NFT is currently the talk of the town. They are blockchain-built unique digital assets, each having a unique token code that makes them privately owned and secure. That’s right! NFTs (Non-Fungible Tokens) are blockchain-based digital assets that offer private ownership. Since the wave of digitalization is growing, multiple things are being formed into digital assets, just NFTs. On the other hand, NFT incorporation in games is the latest trend most custom blockchain development companies have grabbed. However, the cost to make an app is pretty much close to typical game developments.
More importantly, NFT can take multiple forms, such as in-game items, memes, avatars, tracks, and many others. Additionally, it can safeguard the uniqueness and authenticity of the digital asset so that it’s kept private, and thanks to blockchain technology which has even made them unhackable. On the bright side, you can even sell them in exchange for cryptocurrencies. What’s even more exciting about NFTs is that this has intrigued many artists to invest in. Some have already done and managed to account for over $250 million. Then again, with every rising comes pulling criticisms, and that’s what we’re going to talk about. Keep reading!
Although NFT has more success potential, there are some lingering myths too. Unfortunately, these NFT myths are pretty harmful and very misleading. Not to mention it’s been long said that digitalization is the future. And indeed it is.
Here are some NFT myths that you should be aware of:
Myth 1: Complex Nature
The encrypted nature indicates individual ownership over the digital assets, although this very idea of scarcity is pretty much tempting to NFT collectors. Being on blockchain technology makes NFT buying, selling, storing, and collecting secure and credible. On the flip side, this very nature of NFT consuming and selling is very much complicated at first glance to some. For which, some believe it to be hard and complex to grasp its nature quickly. Then again, it has always been the same case for every new technology which made its first appearance. At some level, to understand the underlying concept of NFTs, you must have somewhat technical knowledge of blockchain and cryptocurrencies. Above all, if you pay close attention to this state-of-the-art technology, perhaps you could enjoy the NFT in the coming future easily. Not to brag, but it’s booming.
Myth 2: Imaginary
It is another myth lingering around NFT technology. At the same time, many reflect on NFT as a not excellent platform to invest in because of its inability to be exchanged into real money. However, usage of NFTs differs from person to person; some like to store them, and some play around with them. At the same time, the scarcity factor in this scenario boosts NFT’s worth by the extensive period for purchase. Too often, the myths can get in your way to secure lucrative business opportunities. Not to mention many have disregarded lingering myths and excelled their NFTs’ values in the market. After the eminent success of bitcoins, these blockchain-powered digital assets are the latest techs to invest in. Plus, blockchain empowers secure and credible NFT transactions, thus, crafting a novel way to do business.
Myth 3: Useless
NFTs have grabbed on the wheel of success and people’s trust after their not-so-long exposure to the blockchain market. This is why many misunderstood the real essence of NFT and reflect on it as a scam and useless assets to trust in, although a plethora of technical business people identified and invested in them at first sight. Nonetheless, myriad legendary artists and technical spirits are exploring NFT today, as it has attracted many traditional-minded people who wouldn’t usually prefer leaving their confined world. Yes, that’s how powerful blockchain technology is getting.
Myth 4: Anyone Can Copy NFTs
Wrong! And completely Wrong! Nobody can copy NFTs, as they’re digital assets entirely assisted by blockchain technology. Individual ownership gets to record in the shape of codes and a unique one-of-a-kind algorithm that cannot be changed. On the other hand, blockchain technology is more secure than physical ones, which cannot be easily hacked and copied. In a more typical sense, blockchain guards its built assets, just like NFTs. By the way, In the world of Game-fi, NFT plays a more enticing role that we cannot overlook. NFT based Games ensure a novel way to earn your income. In the P2E (Play-To-Earn) models, you can earn and sell your in-game NFT (Digital game assets) to other players/NFT collectors to build your income – easy-peasy. On the bright side, the NFTs exchange process is simple and easy, just like trading blockchain-based crypto, bitcoins, and other cryptocurrencies.
