Tokens that can’t be exchanged for other currency are known as NFTs. The inability to modify or reproduce a non-fungible token makes it a special type of digital asset. You may compare these tokens to digital works of art from a private collection. The collection consists of one-of-a-kind works of art, each of which is valued at a different sum. Like a work of art, an NFT may be traded for cryptocurrency or money. However, the token’s asset transfer is also recorded on the blockchain, much like bitcoin.
This proves who the rightful owner of a certain NFT is. Every NFT is tied back to an underlying digital or even physical object. There is technically no digital thing that cannot be transformed into an NFT. The beauty of NFTs is that anybody can create and sell replicas of viral content such as tweets, Facebook posts, Instagram images, and more. Given the NFT market’s meteoric rise over the past 18 months, there are now a plethora of fascinating opportunities for capital gain.
Investing in digital assets has become an attractive strategy for portfolio diversification, and this practise is likely to grow in prominence in the coming years. Investing in NFTs is a great method to get money. To amass riches, you may either develop your own NFTs, purchase current NFTs and resell them for a profit, invest in NFTs for the long term (wealth creation), or launch your own firm using NFTs as a central component of the brand.
Can You Get Rich with NFTs?
That’s the simplest way of putting it. Several high-profile cases of NFTs creating incredible wealth have occurred in recent years. The preceding cases should serve as inspiration for anybody considering the sale, purchase, or creation of NFTs. “Nyan Cat” gifs are among the most well-known NFTs. Almost ten years ago, the gif’s author uploaded his creation on the web. The gif’s popularity on the internet has skyrocketed since then.
But now, with the rise of blockchain and NFTs, the creator has turned Nyan Cat into an NFT and sold it. About $600,000 worth of bitcoin was generated for the inventor. Don’t forget there are a lot of reasons why this pointless Nyan Cat gif sold for so much money. This can be attributed in part to the creator’s foresight into the NFT realm and the gif’s subsequent viral success. Jack Dorsey and Elon Musk are another prominent pair of entrepreneurs that have successfully used NFT sales. In effect, they both turned their tweets into NFTs and made a profit.
Former Twitter CEO Jack Dorsey was one of those who made money because of a tweet. His profit from the deal was almost $2.5 million. Two inferences may be drawn from these details. To begin, the price at which an NFT may be exchanged can reach absurd heights. Absurd, considering the preliminary expenditure for developing these NFTs was next to nothing. On the other hand, it’s easy to spot that celebrities frequently make up the list of sales. As a result, they were able to sell their NFTs for such high prices.
However, this doesn’t mean that only famous people may get richer by selling NFTs. Numerous relatively unknown people have made a comfortable living off the sale of NFTs at high prices in recent years. Christie’s auctioned Everydays – The First 5,000 Days, a work by artist Beeple, during the first-ever public auction of NFTs, and it fetched a staggering $69 million. The item was a huge JPEG file containing over 13,000 years’ worth of Beeple artwork.