Interesting things about NFTs:
Non-Fungible Tokens, popularly known as NFTs, as the name suggests, is a non-fungible—unique, irreplaceable—token. To explain it better, currency, or even bitcoin, is replaceable, i.e., fungible. You can trade one for another. Then we covered a few interesting NFTs facts you need to know, that they can be anything digital—music, art pieces, or even a digital copy of your face. NFTs entered the market around 2014, but they have gained popularity recently.
Exciting Facts About NFTs
- Many get confused between cryptocurrencies and NFTs. NFTs are unique; they have only one owner at a time, they can be shared but not duplicated. NFTs work on blockchain technology, which is known for safety and security. Even your social media posts and tweets can be linked to NFTs.
- NFTs allow artists to build their connections and help develop their business by bringing new audiences. Online creators can earn more revenue without worrying about cyberattacks and online fraud.
- The Merge, a collected piece of artwork, was sold for a whopping $91.8 million! The art was created by digital artist Pak, whose identity is unknown, but his iconic artworks are popular in the NFT space. It is among the most expensive NFTs ever sold.
- On May 3, 2014, digital artist Kevin McCoy minted his art “Quantum”, an octagon-shaped animation. This digital art was sold for $1.47m in June, the same year.
- Anyone with a basic knowledge of crypto wallet and Ethereum can create NFTs and anyone can purchase NFTs.
- Several top brands like Asics, Taco Bell, Hot Wheels, Coca-Cola, McDonald’s, Rayban, and Gucci use NFTs for marketing. Celebrities like Justin Bieber, Shawn Yue Man-Lok, Lionel Messi, and Snoop Dogg, too, use NFT.
- As mentioned earlier, NFTs are unique, but they are taxable, just like Bitcoin. You do not have to pay tax on buying an NFT, but if you’re making a profit from selling or trading NFTs you will have to pay taxes.
- NFTs have negative environmental impacts. According to independent studies, to produce one typical NFT, more than 200kg of planet-warming carbon dioxide is produced. Not to forget, the carbon emission in producing the cryptocurrencies used to buy or sell them.
- Virtual land in NFTs is one of the most popular categories in NFTs space. Billions of dollars have been invested in buying virtual land in Metaverse.
- Several research studies say that NFTs are the future of investment.