It seems like non-fungible tokens (NFTs), which are essentially cryptocurrency art, are making national headlines just about every week. Whether they’re being sold for millions of dollars at a famous art auction house, or they’re teaming up with major companies, you’ve likely heard about non-fungible tokens. It’s the newest way to invest in crypto that’s attracting attention, and the popularity of NFTs are growing at an incredible pace. Best of all, many NFTs are based on Ethereum’s network, which is an important note for investors of Ethereum.
What are NFTs?
Non-fungible tokens are unique items on blockchain networks, which are different from standard non-unique cryptocurrencies like Bitcoin and Ethereum. NFTs identify pieces of art or other collectibles. The cryptography used to give them their identity on the blockchain can never be tampered with thanks to technical and irreversible math. Digital artists are creating pieces and then labeling those pieces with one of these unchangeable identities, intertwining the art with its identity on the blockchain and turning them into unique tokens, potentially worth millions of dollars.
As more of the world goes digital, it makes sense that art is following suit. Just like people enjoy collecting physical art like paintings, people also collect digital pieces of art. There are thousands of different NFT artists that create different types of art, including art related to sports, pop culture, and more.
One of Mark Cuban’s favorite NFT collections, Top Shot Moments currently go for several thousand in the mid-tier range, and up to $250,000 for the most desired cards. They partnered with NBA to create art featuring some of basketball’s most iconic stars and most memorable moments.
Beeple is likely the most well-known NFT artist, he’s been creating thoughtful art every day for years, which has gained him a large following. He was the first NFT artist to auction a piece of digital art through the British auction house Christie’s, marking the 255-year-old auction house’s first move into the digital collector’s world. His work, pictured below, was sold for a staggering 69 million dollars and purchased using Ethereum. This piece is a combination of hundreds of other pieces of art.
How NFTs Started and How NFTs are Going
Crypto art and NFTs aren’t new. But they have been gaining tremendous popularity over the past few months. They started back in 2017 when a company named Larva Labs created a series of characters as an experiment called CryptoPunks. They were the first NFTs ever made, and much like Pokémon cards or first-edition comic books, CryptoPunks are desirable collectors’ items and they go for anywhere from $36,118 to 1.24 million dollars.
In 2018 and beyond, as the crypto art space grew, galleries in virtual worlds like Decentraland and Cryptovoxels started cropping up, and owning digital art became cachet. Today, famous artists like Jose Delbo, of DC Comics and Marvel, are making digital art while major crypto exchanges like Gemini host regular drops of new, hand-picked art for sale.
Meanwhile, NFTs as avatars are becoming more common, pieces that used to be just art could be tied together with a person’s online identity. Digital technology opens up a new dimension that isn’t accessible to the physical world, there are countless possibilities and innovators are exploring these new ideas. But NFTs are relatively new to the public, and some people have concerns when it comes to whether or not NFTs can be copied or fraudulent.
Can NFTs Be Copied?
Anyone can screenshot an image in the same way that anyone can counterfeit a painting or sell a print. But it doesn’t retain the same value, and collectors who value originality can still seek out and pay top dollar, or top cryptocurrency in this case, for the real deal. The added benefit of NFT art is that it’s impossible to fake. Their mathematical identity on the blockchain can always be verified, and, likewise, counterfeits immediately identified. Blockchain records can also provide accurate verification of previous owners along with complete transaction history and any other important information relevant to the piece.
While NFTs are surging with newfound popularity, in the future they may become one part of a much larger digital marketplace for everything. Investing in crypto could provide opportunities, and if you’re asking yourself how to invest in blockchain, the NFT space may be one place you might not want to overlook. On the note of investing, as NFTs gain more trust and attention, cryptocurrencies may become more desirable as well. This is especially true for Ethereum due to its innovative possibilities and price performance.
Investing in Ethereum and Other Cryptos
NFTs aren’t the only potential investments within the realm of cryptocurrencies. Most non-fungible tokens are on Ethereum’s network, which is important for cryptocurrency investors to understand. This means as NFTs grow, Ethereum may grow in price as well. Investors looking to take advantage of Ethereum can consider creating a cryptocurrency IRA. Our cryptocurrency retirement accounts offer significant tax advantages that can help you keep the earnings you deserve. Plus, we’re the only cryptocurrency retirement platform with IRA Earn, which offers 2.7% APY on Ethereum, this may provide you with an additional way to grow your wealth.
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