Myth 5: Harmful to The Environment
Throughout the NFT’s buying and selling, cryptocurrencies come into use. But also, for minting – a euphemism for data recording on the blockchain, these blockchain cryptos are exploited. When it comes to validating these NFT transactions, Bitcoin and Ethereum are Proof of the work. However, these models consume a lot amount of energy to solve complex and streamline the technical aspects. However, the increased use of electrical energy is the only means to power these technologies. That said, this myth can be partially true for damaging the environment. Then again, let’s face it, we’ve been using a lot of electrical energies for our daily lives’ workings. So, this claim goes to the core perspective of electrical energy consumption, not only for NFTs.
Myth 6: NFTs Are Helping Money Launderers
Another misconception is that NFTs are top in money laundering and that blockchain-based cryptos are for crooks and tax cheaters. Not to mention, but too often, cash is much more crime-driven than cryptocurrencies. Everything on blockchain technology is entirely transparent, and the tiniest amount of improper action is traceable. Besides, on the blockchain, tracking wallet addresses and recovering stolen funds is pretty much simple and easy. So there goes the money laundering myth into the trashcan.
How To Address Myths and tittle-tattles?
Generally speaking, people talk! And they can feed you tons of craps and garbage about technologies’ inability and untrustworthiness. But then again, don’t let them fool you whatever prejudices they have. On the other hand, they may be right on some level to know for sure the underlying reality instead of believing what you’ve heard and to sharpen your mind by not missing out on anything. For that, you can talk to experienced specialists relating to that field, or you can do your research in any way possible to dig out the reality. In the NFT case, a lot has been said lately. But what’s even more surprising is some believed the opinions rather than analyzing the actual concepts.
People are very opinionated these days. So relying on individual opinions is not very smart. In my case, once I asked a friend if he knew the NFT craze and what he felt about investing in them. You don’t believe what he had replied. His actual words were: “Bro, do you see NFT? Nope! they’re all misconceptions to loot simple-minded people.”
Yup! That’s what he said. But was that preferable for me to trust his guts? Not at all. I did my research. And here I am guiding you about NFT myths to be aware of. Still, you can do your own investigating and know the truth.
What Are the Pros and Cons Of NFT?
To show more credibility by this post, we neither support nor oppose anything but only reveal the underlying facts. NFTs are intriguing and a compelling field to devote to by investing. The harsh reality; nothing only has a beneficial side; it might include some disadvantages too. In any case, you’re considerate to invest in NFTs; it’s best to see the upside and as well as the downside.
- Potential Value Growth
- Complete Ownership of Something Unique – Digital Assets
- Crafted a Global Excitement and Trend
- Each Data Record – Transparent and Credible Transactions
- Physical Arts Can’t Be Digitalized
- Uncertain Values
- Environmental Cost
Regardless of the disadvantages, the rising demand for NFT is booming. And many NFTs collectors are playing with millions of dollars worth of digital assets.
To sum up, blockchain technology expansion in the coming future is pretty much noticeable, considering the frenzy it has now. While NFTs are still in the developing stages and it’s rather difficult to grab a handle on them at the moment. Then again, it is essential to study NFTs and their underlying aspects. If not, there is a high chance of falling into misconceptions and myths, and evidently, you may as well fail to benefit from them.
Before jumping into anything because of the ongoing fad, it’s necessary to conduct thorough research. When it comes to Non-fungible Tokens (NFTs), it’s better to know all the perks and challenging sides involved. On the bright side, this will eliminate the risks of buying and selling NFTs in the market.
With the penetrating mobile app development trend, don’t fall behind and get your own app built soon. For that, you can consult custom software development companies today.
Hamza Iqbal – Digital Content Producer for the software development company. He develops and implements content strategies for Cubix, along with aligning business goals with content marketing activities. He actively contributes articles related to digital and content marketing.