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What are NFTs?
Let’s talk about NFTs. NFTs have grew in popularity recently. What is an NFT? An NFT is a Non-Fungible Token. They are digital assets really. What does fungible mean? Things like US dollar bills and gold are examples of fungible items. A dollar maintains its value and can be replaced by another dollar. If I lend you 15 single dollar bills and you give me three 5 dollar bills back, they both will hold the same value. So what is non fungible? An example of something that is non fungible would be artwork. Artwork is an asset that cannot be substituted. It has a unique attribute that makes it different than another peace of artwork. Unluck the dollar bills, two pieces of artwork do not universally hold the same value. Non fungible items can be physical or digital items.
How are people making money from NFTs? You can sell your digital assets on a site like OpenSea, which is one of the popular NTF marketplaces. The site will walk you through how to turn your current digital asset into an NFT. You will need a crypto wallet to purchase or sell NFTs. OpenSea does a good job in walking you through those steps as well.
Ways to make money with NFTs
• Digital assets
• Music
• Art
• Photography
• Digital real estate in the meta verse
Yes, that is right. People are buying and selling real estate for a digital world. One of the popular digital real estate sites is Decentraland. You can buy digital spaces in their meta-verse and create your own world, rent it out, or even sell it again the market increases.
Value
The awesome thing that could happen to your NFT is that the value can increase out of nowhere. Value for an NFT is perceived by the public. There are NFTs that cost 300K because the public has perceived the value to be that high. People have even used NFTs as tickets to events or clubs. The famous Yacht club offers access to all customers who have purchased one of their high value NFTS.
You really do need to find out who your competition is. Not only is this good for your business planning, but it gets you thinking about how you will compete in the business market. This will also help you find your niche and customer base. Now during this process is it recommended to come up with a exit strategy. This is not to assume your business will fail, but you need proper steps to track and close out accounts or pay off investors, employees and stake holders.
Security and NFT Lets talk about cash flow.
If you have a digital asset NFT, that asset is essentially data and a URL. No one can steal that asset or copy it. They will not be able to duplicate the cryptic data behind your NFT. This is great for musicians and artist who want to protect their intellectual property. The one Con to this is for the user on the other end. If someone purchases an NFT from you, or purchased that URL with data, you can essentially change the image linked to that URL which will change it for the customer as well.
Changing Gaming
Imaging playing a multiplayer game in the meta verse with your very own character. Not only that, with your very own digital apartment, furniture and clothing. This aspect of gaming is very new. You can purchase a video game but interact with it using your very own digital assets. These assets are not owned by the video game creators or anyone else. You have your own unique gaming experience.