Blog Crypto NFT Meaning: What Are NFTs, and Will They Stick Around?

NFT Meaning: What Are NFTs, and Will They Stick Around?

date October 29, 2021 time 5 min read 877 views

Even if you’re not usually part of the crypto scene, you’ve probably heard the word “NFT” if you’ve used the internet in 2021. But are they the future of ownership (and art), or just the latest fad destined to fade away in a few months? To answer that, you’ll need to understand the NFT meaning and how they work, which we’ll outline here.

In March 2021, the US artist Beeple sold an NFT for $69 million at Christie’s auction house, setting a world record for the NFT sale with the biggest sale (and the third-highest ever achieved by a living artist). The item in question? A JPG. It was groundbreaking news, and NFT mania has swept the world ever since. What are NFTs? The NFT meaning and associated concepts are lost on most of us. What are they, and are they the real deal?

Despite the acronym being thrown about everywhere, most people are struggling to get their heads around the NFT meaning.
Despite the acronym being thrown about everywhere, most people are struggling to get their heads around the NFT meaning. (Source: Pixabay)

It’s time to set the record straight. In the blog, we’ll set out what all the fuss is about, what to expect from NFTs in the future, and how you can get involved with us here at MyConstant.

Defining the meaning of NFTs

Let’s find out the NFT meaning. NFT stands for digital fungible tokens, but that’s a term that probably leaves you none the wiser about what we’re discussing here. Let’s break it down. “Fungible” means that something is mutually interchangeable with others of its type (like one bitcoin or one US dollar); an NFT is special because of its uniqueness.

Think of it like a one-dollar bill that isn’t interchangeable with every other one-dollar bill but instead represents a specific good (such as a particular house).

How NFTs work

In other words, the primary use of NFTs is to represent ownership of a particular item. This might sound a little lackluster, but NFTs are so much more powerful than the digital equivalent of a piece of paper saying “this picture belongs to John.”

Since they’re built on the Litecoin vs Ethereum blockchain, they can execute smart contracts that assign an owner and create a public ledger of who the owner is.

So far, they’ve mostly been used for selling digital art. This might seem counterintuitive considering that the digital items being sold are publicly available online, so technically anyone can access them or download them. But that hasn’t stopped the millionaire art collectors from investing, so who are we to say anything?

The vision behind all of this is a world that empowers artists and creators, who can profit from selling ownership of their work yet still retain copyright and reproduction rights. This enables them to make money move in ways that were never possible before, and all without relying on a middleman to do it. Some NFTs even give artists a “commission” every time an NFT is bought or sold (so artists also benefit from their work increasing in value, not just the investors).

Why has there been a surge in interest recently?

NFTs have been around since 2015, but they’ve mostly flown under the radar until now. At the start of 2021, the first news of high-profile sales came, and since then, intrigue has ballooned. A video clip of LeBron James sold for $208,000 in February, and the $69 million artwork we mentioned earlier was sold in March.

Prominent auctions and sales have played a huge role in making NFTs more mainstream.
Prominent auctions and sales have played a huge role in making NFTs more mainstream. (Source: Pixabay)

These headlines all helped NFTs hit the mainstream. Since then, they’ve been featured in a Saturday Night Live sketch, and all kinds of creators and celebrities have gotten involved, from Logan Paul to Tony Hawk to Gary Vaynerchuk. 

Are they here to stay?

Ah, the golden question after understanding the NFT meaning. It’s easy to call NFTs a bubble and laugh at the ridiculousness of people spending thousands (or millions) of dollars on JPGs, but don’t be so quick to dismiss them.

One of the most impressive things about the artwork that sold for $69 million was the medium through which it sold: Christie’s, an established and highly respected auction house that’s known for selling all kinds of fine art, antiques, and jewelry. The fact that a major auction house established in 1766 has taken notice of NFTs speaks volumes. If the experts think NFTs could be the future of art, why shouldn’t we?

Besides, digital art isn’t the only thing that NFTs are good for. In October 2021, a specialty NFT marketplace called Metacask sold a rare whiskey cask for $2.3 million. This set a record for whiskey casks (who knew that was even a thing?) and shows that selling ownership rights to physical items can also be a hit.

There’s also potential for NFTs to transform the music industry, with talk of potential NFT marketplaces for songs that would give artists the chance to secure their music instead of relying on platforms like Spotify.

This is just one example of many we could use about the potential of NFTs. However, it would be foolish not to acknowledge that there are lots of investment risks involved in NFT—only invest what you can afford to lose.

How to buy NFTs at MyConstant

Whether you think they’re the right kind of crypto investment strategy for you or not, you might wonder how to buy NFTs. 

The good news is that, even if you don’t want to spend millions on digital artwork, you’re not priced out of the market. If you head to an NFT marketplace like Open Sea and Rareable, which hold auctions in the style of eBay, you’ll probably find there’s something small you can buy to dip your toes in the water.

Alternatively, you might even be able to get some NFTs for free.

Not everyone believes that NFTs will go all the way, but here at MyConstant, we’re erring on the side of optimism. That’s why we’ve started giving away NFTs to our users whenever they meet certain milestones, such as making your first deposit or using our products for five years. And we will guide you on how to score an NFT on our platform.

Never mind how to buy NFTs—we’ll gift them to you at MyConstant.
Never mind how to buy NFTs—we’ll gift them to you at MyConstant. (Source: Pixabay)

The NFTs in question take the form of digital art that matches up with your astrological sign. 

What you do with them is up to you: Hold them in your account, withdraw them to a digital wallet, or even sell NFTs for potential profit. But to be in with a chance of winning, you’ll have to get onto the platform and start hitting your milestones.

Investing with MyConstant

Our NFT offerings just scratch the surface of what we offer here at MyConstant. We also have a range of cryptocurrency and USD products that help you take your crypto further and earn more money from your holdings.

For instance, you can deposit your crypto in our multi-cryptocurrency wallet (and even earn interest on stablecoins), or lend crypto out to earn up to 7% APR.

Benefits include:

  • Up to 7% APR on fixed term investments
  • No fees for USD investments
  • Anytime withdrawals
  • Minimum investment just $10
  • No maximum investment limit

Sound interesting? Sign up for a free account today and start investing.

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George Schooling

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