what it is and how to invest – Cryptocurrencies – Estadão E-Investidor – Financial market news

  • Non-Token (NFT) is an encrypted blockchain asset used to trade digital work.
  • Founded in 2014, NFT began to gain strength in 2021, when the market moved $ 44.2 billion of these digital items, often in multi-million dollar transactions.
  • In addition to artwork, non-fungal tokens are common in the video game market and can also be used to register real estate.

Non-fungal tokens (NFTs) they are changing the way we think about art. In contrast to the path of technical reproducibility, the path of technology blockchain, the same as that used in cryptocurrencies, allowed us to establish a shortage of digital objects in the real world, creating truly unique elements that collectors appreciate.

What is NFT?

Vasco’s Afrofuturist NFT was sold for R $ 6,500. (Source: Vasco / Reproduction)

It is an NFT digital assets Represent real-world objects such as art, music, game items, and videos that are sold online, often in digital currency. The term has attracted attention for millions of transactions. Neymar paid R $ 6 million for an NFT in the collection Bored Ape Yacht ClubBought by other celebrities like Justin Bieber and Jimmy Fallon.

Fungible and non-fungible assets: what’s the difference?

It is an NFT non-fungible goodsthat is, unique, different fungal active, which can be replaced with another item of the same type without loss or profit for the owner of the property. A R $ 200 bill, for example, can be replaced with another of the same value, without prejudice. Art, on the other hand, is an example of a non-fungible good as its own the price is very subjective.

Although they have been around since 2014, NFTs are now gaining popularity. In 2021, NFT grew more than the market 41,000% compared to the previous year. The sector’s turnover rose from $ 106 billion in 2020 to $ 44.2 billion last year.

What are the differences between cryptocurrency and non-digital art?

“Compared to non-digital NFT artwork, the difference is that many of these works may be copies, not single copies,” says Mauricio Frizzarin, CEO of Qyon Technology. THE authenticity and uniqueness the non-fungible token is guaranteed in the creation of the ethereum blockchain, a database that records the title and uniqueness of the work.

Transaction history and NFT metadata can be publicly verifiedso it is easy to prove ownership. Once a transaction is made, it is almost impossible to manipulate that data to “steal” the property.

It’s also the uniqueness that sets it apart from NFT bitcoin and other digital currencies. “The cryptocurrency can be exchanged for another that is the same, and that’s not the case with NFT,” the CEO said.

Why is NFT valued?

As Frizzarin explains, “the NFT creates value if the work is something that is valued public ”. As with the traditional art market, it can be related to the artist who created the price of the work. In addition, critical feedback or the digital asset market can lead to appreciation.

You Individual NFTs millions are being sold on auction platforms. Bonds are usually traded in cryptocurrency. Wool First 5000 days, By artist Beeple, it was auctioned off for $ 69 million and is now the most expensive digital art ever sold in the world.

Brazil also joined this wave, and initiatives football clubs are the most visible. Vasco da Gama launched a digital token portal in honor of Black Awareness Day and also sold an NFT for BRL 6,500. São Paulo, Palmeiras, Corinthians and Santos also entered the market.

How to invest in NFT?

Picasso’s original draft was burned to become a digital and NFT work. (Source: Unique.One/Reproduction)

Content creators are currently the biggest beneficiaries of NFT creation. They can use technology to negotiate effectively decentralized their work without the need for a large company. However, investors can make profitable transactions depending on the item they choose.

NFTs can be negotiated directly between stakeholders. However, the most common is to buy and sell specialized platformssuch as OpenSea and Rarible Coinbase NFT. Once acquired, non-fungible tokens can be used for anything, including collateral in a decentralized loan.

Ownership of assets, as well as the security and right of transactions, are not an issue. “Blockchain is the safest mechanism I know of today when it comes to protecting the title of an asset,” Frizzarin says. “However, from a financial standpoint, it depends on how the market reactsas with most assets in general, ”warned the CEO.

Sources: Mauricio Frizzarin, CEO of Qyon Technology; OPEN SEA; Ethereum.

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