Are NFTs and cryptocurrencies a scam or legit; can we trust them? Should we invest in them?
In a world as wonderful and technologically advanced as we live in, we are constantly surrounded by technology and use it for everything. However, it is always important to stay on top of things and keep ourselves and our online presence safe. One of the newest world interests is the forming of NFTs and what they represent.
Podcast: Are NFTs and cryptocurrencies just a big scam?
NFTs or Non-Fungible Tokens are unique crypto tokens that supposedly represent a set of non-interchangeable data. This data, known as metadata, is stored on a blockchain and serves to give information about other data. The reason NFTs are such a big deal is that, unlike standard crypto tokens, such as Bitcoin, the token is unique, and people care about that specific token instead of just what it represents. For example, you cannot choose which specific Bitcoin you want, but you can select what NFT you want.
However, NFTs are not only unique in their look but also in the information they represent. Since NFTs are made with metadata, data that describes other data, they take with them the name of the creator and the date of creation, which serves as a sense of legitimacy. If you want to see all the files contained in an NFT, you can click on the NTFS System Files.
Cover image: NFT digital art purchased by Eminem. Stafford, United Kingdom, January 5, 2022 “By Ascannio – stock.adobe.com”.
Both NFTs and Crypto are digital money that governments or private organisations do not control. However, as we can see in the Bitcoin trend, private people still play a significant role in the value of this cryptocurrency. For example, Elon Musk is one of the most influential business owners today, and almost every tweet he publishes impacts the price and value of Bitcoin.
What this means for both NFTs and Cryptocurrencies is that they are not a scam but are similarly unstable to one. These forms of currency and value are made to be outside the influence of others. Yet, some can manipulate them to make the prices rise or fall.
So, since we’ve established that neither Crypto nor NFTs are supposed to be a scam, should we invest in them immediately?
The problem is that, as with Cryptocurrencies, NFTs are not a physical piece of the world you can own. Also, all the worth of an NFT is based on a digital item. The formation of NFTs and the concept they are built on should allow you to lay claim to a piece of digital information that you will then own. The information of ownership and worth is kept on a worldwide blockchain, a chain of blocks made of information. This data isn’t held by just one person, but by all people connected. This is where the sense of security in purchase comes from.
The biggest problem with NFTs is that we are not sure what will happen to them. Though crypto and NFTs form a part of the new digital age, we have yet to see them stabilise in today’s economy. For this reason, I suggest keeping your money safe for now. If you have the opportunity to invest in crypto or NFTs, do so with caution, and do it in small amounts that you can “afford to lose.”
Cryptocurrencies and NFTs may seem like a great way to get rich by investing early. For some, this is the case. However, it is best to wait for a more stable market before investing unless you have money to spare.
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