and purple pixels
NFTs are digital assets that represent real objects and are traded online. (Source: Shutterstock)

Each one NFT is registered in the blockchain, a kind of cryptocurrency book. The mechanism ensures the uniqueness and ownership of the asset, enabling its trading. “Non-fungible tokens represent something specific and individual that cannot be replaced,” the executive clarified.

How to invest in NFT?

In fact Invest in NFTsit is necessary buy a digital asset. According to the expert, the most common digital assets today are related to digital art work, but there are also accessories for games, music, photography and sports.

NFTs can be negotiated directly between stakeholders. However, it is the most common buy and sell NFTs on specialized platformssuch as OpenSea and Rarible Coinbase NFT.

Once acquired, non-fungible tokens can be used for any transaction, even as a guarantee on a decentralized loan.

How do you know if an NFT will appreciate it?

Young man showing NFT on mobile
Launching a digital business accelerator launches the NFT collection. (Source: Betminds / Reproduction)

Dittrich explains NFT estimatesas with works of art, it depends on the equation between scarcity and demand which arises around these types of products. Therefore, the shorter the job, the more valuable it will be.

NFT creates value if the work is something that the public appreciates. “To do this, it is necessary to understand the project and what it will create for those who have it. There are many options, but scarcity will have a lot to say about future appreciation, ”said the specialist.

It can also be related to the artist who created the price of digital work in the same way that it does in the traditional art market. This is another factor that can lead to critical market or digital asset market opinion NFT appreciation.

Three NFTs from the Bored Ape Yacht Club Collection
Bored Ape Yacht Club’s NFT collection is the most expensive in history. (Source: Shutterstock)

Dittrich cited Bored Ape Yacht Club’s NFT collection as an example. The iconic monkeys in the collection have won celebrities, raising the status of the industry. Bored Ape Yacht Club has been established as the most expensive NFT collection in history, with the cheapest NFT costing BRL 1.7 million. NFT transactions easily exceed millions of dollars.

Also read:Bored Apes: NFTs that may own Neymar’s “partners”

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