NFT tech is a new phenomenon sweeping across mainstream media and piercing every aspect of our lives. However, this technology still remains a mystery to most of us.
Without a tech background or experience in cryptocurrency investing, it can be pretty difficult to understand what an NFT is. The best way to learn about NFTs is to ask experts like Jurgen Cautreels.
Jurgen Cautreels is an internet marketing pro and an NFT expert who has been collecting and experimenting with NFTs since the beginning. We interviewed him to get valuable insight on NFTs and figure out exactly what they are.
Let’s start out simple, what is an NFT? Are NFTs and Cryptocurrency the same things?
NFTs are not a cryptocurrency but they are both built on blockchain technology. Think of NFTs as the product while Crypto is how you purchase the product.
Ethereum is a form of crypto and is also the blockchain where NFTs are minted. So to purchase an NFT someone would need to purchase Ethereum first, then use that Ethereum to buy the NFT.
So no they’re not the same but they are directly related.
What makes an NFT so special? Why should people want an NFT over a regular file?
NFTs are special because they are unique. Take a look at these NFTs on Rarible.com. These digital arts have immense value.
I’ll give you another example, a musician releasing a song online. If the musician releases that song as a traditional MP3 file and sells that single file to one person, that person can copy and paste that file. Now they have two. They could also send that file to 100 people. Now there are over 100 exact copies of that musician’s song, even though they only sold one.
With an NFT this isn’t possible. There is one unique asset, and its ownership can be traced. However many songs the artist mints are exactly how many will be sold and they will not be able to be copied. This makes NFTs much more valuable.
What can NFTs be used for?
NFTs can be used for anything digital. Music, as mentioned above, images, of course, URLs, sensitive documents, and event tickets, just to name a few.
The sky is the limit with NFTs, and I think with how imaginative people can be, we will start seeing some very cool uses of the tech.
How are NFTs even made? Is it a long grueling process or can anyone just go make one right now?
Well yes, it is actually quite a process. Not anyone can just up and create an NFT with no knowledge. NFTs need to be minted onto an Ethereum blockchain, which takes time and money.
Most people will have to pay someone else to get their product or art minted. There are some NFT marketplaces that will allow someone to sell their product first and then mint it.
This way, they are only paying for the minting process if someone actually wants to buy their art.
In your opinion are NFTs worth the investment? Should we all start buying them up right now?
I think they are worth the investment, of course. Just like stocks though, you have to be smart and do your research.
I could say stocks are worth the investment, that doesn’t mean you should go buy equity in every company on the stock market. Do your research, learn about the NFT markets and if you are interested then yes, I think there is a lot of money to be made through NFT investment.
That’s why I’ve been investing in them since the beginning.